Certified Regulatory Compliance Manager (CRCM) — Question 124

Which of the following does an extension of credit NOT include?

Answer options

• A. An advance by means of an overdraft or cash item
• B. The making or renewal of any loan or granting of a line of credit
• C. An advance against accrued salary
• D. An acquisition of a note on which an insider is a maker, drawer, or guarantor

Correct answer: C

Explanation

The correct answer is C because an advance against accrued salary is not typically classified as a credit extension, which usually involves loans or lines of credit. Options A, B, and D all represent forms of credit or financial assistance that involve lending or borrowing, thus qualifying as extensions of credit.