Which of the Following Describes the Record Retention Requirements Under

question 106

Multiple Choice

Which of the following describes the record retention requirements under Regulation B for a credit application from a business with annual gross revenues in excess of$1,000,000?

• A) The bank must retain records for 30 days; however, if a written statement of action is requested, the bank must retain the records for 90 days.
• B) After 6 months, the bank must dispose of the applications and records in accordance with waste disposal rules promulgated by the EPA.
• C) The bank must retain records for 12 months if a written statement of adverse action is requested within 60 days after notifying the applicant of the action taken.
• D) The bank must retain records for 25 months from the date of application.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, a key indicator of a company's profitability.

Interest Expense

The financial cost experienced by an entity over a duration for utilizing borrowed money.

Sources And Uses Of Cash

A financial statement that summarizes where a business obtained its money (sources) and how it spent it (uses).

Predicting Cash Flows

The process of estimating the amount of money that will move in and out of a business in a future period.