American Bankers Association Exam CRCM Topic 9 Question 100 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 100
Topic #: 9

[All CRCM Questions]

First National Bank has an employee benefit program whereby all bank employees who meet the bank's credit underwriting standards may obtain consumer loans for major purchases or expenses at a rate that is less than the bank's prime rate. Can the bank allow its executive officers to borrow under this program?

ANo. Executive officers may not have preferential interest rates under any circumstances.

BNo. However, the related interests of the executive officers may take advantage of it.

CYes. However, executive officers must secure their loans with collateral valued at 100 percent of the loan balance or more.

DYes. Provided the program is available to everyone at the bank as an employee benefit, executive officers may also participate.

Show Suggested Answer

Suggested Answer: D

by Melissa at Sep 14, 2024, 06:28 AM

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Ammie

21 hours ago

This is a classic case of 'the rules don't apply to me' mentality. I bet the executives are trying to find a loophole to get a better deal. Not on my watch!

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An

3 days ago

Collateral? Really? That seems like overkill. As long as the executives are meeting the same credit standards as everyone else, they should be able to get the same rate, no questions asked.

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Cheryl

5 days ago

Hold on, I think the key here is that the program has to be available to everyone at the bank. If that's the case, then the executives should be able to take advantage of it too.

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Sherita

8 days ago

But what if the program is available to everyone at the bank? Shouldn't the executives be able to participate as well?

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Vinnie

9 days ago

Hmm, this is a tricky one. I'm pretty sure the bank can't give its executives any special treatment, even if it's part of an employee benefit program.

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Tyisha

12 days ago

I agree with Theresia. It wouldn't be fair to other employees if the executives get special treatment.

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Theresia

18 days ago

I think the bank should not allow executive officers to borrow at a preferential rate.

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