Larry sent a check to Louise for $50. Larry banks at the Bank of Malden, which has an account at the Federal Reserve Bank of Boston. Louise banks at Farmers State Bank, which has an account at the Federal Reserve Bank of Chicago. Where does the check go after it arrives at the Federal Reserve Bank of Chicago?

Question

Quizplus · Accepted Answer

This is the progression steps needed for check clearing; when the local depositing the check is in a different region from the local bank from which the check is drawn, both district banks become involved in the check clearing.

Larry Sent a Check to Louise for $50