American Bankers Association Exam CRCM Topic 7 Question 113 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 113
Topic #: 7

[All CRCM Questions]

When may a bank pay an overdraft of $5,000 created by an executive officer of the bank?

AWhen the officer is at the level of a vice president or lower.

BWhen the officer has previously signed an overdraft protection credit agreement in an amount sufficient to cover the overdraft.

CWhen the officer has enough funds in another account to cover the overdraft.

DWhen the bank pays the overdrafts for other good customers in the ordinary course of business.

Show Suggested Answer

Suggested Answer: B

by Mee at Jul 09, 2025, 06:53 AM

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Carin

3 days ago

I'd go with C. The officer should have enough funds in another account to cover the overdraft. Letting executives overdraw willy-nilly is a recipe for disaster!

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Dannette

11 days ago

Option B seems like the most reasonable choice. The bank should have a proper agreement in place to cover executive officer overdrafts.

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Evan

19 days ago

I think the bank can pay the overdraft if the officer has enough funds in another account.

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