[Cash Availability] Arturo, who owns a vineyard in Northern California, deposits two checks in his local bank on Monday. One check is from Simon, who lives in the area, and the other is from Zina, who lives in Atlanta. Arturo needs to write a check to a supplier from his local account.
-What is the latest date that Arturo will be available to use the funds from both checks?

Question

Quizplus · Accepted Answer

Under the Federal Reserve's Regulation CC, local checks (like the one from Simon) must be made available by the next business day, while non-local checks (like the one from Zina from Atlanta) can take up to five business days. Since Arturo deposited the checks on Monday, the funds from the local check would be available by Tuesday, but he would have to wait until the following Monday for the funds from the non-local check, making option A correct.

[Cash Availability] Arturo, Who Owns a Vineyard in Northern California