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CRCM Exam - Question 61


The maximum amount of credit that a bank may extend to all of its insiders is known as the ______________and is equal to 100 percent of its unimpaired capital and surplus.

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Correct Answer: A

The maximum amount of credit that a bank may extend to all of its insiders is known as the aggregate lending limit. This limit is typically equal to 100 percent of the bank's unimpaired capital and surplus, as specified by regulatory guidelines.

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Cam22Option: A
Mar 15, 2024

The aggregate lending limit refers to the maximum amount of credit that a bank can extend to all of its insiders combined. This limit is typically set at 100 percent of the bank's unimpaired capital and surplus, as specified by regulatory guidelines.