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Exam CRCM topic 1 question 196 discussion

Actual exam question from ABA's CRCM
Question #: 196
Topic #: 1
[All CRCM Questions]

It is not required for accounts where the only EFT allowed is a preauthorized transfer to an account. If the account is a passbook account, the bank updates the passbook on presentation; if not, the bank it at least quarterly.

  • A. A periodic statement
  • B. Change in terms notice
  • C. Unauthorized transfers
  • D. Error resolution notice
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Suggested Answer: A 🗳️

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Cam22
4 months ago
Selected Answer: A
The correct answer is A. A periodic statement. For accounts where the only electronic fund transfer service allowed is a preauthorized credit to the account, it is not required to send a periodic statement for each cycle in which an electronic fund transfer has occurred. However, for passbook accounts, the bank must update the passbook upon presentation by the account holder. For non-passbook accounts, the bank is required to provide a statement at least quarterly.
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