Regulation E

    graph TD;
	    A[User] -->|Uses| B[Debit Card];
	    A -->|Withdraws| C[ATM];
	    A -->|Deposits| D[Direct Deposit];
	    A -->|Makes Payment| E[Bill Payment Online];
	    B --> F[Merchant];
	    C --> F;
	    D --> G[Employer];
	    E --> H[Utility Company];

## What is the primary purpose of Regulation E? - [x] To protect consumers during electronic fund transfers - [ ] To promote high banking fees - [ ] To limit the number of transactions you can perform - [ ] To monitor all bank activities > **Explanation:** Regulation E is designed to protect consumers when they conduct electronic transactions, ensuring security and proper resolution in cases of fraud. ## Which of the following transactions is NOT covered by Regulation E? - [ ] ATM withdrawals - [ ] Online bill payments - [x] Writing a paper check - [ ] Debit card purchases > **Explanation:** Regulation E covers electronic transactions only; writing a paper check is still quite old-school! ## What is the maximum potential liability for an unauthorized transaction if reported promptly? - [x] $50 - [ ] $100 - [ ] $200 - [ ] Unlimited > **Explanation:** If you report an unauthorized transaction within two business days, your liability is capped at $50, courtesy of Regulation E. ## How long do you have to report errors on your electronic funds transfer? - [ ] 30 days - [x] 60 days - [ ] 90 days - [ ] No deadline > **Explanation:** You need to report errors related to electronic funds transfers to your bank within 60 days to ensure a rightful investigation. ## If someone unauthorized uses your debit card, what’s the first thing you should do? - [x] Report to your bank immediately - [ ] Call 9-1-1 - [ ] Change your password to "notmymoney" - [ ] Cry about it > **Explanation:** Reporting to the bank should be your top priority to mitigate any potential financial loss. ## What does EFTA stand for? - [ ] Electronic Fund Transfer Authentication - [ ] Electric Flying Transfer Aeronautics - [x] Electronic Fund Transfer Act - [ ] Every Function That Allows Transfers > **Explanation:** EFTA stands for the Electronic Fund Transfer Act, which provides the basis for Regulation E. ## Which type of information is NOT required to be disclosed under Regulation E? - [x] Your social security number - [ ] Terms and conditions of service - [ ] Fees for services - [ ] Error resolution procedures > **Explanation:** While important, your social security number is not something As banks disclose under Regulation E—keep that what-it-is safe! ## Regulation E provides protection against which type of fraudulent activity? - [ ] Friendly fire - [x] Unauthorized transactions - [ ] Overdrawing your account - [ ] Exceeding credit card limits > **Explanation:** Regulation E is focused on protecting consumers from fraudulent activities such as unauthorized transactions. ## What role does the Federal Reserve play concerning Regulation E? - [x] Enforces the regulation and provides consumer education - [ ] Manages the nation's gold reserves - [ ] Issues currency - [ ] Sets interest rates only for credit cards > **Explanation:** The Federal Reserve is responsible for enforcing Regulation E and ensuring consumers are aware of their rights. ## How should consumers respond to unexpected fees on ATMs? - [ ] Scream “Not my fault!” at the ATM - [x] Contact their bank for clarification - [ ] Change banks immediately - [ ] Ignore it and hope it goes away > **Explanation:** Consumers should contact their bank to understand and potentially dispute any unexpected fees rather than screaming futilely.