Certified Regulatory Compliance Manager (CRCM) — Question 125

Which of the following transactions is subject to the provisions of Regulation O?

Answer options

• A. Time deposit account held by a director
• B. Travel advance to an executive officer outstanding for less than 30 days
• C. Extension of credit to a director of an unaffiliated, competing, noncorrespondent bank
• D. Extension of credit to a member of the bank's board of directors

Correct answer: D

Explanation

The correct answer is D because Regulation O specifically governs extensions of credit to a bank's board members. Options A, B, and C do not fall under this regulation as they involve different types of financial transactions or parties that are not directly subject to Regulation O's provisions.