Which of the Following Is True with Regard to the Federal

question 14

Multiple Choice

Which of the following is true with regard to the federal Electronic Funds Transfer Act?

• A) It gives the same protections to customers that are found in Article 4.
• B) It limits a customer's liability for unauthorized transfers to $50 if the consumer notifies the financial institution within two days after learning of the loss or theft.
• C) It is primarily a regulatory statute.
• D) All of these.

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Definitions:

Hedge

Investment protection method utilized to reduce the potential for financial loss by offsetting price movements in a related asset.

Futures Contracts

Futures Contracts are legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future, widely used for hedging and speculative purposes.

Bushels

A unit of volume that is commonly used in agriculture, especially for measuring grains.

Interest Rates

The proportion of a loan or savings amount that is charged as interest to the borrower, typically expressed as an annual percentage.