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Exam CRCM topic 1 question 192 discussion

Actual exam question from ABA's CRCM
Question #: 192
Topic #: 1
[All CRCM Questions]

EFT provides consumers with limitations on liability for unauthorized electronic fund transfers. It includes the following types of funds transfers EXCEPT:

  • A. Point-of-sale transfers
  • B. Automated teller machine (ATM) transfers
  • C. Transfers initiated by Fax
  • D. Withdrawals of funds, including merchant transactions where no electronic terminal is involved, if the customer's account is debited
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Suggested Answer: C 🗳️

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Cam22
4 months ago
Selected Answer: C
The correct answer is C. Transfers initiated by Fax. The Electronic Fund Transfer Act (EFTA) and Regulation E, which implements the EFTA, primarily cover electronic fund transfers such as point-of-sale transfers, automated teller machine (ATM) transfers, and withdrawals of funds including merchant transactions involving electronic terminals. However, transfers initiated by Fax do not fall under the typical categories of electronic fund transfers as defined by Regulation E, making option C the correct answer as the exception among the listed types of funds transfers.
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