When Alex in Quince Orchard, MD, uses a check to buy a tractor from Steven in Austin, TX, ________ different banks are involved in the transaction.

Question

Quizplus · Accepted Answer

Steven would deposit the check in his local bank in TX. The local bank would then deposit the check in the Federal Reserve Bank in Dallas. The Federal Reserve Bank in Dallas sends the check to the Federal Reserve Bank in Richmond, which then forwards the check to Alex's local bank in MD. Alex's bank deducts the amount from his account and then the payment is sent back through the system until eventually Steven's account is credited. Four banks are involved in the transaction.

When Alex in Quince Orchard, MD, Uses a Check to Buy