Jones, a food wholesaler whose company has an account with City Bank in New York City, is traveling in California on business. He finds a particularly attractive offer and decides to buy a carload of oranges for delivery in New York. He gives Saltin, the seller, his company's check for $25,000 to pay for the purchase.
Saltin deposits the check, with others he received that day, with his bank, the Carrboro Bank. Carrboro Bank sends the check to Downs Bank in Los Angeles, which in turn deposits it with the Los Angeles Federal Reserve Bank (L.A. Fed). The L.A. Fed sends the check, with others, to the New York Federal Reserve Bank (N.Y. Fed), which forwards the check to City Bank, Jones's bank, for collection.
a. Is City Bank a depositary bank? A collecting bank? A payor bank?
b. Is Carrboro a depositary bank? A collecting bank?
c. Is the N.Y. Fed an intermediary bank?
d. Is Downs Bank a collecting bank?