Reg CC Exam Questions & Answers 2024/2025
1. Which of the following accounts is considered to be a new account for delayed funds availability purposes?
A. A new account opened by an established customer who has had several transaction accounts with the bank for a long time
B. A new account...
1. Which of the following accounts is considered to be a new account for delayed funds availability
purposes?
A. A new account opened by an established customer who has had several transaction accounts with
the bank for a long time
B. A new account opened by a customer who previously had an account but closed it 15 days before
opening the new one
C. A new account opened by a customer who has had a regular savings account at the bank for five
years
D. A new account opened by a customer who is a joint account holder on another checking account at
the bank but who has no other individual account - ANSWERSC. A new account opened by a customer
who has had a regular savings account at the bank for five years
A savings account is not a transaction account and therefore is not an account according to the definition
given in Regulation CC. Therefore, the customer has not had an account at the bank at the time the new
account was opened, so the new account exception applies.
2. The following deposits were made on Monday at First National Bank:
• Martha Smith, a new customer, deposited $150 in checks into her checking account, which she had
opened the previous week
• Jerry Williams, an established customer, deposited a $7,000 check from his father
• Amanda Thomas, also an established customer, deposited her $600 IRS refund into her account
What funds must be made available to these depositors on Tuesday?
A. $200 for each
B. $200 for Martha and Jerry; $600 for Amanda
C. $200 for Jerry; $600 for Amanda
D. $200 for Martha; $600 for Amanda - ANSWERSC. $200 for Jerry; $600 for Amanda
, Jerry's deposit is a check that does not have to be available the next day, with the exception of $200.
Because Amanda's check is on the U.S. Treasury, her entire deposit is available the next day. Martha's
account is a new account; therefore, none of her deposit is required to be made available on the next
business day.
3. First National has an account for Mary Jones, who has had several overdrafts in her account over the
past few months. On February 15, she overdrew her account and had a negative balance, which lasted
for 10 days. As of March 14, the number of negative days in the statement cycle was three; and as of
April 14, the number of days was six. The last overdraft occurred on May 14, and the account was
overdrawn for three days. Mary has not been overdrawn since May. First National has extended the
holds placed on all deposits to her account. How long can the bank continue to subject her account to
extended hold periods?
A. Until May 14
B. Until October 14
C. Until July 14
D. Until April 14 of the next year - ANSWERSB. Until October 14
The bank can apply the extended hold because the depositor has been overdrawn for at least six days
during the preceding six months. The six days is a running total. Basically, from any day in the year the
bank should count back six months to determine if the number of overdrafts within that time period
equals six or more. In this situation the six months begins to run from the April 14 date (the last date as
of which the account has actually been overdrawn for six days). If Mary's account has no more
overdrafts, by October 14 it will no longer meet the criterion of having been overdrawn for six days
during the previous six months—so the hold will have to be lifted.
4. A $7,000 check is presented to First National Bank, as the paying bank on Monday. First National is
going to return the check to the depositary bank.
Generally, First National mails return checks to the Federal Reserve Bank and mails its forward collection
checks as well to avoid the costs of a courier. Other banks in the community send both return and
forward collection checks to the Federal Reserve Bank by courier if the checks are over $5,000. Can First
National follow its usual procedure in this case?
A. Yes. Provided the bank is consistent in its method of return, it does not have to use the most
expeditious method.
B. Yes. Provided the bank uses the mail for forward collection, it can use the mail for returns.
C. No. The bank must use the method used by banks in similar circumstances.
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