Common Forms of Instruments: CRCM Exam | ABA Provider

B

The question is asking you to identify the option that is NOT a common form of instrument when it comes to electronic images of an item along with electronic information describing that item in an approved format.

In the context of banking and financial transactions, an "instrument" refers to a document or medium that represents an amount of money, such as a check or a promissory note. In recent years, there has been an increase in the use of electronic instruments in banking, where an electronic image of an item (such as a check) and its corresponding electronic information can be considered as a valid instrument.

Option A states that checks are a common form of instrument. Checks are a widely used form of payment, where a person or organization writes a draft on their bank account and orders the bank to pay a certain amount of money to the recipient. This is a valid option when it comes to electronic images of checks.

Option B states that paychecks are a common form of instrument. Paychecks are a type of check that an employer issues to an employee to pay their salary or wages. This is also a valid option when it comes to electronic images of paychecks.

Option C states that cash items are a common form of instrument. Cash items refer to checks or other items that are payable on demand, collectible at par, and accepted at the Reserve Bank. This is also a valid option when it comes to electronic images of cash items.

Option D states that noncash items are a form of instrument that require special handling. Noncash items refer to instruments that are not payable in cash, such as bonds or securities. These instruments require special handling, such as clearance through a clearinghouse, and are typically not considered a common form of instrument in the context of electronic images of items and information.

Therefore, the correct answer to the question is D: Noncash items: Items that a Reserve Bank classifies as requiring special handling.