Certified Regulatory Compliance Manager (CRCM) — Question 78

These are the definitions of _____________: The refusal to grant credit in substantially the amount or on substantially the terms requested in an application (and the applicant uses or expressly accepts the credit offered) A termination of the account or an unfavorable change in the terms of an account, unless the change affects substantially all of the lender's accounts of that type. A refusal to increase the amount of credit available to an applicant who has made an application for an increase

Answer options

• A. Adverse action-12 CFR 202.2(c)
• B. Special-purpose credit-12 CFR 202.8
• C. Refusals- 12 CFR 202.8
• D. security agreements-12 CFR 202.2(c)

Correct answer: A

Explanation

The correct answer is A, Adverse action-12 CFR 202.2(c), as it accurately describes the refusal of credit and unfavorable changes to account terms. Options B and C do not align with the definitions provided, as special-purpose credit refers to credit programs for specific purposes, and refusals are too broad without the context of adverse action. Option D, security agreements, pertains to collateral agreements, which is unrelated to the definitions given.