Certified Regulatory Compliance Manager (CRCM) — Question 52

Which one of the following types of credit may be extended in Requirements case-12 CFR 221.3, 221.7:

Answer options

• A. Temporary advances in payment against delivery transactions
• B. Capital contribution leases
• C. Credit to clearing banking authorities
• D. Underwriter loans

Correct answer: A, D

Explanation

The correct answer includes 'Temporary advances in payment against delivery transactions' and 'Underwriter loans' as these fit within the requirements outlined in 12 CFR 221.3 and 221.7. The other options, such as 'Capital contribution leases' and 'Credit to clearing banking authorities', do not align with the specified credit types in the regulation.