American Bankers Association Exam CRCM Topic 2 Question 68 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 68
Topic #: 2

[All CRCM Questions]

For a U.S. bank with domestic and foreign locations, which transaction does NOT require an information return to report the amount of interest paid?

AA loan made to James Roberts, a U.S. resident, payable at the bank's New York office, to purchase securities secured by the borrower's home in Mexico

BA loan made to Robert and Louise LeBlanc, who are resident aliens, payable at the bank's New York office, secured by a piece of real property located in Canada

CA loan made to Smith and Withers, a partnership formed for the practice of law, located in the United States, payable at the bank's New York office, guaranteed by Mr. Smith and Mr. Withers, and secured by the law firm's office building

DA loan made by Mrs. West, a U.S. citizen, to purchase a mobile home and the lot on which it will be placed; both the mobile home and lot are located in the United States

Show Suggested Answer

Suggested Answer: D

by Salome at Apr 01, 2023, 05:56 AM

Limited Time Offer

25%

Off

Get Premium CRCM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lenny

2 days ago

The question is asking about which transaction doesn't require an information return, so it seems like option D is the correct answer. A and B involve foreign locations, and C involves a partnership, so those would all require reporting.

upvoted 0 times

...