Certified Regulatory Compliance Manager (CRCM) — Question 177

Which of the following primary purpose/s were behind the Electronic Fund Transfer Act (EFTA)?

Answer options

• A. To provide disclosures to consumers who use electronic fund transfer (EFT) systems
• B. To provide consumers with limitations on liability for unauthorized electronic fund transfers
• C. Both A and B
• D. None of these

Correct answer: C

Explanation

The correct answer is C because the EFTA aims to ensure consumers receive necessary disclosures about electronic fund transfers and establishes limits on their liability in cases of unauthorized transactions. Options A and B are correct individually, but since both objectives are part of the EFTA, C is the most comprehensive answer. Option D is incorrect as it contradicts the established purposes of the EFTA.