Foreign Correspondents for which the Federal Reserve maintains an account

B

The term "CRCM" refers to Correspondent Relationships with Foreign Banks and Foreign Financial Institutions, which is a regulation enforced by the Federal Reserve in the United States. The regulation outlines the requirements that banks and financial institutions must follow when establishing and maintaining relationships with foreign banks and financial institutions.

Under the regulation, banks and financial institutions that maintain correspondent relationships with foreign banks and financial institutions must establish and maintain appropriate due diligence policies and procedures to assess the risks associated with those relationships. Additionally, banks and financial institutions must maintain an account for each foreign correspondent with which they have a relationship.

Of the answer choices provided, all but one are types of foreign correspondents for which the Federal Reserve would maintain an account. Specifically, the correct answer is A. A foreign bank. This is because a foreign bank would not typically maintain an account with the Federal Reserve, as it is not a member of the Federal Reserve System.

The other answer choices are all types of foreign correspondents that may maintain an account with the Federal Reserve. Specifically:

• B. A foreign banker's Lessee: This refers to a foreign financial institution that leases space or equipment from a U.S. bank or financial institution.
• C. A foreign state: This refers to a government or central bank of a foreign country.
• D. A foreign correspondent or agency: This refers to a foreign bank or financial institution that acts as an intermediary for its customers in transactions with U.S. banks or financial institutions.

In summary, while the Federal Reserve maintains accounts for foreign correspondents, the one type of foreign correspondent for which the Federal Reserve would not maintain an account is a foreign bank.