Free CRCM – Certified Regulatory Compliance Manager Practice Test Question

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  Appropriate recognition and financial reporting of income, expenses, assets, and liabilities

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  Appropriate treatment of losses associated with these products

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  Assessment of the adequacy of its internal controls and risk mitigation activities

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  Before entering into a contract, the bank must obtain the customer’s written affirmative election to enter into the contract and written acknowledgement of the receipt of the disclosures
  
  

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  Abusive lending usually is defined by a variety of lending practices

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  It is the excessive and hidden fees in the amount financed

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  A fundamental characteristic is aggressive marketing of credit to prospective borrowers who cannot repay it on the terms offered

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  Typically, such loans are underwritten on the liquidation value of the collateral rather than the creditworthiness of the borrower
  
  

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  The next clock hour that is after the hour the paying bank receives the item

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  9:30 A.M. Eastern time

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  Such other time as provided in the Reserve Bank’s operating circulars

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  Both A and B
  
  

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  Receiving bank authorizes the Reserve Bank to credit the receiving bank’s account

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  An off-line bank warrants to the Reserve Bank that it does not act as an intermediary bank or a beneficiary’s bank for payment orders received for a beneficiary that is a bank, unless the offline bank notifies the Reserve Bank in writing

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  A Reserve Bank has rights of a creditor to recover an overdraft, including the right of set off

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  Reserve Banks, when acting as beneficiary’s bank, payment order that identifies the beneficiary
  
  

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  Item provides that it must be presented for acceptance

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  Item is payable elsewhere than at the residence or business of the payor

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  Item sent directly to the paying bank or the nonbank payor

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  Date of payment of the item depends on presentment for acceptance
  
  

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  Any loss or expense resulting from sender’s lack of authority

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  Any action taken by the Reserve Bank within the scope of its authority in the handling of the item

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  An electronic item that is not a substitute check is not liable for any amount paid by a Reserve Bank that is attributable to the Reserve Bank’s own lack of good faith or failure to exercise ordinary care

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  Any warranty made by the Reserve Bank under Regulation J, Regulation CC, or the UCC
  
  

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  Loan and application files or other records related to a credit transaction and information derived from such files and records, even if it has been reorganized and summarized for analysis

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  If the bank takes any appropriate corrective action, the reports, results, analysis, opinions, and conclusions of the self-test will be protected by a privilege. The privilege will be lost if
  The information is voluntarily disclosed to the government

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  The public or is used in any manner as a defense to a discrimination charge

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  credit information is furnished in response to inquiries concerning an account reflecting the participation of consumer
  
  

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  Track regulatory proposals

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  Implementing final regulatory rules

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  Understanding the business units’ operating environment and risk tolerance

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  Ranking solutions as high, moderate and low risk
  
  

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  The consumer obtains financial services only in isolated transactions, such as using an ATM

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  The consumer’s loan is sold and servicing rights are retained

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  The consumer purchases airline tickets or travel insurance in an isolated transaction

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  The consumer is a beneficiary or grantor of a trust not administrated by the bank
  
  

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  Be clear and conspicuous

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  State that a privacy notice is available on request

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  Explain a reasonable means by which the consumer may obtain that notice Reasonable

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  May be disclosed to the affiliates
  
  

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  Applications must be signed to be valid.

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  Creditors may accept oral applications.

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  Creditors may not develop their own definition for a completed application.

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  A creditor is not required to attempt to complete incomplete applications.
  
  

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  Supported by a thorough review of pertinent statutes, decisional law, or an opinion of the state’s attorney general

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  Supported by a thorough review of pertinent statutes

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  Supported by decisional law

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  Supported by an opinion of the state’s attorney general
  
  

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  All except for Nationwide Foods, Inc.

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  All except for National Paper Products

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  All except for Century Enterprises

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  All except for Products Incorporated
  
  

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  If the cost of the gift is under $20.00, it is not reportable to the IRS.

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  The cost of the gift is credited to the customer's account as a bonus, increasing the account balance.

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  The fair market value of the gift is reported to the customer on the periodic statement.

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  The fair market value of the gift is added to the interest paid and reported on Form 1099-INT.
  
  

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  Point-of-sale transfers

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  Automated teller machine (ATM) transfers

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  Transfers initiated by Fax
  

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  Withdrawals of funds, including merchant transactions where no electronic terminal is involved, if the customer’s account is debited
  
  

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  The Reserve Bank has good title to the item

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  The item has not been altered
  

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  The item bears all endorsements applied by parties that have previously handled the item in paper or electronic form

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  All of these
  
  

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  Establish policies on the bank’s relationship with third-party brokers and originators

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  Review loan documentation

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  Audit the third-party broker

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  Require the broker to establish a reserve account for legal contingencies
  
  

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  Provide copies of the call reports covering the current and previous year

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  Provide a copy of its statement of condition covering the year immediately preceding the request

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  Provide a copy of its most recent, unaudited financial statement

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  Provide copies of its Uniform Bank Performance Reports for three consecutive years
  
  

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  First National Bank must confirm it if it previously agreed to do so.

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  Overseas, Inc., sends a telegram to First National Bank, a U.S. bank, stating the major terms and conditions of the letter of credit and asking First National Bank to confirm the letter of credit. The telegram does not state the boycott provisions. Overseas mails the letter of credit to First National Bank and asks First National Bank to confirm it. What may First National Bank do?
  First National Bank may advise ABC of the letter of credit and administer its disposal, but may not confirm it and must report it to the Department of Commerce and the IRS.

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  First National Bank may do nothing but return the letter of credit to the issuing bank and report to the IRS.

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  First National Bank must confirm the letter of credit but should also report it to the Department of Commerce.
  
  

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  Establish a task force to study the proposed rule.

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  Contact the bank’s platform software vendor to determine whether it will be ready for the change NOTES

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  Prepare a summary document that outlines the effects the proposed rule would have on the bank’s operations

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  Train bank staff on the new rule