American Bankers Association CRCM Exam Questions Instant Access

Question 1

Of the following actions, which one is NOT recommended by the OCC's advisory letter as a necessary tool of management oversight of insurance and annuity sales?

AHiring competent personnel

BEstablishing a separate insurance agency

CAuditing systems and controls

DRequiring a member of management to actively oversee this function

Answer : B

Question 2

A consumer reporting agency may furnish a consumer report

AIf not authorized in writing by the consumer

BIn response to a court order having jurisdiction or a subpoena issued by a federal grand jury or review or collection of an account of the consumer

CIn connection with a credit or insurance transaction

DFor employment purposes Before procuring a consumer report, an employer Must disclose to the individual in writing that a consumer report may be obtained Must obtain written authorization from the individual before procuring the report

Answer : B, C, D

Question 3

A bank does not know all of the specific information to be disclosed on the lease at the time of the consummation. What may the bank do after attempting to obtain the information?

AOmit the unknown disclosures

BEstimate the amounts and note that the information is estimated

CDelay consummation of the transaction until the information is ascertained

DEstimate the information based on averages of all other leasing transactions the bank has made within the last six months

Answer : B

Question 4

How may a bank limit the definition of executive officer?

ABy strictly defining, in writing, the duties and responsibilities of the officers to be excluded from the definition

BBy passing a board of directors resolution setting forth the bank's definition of an executive officer

CBy requiring that those officers to be excluded from the definition not attend loan committee meetings or loan review meetings

DBy limiting the amount of confidential information given to those officers to be excluded from the definition

Answer : B

Question 5

A bank may engage in voluntary self-testing and self-correction of its compliance with Regulation

B . 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

ALoan 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

BThe information is voluntarily disclosed to the government

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

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

Answer : B, C

Question 6

Under collateral requirements-12CFR 221.7, maximum loan value of margin stock is:

ACurrently 50 percent of the current market value

BCurrently 70 percent of the current market value

CSubject to change by the Federal Reserve

DSubject to change by the Equity Reserve

Answer : A, C

Question 7

In which of the following cases would First National Bank be required to give a branch closing notice?

ARemoving its ATM from the local grocery store

BOpening a deposit-taking facility in a kiosk during a college fair for one weekend

CMoving its central branch across the street

DClosing its near-town neighborhood branch

Answer : D

American Bankers Association Certified Regulatory Compliance Manager CRCM Exam Questions