Regulation E (Electronic Funds Transfers Act) Exam
Thanks to technology, the banking systems have been advanced to allow transactions across different accounts electronically. The quiz below focuses and tests your knowledge on electronic funds transfers. Find out what you know below. All the best.
- 1.Why is Regulation E important?
- A.
It provides the consumer with the opportunity to minimize their exposure to unauthorized electronic fund transfers.
- B.
It requires financial institutions to notify consumer consumers of their rights and responsibilities in connection with electronic fund transfers.
- C.
It provides a procedure for dealing with any EFT error on a consumer deposit account.
- D.
All of the above.
- 2.Regulation E applies to any electronic fund transfer that authorizes a financial institution to debit or credit a consumer's deposit account and includes:
- A.
Point-of-sale transfers
- B.
Automated teller machine transfers
- C.
Direct deposits or withdrawals of funds
- D.
Automated transfers initiated by telephone - non-operator assisted
- E.
All of the above
- 3.When consumers notice an error on their statement, under Regulation E, what is the maximum number of days the consumer has to report the error to the bank to minimize future liability under Regulation E (excluding extenuating circumstances)?
- A.
30 days from the transmittal date of the statement on which the error appeared
- B.
45 days from the transmittal date of the statement on which the error appeared
- C.
60 days from the transmittal date of the statement on which the error appeared
- D.
None of the above
- 4.What must a financial institution do within 10 business days from receiving a notification of error from the consumer?
- A.
Resolve the error or provisionally credit the consumer.
- B.
Nothing; the financial institution has 45 calendar days to complete investigation.
- C.
Debit provisional credit from the consumer's account. Call the consumer and ask for more time to investigate error.
- D.
None of the above.
- 5.A consumer may stop payment on a preauthorized electronic fund transfer by notifying the financial institution orally or in writing.
- A.
True
- B.
False
- 6.The primary objective of Regulation E is to protect individual consumers who engage in electronic fund transfers.
- A.
True
- B.
False
- 7.Which one do you like?
- A.
Option 1
- B.
Option 2
- C.
Option 3
- D.
Option 4
- 8.A consumer's request for required documentation or for additional information or clarification concerning an electronic fund transfer requires a financial institution to begin error resolution procedures.
- A.
True
- B.
False
- 9.Which of the following is not an Electronic Fund Transfer (EFT) transaction?
- A.
Placing a stop payment on a check
- B.
Direct deposit
- C.
Point-of-sale transaction
- D.
ATM transfer
- 10.If a customer is unhappy with a service, but authorized the EFT, the transaction is still considered an error under Regulation E
- A.
True
- B.
False
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