Which of the following is/are included in the persons covered under Fedwire transfer coverage?
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A. B. C. D.ABC
The Fedwire Funds Service is a real-time gross settlement system operated by the Federal Reserve Banks that enables participants to transfer funds between accounts at the Federal Reserve Banks. The service is used by financial institutions to send and receive payments for their own account or on behalf of their customers.
The Fedwire transfer coverage is a program that provides protection to participants in the Fedwire Funds Service against the risk of loss due to the failure of a participating financial institution. The coverage is provided by the Federal Reserve Banks and applies to certain types of participants and transactions.
The answer to the question is that all of the options listed are included in the persons covered under Fedwire transfer coverage.
A. Reserve Banks sending or receiving payment orders are covered under the program because they are participants in the Fedwire Funds Service.
B. Senders of payments to a Reserve Bank are covered because they are initiating a transaction through the Fedwire Funds Service.
C. Banks receiving payments from a Reserve Bank are covered because they are the beneficiaries of a transaction processed through the Fedwire Funds Service.
It is important to note that the coverage provided by the program is limited and subject to certain conditions and exclusions. The program does not cover losses due to fraud or intentional misconduct by the participant, for example. Additionally, the program only applies to transactions processed through the Fedwire Funds Service and does not provide coverage for transactions processed through other payment systems or channels.