Which of the Following Is True Regarding Extensions of Credit

question 72

Multiple Choice

Which of the following is true regarding extensions of credit to executive officers, directors, and principal shareholders?

• A) Must be approved in advance by the board of directors if the aggregate credit is more than the greater of either $25,000 or 5 percent of the bank's capital and surplus, not exceeding $500,000
• B) Must be approved in advance by the board of directors if the credit is greater than $50,000 or 5 percent of the bank's capital and surplus
• C) May not exceed $100,000 in the aggregate, regardless of approvals
• D) May not exceed $250,000 in the aggregate, regardless of approvals

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Definitions:

Rubella

A contagious viral infection, also known as German measles, typically characterized by a red rash, fever, and swollen lymph nodes.

Healthcare Facility

An establishment that offers preventive, curative, promotional, or rehabilitative health care services in a systematic way to individuals, families, or communities.

Infection

The entry and rapid increase of external microorganisms including bacteria, viruses, and parasites into the body, where they are not usually found.

National Notifiable Disease

Diseases that are required by law to be reported to government authorities upon diagnosis, intended to assist in monitoring and controlling the spread of the disease.