EFTA (Reg E)

Question 1

A customer who has preauthorized transfers made on the 15th of each month to the utility company, sent written notification to the bank on the 5th of the current month that he wanted to discontinue the automatic transfers. The bank received the customer’s notification on the 7th. On the 20th of the month, the customer telephoned to state that his account balance indicated that payment was NOT stopped. The bank should advise the customer that:

A. The problem must be corrected by the utility company
B. The bank has no liability, but will discontinue the transfer effective as of the next billing cycle
C. Federal law requires 30-day prior written notice to stop payment on preauthorized transfers
D. The account will be credited promptly

Answer 1

D. The account will be credited promptly

Regulation E requires a bank to stop a preauthorized electronic funds transaction (EFT) if proper notice is provided by the customer in a timely manner. 8 days before the scheduled payment is sufficient time for the bank to take action on the customer’s request; thus, the account should be promptly credited. The bank is responsible for stopping the payment, not the utility company.

Question 2

The bank has asked the compliance officer to participate in a committee on debit card dispute resolution. Which of the following would be MOST concerning for the compliance officer to learn during one of the initial committee meetings?

A. All provisional credits are provided to consumers within 20 calendar days following notice of the dispute to the bank
B. All accountholders are provided with opt-in notices for debit card overdraft fees before any such fees are assessed
C. Receipts are made optional at bank-controlled electronic terminals for any transaction for $10 or less
D. 30 days’ prior notice to accountholders is provided for changes in terms to any electronic service aspect of the consumer’s account

Answer 2

A. All provisional credits are provided to consumers within 20 calendar days following notice of the dispute to the bank

It is a requirement under Regulation E to provide provisional credit after a proper dispute within 10 business days after receipt. 20 days is permitted only for new accounts and foreign transactions; thus, the bank would be in violation by providing 20 days for all disputes. All other options are either in compliance with Reg. E requirements or are more beneficial to the consumer than Reg. E requires.

Question 3

Which is considered a prepaid product?

A. A card that is marketed or labeled as prepaid and redeemable upon presentation at multiple, unaffiliated merchants for goods or services or usable at ATMs and that must be accessed by a card
B. A card that is marketed or labeled as prepaid or as a store gift card and redeemable upon presentation at multiple, unaffiliated merchants for goods or services or usable at ATMs
C. An account that is marketed or labeled as prepaid and redeemable upon presentation at multiple, unaffiliated merchants for goods or services or usable at ATMs
D. An account that is marketed or labeled as prepaid and redeemable upon presentation at multiple, unaffiliated merchants for goods or services or usable at ATMs and that could be a checking account

Answer 3

C. An account that is marketed or labeled as prepaid and redeemable upon presentation at multiple, unaffiliated merchants for goods or services or usable at ATMs

Under prepaid product specifications, an account that is marketed or labeled as prepaid and redeemable upon presentation at multiple, unaffiliated merchants for goods or services or usable at ATMs is considered a prepaid product. A card is not considered a prepaid product. The account that could be a checking account is not an accurate statement of a prepaid product.

Question 4

A bank was notified by a customer of an EFT error. That same day, the bank investigated and determined that this was, in fact, an error. A refund must be made within how many business days?

A. 1 day
B. 10 days
C. 20 days
D. 45 days

Answer 4

A. 1 day

Question 5

A customer contacts the bank within 60 days after receiving his checking account statement regarding a point-of-sale debit card purchase for $9.95 that was posted on his statement as $99.50. Unless provisional credit is provided, this dispute must be resolved within how many days after notification from the customer?

A. 1 business day
B. 10 business days
C. 20 business days
D. 90 calendar days

Answer 5

B. 10 business days

Question 6

True/False: Reg E covers transfers that are initiated through an electronic terminal, telephone, computer or magnetic tape.

Answer 6

True

Question 7

What is a covered foreign remittance transfer?

Answer 7

• More than $15
• Made by a consumer in the US
• Sent to a person or company in a foreign country
• Includes many types of transfers (wires, ACHs)

Question 8

How often must the account-holding FI give notice to a consumer when a consumer’s account is scheduled to be credited or debited by a preauthorized transfer?

A. At least once every 60 days.
B. Monthly
C. Quarterly
D. Prior to the initial preauthorized transfer only

Answer 8

A. At least once every 60 days.

A financial institution need not provide notice of a transfer if the payor gives the consumer positive notice that the transfer has been initiated.

Question 9

Under Regulation E, when a bank imposes a change that increases fees or charges related to electronic fund transfers, or restricts availability of electronic transfers, it must provide notice to its customers. How many days in advance of the change must the bank notify customers?

A. 10
B. 15
C. 21
D. 30

Answer 9

C. 21

Question 10

If an institution fails to provide the initial Reg E disclosure, what is the consumer’s liability for unauthorized transactions?

Answer 10

$0. If proper disclosure wasn’t given originally, there’s no liability.

Question 11

First National Bank investigated Mr. Gilbert’s allegation of a $500 EFT error. The bank provisionally credited the account during the investigation. The bank determined that no error was made and notified Mr. Gilbert on April 5 of the results of the investigation. On April 6, the bank debited Mr. Gilbert’s account for $500, which before this debit had a balance of $700. On April 7, checks for $600 and $800 are presented for payment against the account, payable to third parties. On April 8, Mr. Gilbert comes into the bank to withdraw $100. What should First National do?

A. Return both the $600 and the $800 checks and honor the cash withdrawal
B. Pay both checks and honor the cash withdrawal
C. Pay the $600 check and honor the cash withdrawal
D. Pay the $600 check and refuse the cash withdrawal

Answer 11

D. Pay the $600 check and refuse the cash withdrawal

The bank must honor checks payable to third parties for five business days after the transmittal of the notice of the investigation. The bank does not have to honor checks that would not have been paid if the debit had not occurred. Therefore, the $800 check would not be paid. Because the $600 check would have been paid but for the debit of the $500, the bank must pay the $600. The $600 check the bank does have to pay now overdraws the account by $400. (Remember, the account has a real balance of $200.) The bank, therefore, does not have to honor a cash withdrawal—there are no funds in the account and only checks payable to third parties fall under this rule.

Question 12

You are doing a review of the bank’s consumer deposit account periodic statements for Regulation E compliance. As part of the review, you should check for:

A. The actual date the transfer was conducted
B. The authorization code for the transaction
C. The total amount of credits applied
D. The amount of any fees assessed for EFTs

Answer 12

D. The amount of any fees assessed for EFTs

Question 13

What is the base liability for unauthorized transactions?

Answer 13

$50 base liability. This is often waived by the institution due to contractual provisions with Visa and Mastercard.

Question 14

The customer must notify the institution within __ days of the delivery of the periodic statement containing the transaction or else face _________ liability for the transactions after that.

Answer 14

60
unlimited

Question 15

Your bank has decided to discontinue offering debit cards to business customers. Debit cards are currently in the hands of only about 100 business customers who have business checking accounts at the bank. You are asked about what kind of notice, if any, is needed to these customers to discontinue the debit cards that these customers already have. Your first step should be to:

A. Review Regulation B adverse action notice requirements
B. Review Regulation Z change in terms notification requirements
C. Review the cardholder agreement for notification requirements
D. Review Regulation E change in terms notification requirements

Answer 15

C. Review the cardholder agreement for notification requirements

Reg E isn’t relevant because these are business customers and Reg E applies to consumers. The most important source is going to be the cardholder agreement that was provided to the customers when they received their cards. That will determine what, if any, disclosure notice is necessary.

Question 16

Can a bank have special terms or conditions on an account depending on whether or not the consumer opts in to debit card overdraft protection?

Answer 16

No. This is prohibited by Reg E. The bank must offer the same terms whether or not the consumer opts in.

Question 17

When must a customer give notice of an unauthorized transaction?

Answer 17

Within 60 days of when the periodic statement containing the transaction was delivered.

Question 18

First National Bank has an overdraft privilege program available to its deposit customers. Under this program the bank generally pays checks, ACH items and recurring debit card transactions presented against accounts up to a pre-set limit. The bank does not pay overdrafts originated as ATM transactions or as one-time debit card transactions. From time to time, however, point of sale transactions initiated by debit cards are presented as preapproved items and, according to the rules of the card association, the bank must pay the transaction as presented. Therefore the bank does have a few overdrafts originated as one-time debit card transactions. Which of the following is a true statement for the bank?

A. The bank must provide an opt in notice to all its customers
B. The bank does not have to provide an opt in notice, but it cannot charge an overdraft fee on the inadvertent overdrafts created by ATM and debit card transactions
C. The bank does not have to provide an opt in notice to its customers and it may still charge for inadvertent overdrafts created by ATM and one-time debit card transactions
D. If the bank pays overdrafts originated by check, it must also pay those originated by ATM and one-time debit transactions

Answer 18

B. The bank does not have to provide an opt in notice, but it cannot charge an overdraft fee on the inadvertent overdrafts created by ATM and debit card transactions

Institutions that do not authorize payments of overdrafts on ATM or one-time debit transactions are not required to give the notice of affirmative consent to opt-in, but they may not charge a fee for those transactions.

Question 19

Which of the following actions is prohibited under EFTA/Regulation E?

A. Imposing a fee for EFTs
B. Requiring a consumer to authorize payments to a credit account as a condition of an extension of credit
C. Requiring a consumer to provide a written confirmation of an oral stop payment order
D. Requiring a consumer to request an access device in writing

Answer 19

B. Requiring a consumer to authorize payments to a credit account as a condition of an extension of credit

Question 20

If a consumer wants to stop payment on a preauthorized EFT, when must the consumer notify the bank?

A. At least 3 business days before the transfer is scheduled to occur
B. At least 1 day before the transfer is scheduled to occur
C. At least 14 days before the transfer is scheduled to occur
D. At least 10 days before the transfer is scheduled to occur

Answer 20

A. At least 3 business days before the transfer is scheduled to occur

Question 21

The receipt of an EFT must include which of the following terms, as applicable?

A. Posting date of the transaction
B. Institution’s toll-free telephone number
C. Calendar date of the transaction
D. Institution’s address

Answer 21

C. Calendar date of the transaction

Question 22

Mr. Edwards has a First National Bank debit card. The card allows him to withdraw funds from his checking account to pay for goods or services by using major credit card networks. Providers of services that accept MasterCard or VISA will accept Mr. Edwards debit card. Mr. Edwards travels often. In March, while at home, he reviews his checking account statement and notices three ATM transactions whereby funds were debited from his account using the debit card. The transactions were made in San Diego during February. Mr. Edwards never went to San Diego. None of his family members have debit cards. He called the bank and asked to be reimbursed for the $750 that was taken from his account but not authorized by him. What may the bank do?

A. Point out to him the language in his account agreement where he agrees to be liable for all withdrawals, whether or not authorized, and tell him that they will not credit his account for the funds
B. Tell him that they will investigate and the funds should be credited within 20 business days
C. Provisionally credit the account within 10 business days and take up to 45 days to investigate the unauthorized debit
D. Provisionally credit the account within 20 business days

Answer 22

C. Provisionally credit the account within 10 business days and take up to 45 days to investigate the unauthorized debit

This is an unauthorized transfer of funds. The bank cannot contract with the customer for the customer to waive his or her rights. Time periods for error resolutions are not extended for ATM transactions using debit cards initiated within a state.

Question 23

With one exception, the following transactions are considered electronic funds transfers for purposes of Regulation E. Which transaction is NOT considered an EFT?

A. Withdrawing cash from a checking account through an ATM
B. Paying for groceries through a point-of-sale debit of funds from a checking account
C. Transferring funds from a savings account to a checking account at an ATM
D. Transferring funds from a savings account to a checking account by the customer’s telephone call to a bank officer and asking for the funds to be transferred

Answer 23

D. Transferring funds from a savings account to a checking account by the customer’s telephone call to a bank officer and asking for the funds to be transferred

Question 24

A customer calls to notify the bank that a withdrawal made at an ATM located in a local supermarket has been debited from the wrong account. The bank employee applies the point-of-sale error resolution procedures. What should the bank do?

A. Ask the supermarket to credit the customer’s account
B. Freeze the customer’s account until the problem can be resolved
C. Retrain the employee to distinguish point-of-sale transactions from ATM transactions
D. Provide immediate credit, and file a SAR

Answer 24

C. Retrain the employee to distinguish point-of-sale transactions from ATM transactions

The employee used the wrong procedures. The ATM transaction is not a point-of-sale transaction, so the bank should first retrain the employee.

Question 25

Under Reg E, when must a Bank provide a periodic statement?

Answer 25

Statements are mandatory if the account is able to be accessed via EFT. One must be provided at least quarterly AND in each month in which a transaction occurred.

Question 26

Regulation E disclosures must FIRST be provided to an EFT customer either at the time the account is opened or at what other time?

A. With the first periodic statement
B. Before the first EFT occurs
C. Within three business days of opening the account
D. Within three business days of receiving the customer’s request for EFT services

Answer 26

B. Before the first EFT occurs

Question 27

Under Regulation E, which of the following pieces of information must be included on an ATM receipt?

A. The account balance
B. The location of the terminal
C. The time of day the transfer occurred
D. The fact that the transaction will overdraw the account

Answer 27

B. The location of the terminal

Question 28

Final resolution for POS, foreign ATM transaction, and new accounts must occur within __ __________ days.

Answer 28

90 calendar

Question 29

What is “EFT” and what is the definition?

Answer 29

An EFT is an Electronic Fund Transfer. It’s any transfer of funds that instructs a bank to debit or credit an account, other than that originated by a check, draft, or paper instrument.

Question 30

Alicia Perez telephoned the customer service department at First National Bank and requested to have $300 debited from her account and sent to her sister in Peru three days later. Which of the following alternatives best states the bank’s responsibilities to Ms. Perez?

A. Provide a written prepayment disclosure and receipt to Ms. Perez as soon as possible, but before the transfer is made
B. Provide a written prepayment disclosure within one business day of the request; a receipt is not required
C. Provide an oral prepayment disclosure at the time of the request
D. Provide an oral prepayment disclosure at the time of the request and the receipt information on the next account statement

Answer 30

D. Provide an oral prepayment disclosure at the time of the request and the receipt information on the next account statement

When the entire transaction is conducted orally by telephone, a prepayment disclosure may be provided orally (but must be in the language in which the sender conducts the transaction). If the transaction is conducted solely by phone and the funds are debited from the sender’s account at the institution, the receipt may be provided on the next periodic statement.

Question 31

Transfers that vary in amount must be communicated to the designed payee within __ days before the scheduled transfer or may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts.

Answer 31

10

Question 32

Which of the following items is required to be included in the Initial Disclosure provided to consumers for EFT services?

A. Circumstances under which information may be provided to third parties
B. Circumstances under which terms of the EFT service may be changed
C. Circumstances under which a consumer may discontinue the EFT service
D. Circumstances under which a consumer may request additional authorized users on the account

Answer 32

A. Circumstances under which information may be provided to third parties

Sec. 1005.7(9) Confidentiality. The circumstances under which, in the ordinary course of business, the financial institution may provide information concerning the consumer’s account to third parties.

Question 33

The consumer protections of Regulation E cover which of the following transactions?

A. A wire transfer made through the Fedline system by Bill Rogers to make his mortgage payment
B. A $250 automatic transfer made from Ben Stillwater’s checking account to his savings account at the same institution
C. The check Mrs. Flower gave to the dress shop for her daughter’s prom dress and used by the shop to collect information to send a one-time ACH debit to Mrs. Flower’s account pursuant to a notice posted in the dress shop
D. The $175 loan payment made by Juan Pena to First National by depositing it in one of the bank’s ATMs

Answer 33

C. The check Mrs. Flower gave to the dress shop for her daughter’s prom dress and used by the shop to collect information to send a one-time ACH debit to Mrs. Flower’s account pursuant to a notice posted in the dress shop

When a merchant uses a check to obtain account information to initiate an ACH with the consumer’s consent, the transaction is covered by Regulation E.

Question 34

What type of accounts are covered under Reg E?

Answer 34

Consumer asset accounts, not credit accounts, established primarily for personal, family or household purposes.

Question 35

First National Bank received a notice from James Gilbert that a $500 electronic withdrawal from his checking account, which was shown on his monthly statement, appeared to be an error. What must First National do?

A. Investigate the error and make any corrections within 30 calendar days
B. Provisionally credit Mr. Gilbert’s account for the $500, notify Mr. Gilbert of the credit, investigate the error, and make any corrections within 10 business days
C. Provisionally credit Mr. Gilbert’s account for the $500 within 10 business days, notify Mr. Gilbert of the credit, investigate the error within 45 calendar days, and make any necessary corrections within 1 business day
D. Provisionally credit Mr. Gilbert’s account for the $500 within 10 business days, investigate the error, notify Mr. Gilbert of the credit, and make any corrections within 30 calendar days

Answer 35

C. Provisionally credit Mr. Gilbert’s account for the $500 within 10 business days, notify Mr. Gilbert of the credit, investigate the error within 45 calendar days, and make any necessary corrections within 1 business day

The bank must either investigate and correct the error within 10 business days or provisionally recredit the account, notify Mr. Gilbert of the recredit, and correct any error within 45 calendar days.

Question 36

Which of the following actions is prohibited under EFTA/Regulation E?

A. Imposing a fee for EFTs
B. Requiring a consumer to authorize payments to a credit account as a condition of an extension of credit
C. Requiring a consumer to provide a written confirmation of an oral stop payment order
D. Requiring a consumer to request an access device in writing

Answer 36

B. Requiring a consumer to authorize payments to a credit account as a condition of an extension of credit

Question 37

From the date of notice, resolution must occur or a provisional credit to the account must occur within __ ________ days. This requirement is __ days for new accounts that are 30 days old or less.

Answer 37

10 business / 20 business

Question 38

Is a payment where the consumer has to take a specific action to initiate the transfer (such as entering instructions on a touch-tone telephone or on the internet) considered a preauthorized EFT?

Answer 38

No

Question 39

Is a wire transfer between banks or business sent through Fedwire or a similar wire transfer system considered an EFT?

Answer 39

No

Question 40

A bank must keep records of EFT disputes resolved for a period of:

A. 2 months
B. 1 year
C. Permanently
D. 2 years

Answer 40

D. 2 years

Question 41

First National Bank is expanding its deposit services and would like to send out debit cards to a group of its customers. However, these cards have not been requested by the customers and the bank does not want to violate Regulation E. How can First National accomplish this?

A. No cards may be sent except in response to a request. The bank must send letters soliciting a request for the cards.
B. Cards may be sent if they are not validated, if disclosures of consumer’s rights are enclosed, and if the card can only be validated by a request from the consumer with proper identification.
C. No cards may be sent and no direct solicitation for cards may be made. The bank must rely on general advertising.
D. Ready-to-use cards may be sent to the customers provided proper disclosures of the consumer’s rights are included along with a notice that use of the card will validate it for all purposes.

Answer 41

B. Cards may be sent if they are not validated, if disclosures of consumer’s rights are enclosed, and if the card can only be validated by a request from the consumer with proper identification.

Access devices may be sent to customers who have not requested them provided the device is not validated, the consumer’s rights disclosures accompany the device, an explanation of how the device can be validated is included, and the institution validates the device only after a request and with reasonable means of identification such as photograph, fingerprint, or signature.

Question 42

Which of the following pieces of information must be included on a periodic statement according to Regulation E?

A. The financial institution’s business days
B. The name of any third party to whom funds were transferred
C. A summary of the consumer’s liability for unauthorized transfers
D. The balance in the consumer’s account after each transfer

Answer 42

B. The name of any third party to whom funds were transferred

Question 43

Is a payroll account that’s established by an employer on behalf of a consumer covered under Reg E?

Answer 43

Yes, because it’s a consumer asset account that was established for personal, family or household purposes.

Question 44

This foreign remittance disclosure repeats the information in the first disclosure. It is a receipt that tells consumers the date the money will arrive in the foreign country and how the consumer can report a problem with a transfer.

Answer 44

Proof of payment

Question 45

True/False: All disputed transactions are considered unauthorized until demonstrated otherwise.

Answer 45

True

Question 46

When must the initial Reg E disclosure be provided to consumers?

Answer 46

At the time a consumer contracts for an EFT service or before the first EFT is made.

Question 47

How long do consumers have to cancel the foreign remittance transfer and get a refund?

A. 30 minutes
B. 3 business days
C. 30 minutes, or, if a transfer is scheduled in advance, up to 3 business days before the transaction date
D. 1 business day before the transaction date

Answer 47

C. 30 minutes, or, if a transfer is scheduled in advance, up to 3 business days beforethe transaction date

Question 48

What is the exception for providing receipts at electronic terminals (ATM/POS) under Reg E?

Answer 48

If the transaction is $15 or less, no receipt is required.

Question 49

How often must a periodic statement be provided to a consumer if there are no EFTs involved?

A. Monthly
B. Quarterly
C. Semi-annually
D. Annually

Answer 49

B. Quarterly

Periodic statements are mandatory if the account is able to be accessed via EFT.
One must be provided at least quarterly and in each month in which a transaction occurred.

Question 50

Under Regulation E, what is the periodic statement frequency for non-passbook savings accounts on which EFTs can occur?

A. Monthly for accounts with transfers during the statement cycle, and quarterly for accounts without transfers during the statement cycle
B. Quarterly for accounts with transfers during the statement cycle, and semi-annually for accounts without transfers during the statement cycle
C. Quarterly for accounts with transfers during the statement cycle, and annually for accounts without transfers during the statement cycle
D. Semi-annually for accounts with transfers during the statement cycle, and annually for accounts without transfers during the statement cycle

Answer 50

A. Monthly for accounts with transfers during the statement cycle, and quarterly for accounts without transfers during the statement cycle

Question 51

When reviewing ATM dispute files for compliance with Regulation E provisions, you should determine whether:

A. The bank completed its investigation within 90 days after receiving the error notice
B. The bank notified the customer in writing when an error occurred
C. Errors were corrected not later than one business day after determination that an error occurred
D. Notifications to customers that no error occurred included a telephone number for the customer to call for additional inquiries

Answer 51

C. Errors were corrected not later than one business day after determination that an error occurred

Question 52

Business line testing results of Electronic Funds Transfers monitoring under Regulation E has shown some issues when responding to consumers regarding reports of unauthorized transactions. Which of the following would necessitate the development and implementation of an action plan to respond to an issue within the report?

A. The notice of unauthorized transaction from the consumer must come from the customer within 60 days of when the periodic statement containing the alleged error was delivered
B. Consumers are normally held responsible for the first $50 of any unauthorized transaction
C. Provisional credits to new accounts are not provided until 20 business days after receipt by the bank of the report of the unauthorized transaction
D. Transactions are considered unauthorized only if the bank receives a properly-executed Affidavit of Dispute within 3 days of contacting the bank

Answer 52

D. Transactions are considered unauthorized only if the bank receives a properly-executed Affidavit of Dispute within 3 days of contacting the bank

Regulation E does not require an Affidavit of Dispute to investigate a dispute; although the bank can choose to require a written statement to qualify an account for provisional credit. Therefore, an action plan should be developed to alter the procedure. All other choices are in compliance with the requirements of Regulation E.

Question 53

Are preauthorized agreements to make transfers between the consumer’s accounts, pay loans, or between accounts of family members at the same bank, considered EFTs?

Answer 53

No, unless the consumer makes a specific request for the transfer.

Question 54

Are telephone-initiated Fedwire payments subject to Reg E?

Answer 54

No, wires are excluded from Reg E because they are covered by states’ Uniform Commercial Codes (UCC).

Question 55

True/False: Automatic transfers between a consumer’s accounts within the same financial institution are exempt only if the account holders on the two accounts are identical.

Answer 55

False. Automatic transfers between a consumer’s accounts within the same financial institution are exempt, even if the account holders on the two accounts are not identical.

Question 56

Who would benefit the MOST from training on Regulation E’s remittance transfer provisions?

A. Staff who process wire transfers for customers
B. Loan officers
C. Senior management
D. Staff opening new deposit accounts for first-time customers

Answer 56

A. Staff who process wire transfers for customers

Regulation E’s remittance transfers provision applies to transactions where funds are transmitted electronically to foreign jurisdictions. The requirements apply to wire transfers as well; therefore, wire room staff should be trained on the requirements. The rules do not apply to loan proceeds, so loan officers do not need the training. Senior management and new account staff may benefit from the training, but they do not have day-to-day responsibilities that encompass the requirements.

Question 57

What are the disclosure requirements under the foreign remittance transfer section of Reg E?

A. Fee and tax amount, when fees will be paid, exchange rates, reversal provisions, and receipt provision (proof of payment once the wire reaches its intended destination)
B. Fee and tax amount, when fees will be paid, liability provisions, reversal provisions, and receipt provision (proof of payment once the wire reaches its intended destination)
C. Tax amount, when fees will be paid, exchange rates, error resolution, and receipt provision (proof of payment once the wire reaches its intended destination)
D. Fee amount, exchange rates, reversal provisions, and receipt provision (proof of payment once the wire reaches its intended destination)

Answer 57

A. Fee and tax amount, when fees will be paid, exchange rates, reversal provisions, and receipt provision (proof of payment once the wire reaches its intended destination)

Question 58

True/False: For an electronic fund transfer initiated by the consumer between two accounts of the consumer in the same institution, documenting the transfer on a periodic statement for one of the two accounts satisfies the periodic statement requirement.

Answer 58

True

Question 59

Entities providing remittance transfer services under the rule are called ‘‘remittance transfer providers.” If an entity stays below a specific threshold, it is not considered to be a remittance transfer provider in the normal course of business and so is not subject to the requirements of the rule. What is the threshold?

A. 100 or fewer remittance transfers in the previous calendar year and 50 or fewer remittance transfers in the current calendar year
B. 50 or fewer remittance transfers in the previous calendar year and 50 or fewer remittance transfers in the current calendar year
C. 100 or fewer remittance transfers in the previous calendar year and 100 or fewer remittance transfers in the current calendar year
D. 50 or fewer remittance transfers in the previous calendar year and 100 or fewer remittance transfers in the current calendar year

Answer 59

C. 100 or fewer remittance transfers in the previous calendar year and 100 or fewer remittance transfers in the current calendar year

Question 60

Susan has come to your bank to request a remittance transfer. Your bank must provide a prepayment disclosure, and the rule specifies the information that must be included. Assuming your bank provides separate prepayment disclosures and receipts, which item is included in the prepayment disclosure?

A. Information about the sender’s rights to cancel the transaction
B. The balance remaining in the consumer’s account after the transfer
C. The amount of money that will be received by the designated recipient presented in the currency of the sender’s account
D. Transfer amount

Answer 60

D. Transfer amount

A is incorrect because this information is found on the receipt, not the prepayment disclosure. B is incorrect because this is not a required piece of information for the prepayment disclosure. C is incorrect because the amount of money received must be presented in the currency in which the recipient will receive the funds.

Question 61

Juaquin needs to send a remittance transfer from his prepaid Visa account to his sister in England. How would the bank determine if the transfer is a covered remittance under the rule?

A. The bank would use the location of the pooled account
B. The bank would use the location of the intermediary bank
C. The bank would use the location of the bank sending the remittance
D. The bank would use the location of the person sending the remittance

Answer 61

D. The bank would use the location of the person sending the remittance