American Bankers Association CRCM Exam Questions Instant Access

Question 1

Credit scoring systems:

AEvaluate an applicant's creditworthiness mechanically, based on key attributes of the applicant and aspects of the transaction, and determine, alone or in conjunction with an evaluation of additional information about the applicant, whether an applicant is deemed creditworthy

BAre evaluated by regulatory agencies to determine whether they are empirically derived and statistically sound and to examine:
The bank's policies on the use of the credit scoring system
Training of bank employees on the use of the system
The number of high-side and low-side overrides of the system

CBoth of these

DNone of these

Answer : C

Question 2

Which of the following advertising activities indicate that a bank would NOT be exempt from SEC registration requirements?

AListing its securities transfer services as a service the bank provides for IRA accounts along with other IRA benefits

BListing its securities services for trust accounts in the bank's extensive trust services brochure

CMentioning in a print advertisement that the bank provides accommodation securities trades for its regular custodial accounts

DStating in an advertisement concerning employee benefit plan services that the bank provides securities brokerage services for employee benefit plan accounts

Answer : C

Question 3

Which of the following is NOT a requirement when a bank pays an employee a fee for referring a high-net-worth or institutional customer to a broker?

AThe bank must have a written agreement with the broker

BThe bank must give a disclosure to the customer

CThe bank must reasonably believe that the customer is a high net worth or institutional customer

DThe employee must be registered with the bank's regulatory agency

Answer : D

Question 4

Which of the following is NOT a corporate practice required of bank holding companies?

AEach bank subsidiary must file a notice with the Federal Reserve before offering a new product.

BEach bank subsidiary must conduct its operations in a safe and sound manner.

CEach bank subsidiary must be insured by the FDIC.

DEach bank subsidiary must file a notice with the Federal Reserve before purchasing any of its own securities.

Answer : A

Question 5

Robin Martin made an individual application to the bank for a car loan. She has just returned to work on a regular basis because she was a full-time homemaker until recently, when her last child entered school. The loan officer would like to ask her about her husbanD. Under what circumstances can the officer ask Robin about her husband?

AThe creditor believes the spouse's signature will make the applicant more
creditworthy.

BThe applicant is married.

CThe applicant resides in a community property state.

DThe applicant's credit reports indicate that the spouse is a better credit risk.

Answer : C

Question 6

Debt Cancellation Contracts and Debt Suspension Agreements coverage includes:

ANational banks that issue debt cancellation contracts and debt suspension agreements with borrowers in connection with loans for personal, family, or household purposes

BA national bank may not engage in any practice, including advertising, which would cause a reasonable person to be misled with respect to DSAs and DCCs

CA bank must provide the long-form disclosures in writing before the customer completes the purchase of a contract. If the solicitation occurs in person, the long-form disclosures must be provided at that time

DA bank must make the short-form disclosures orally at the time the bank first solicits the contract

Answer : A

Question 7

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

American Bankers Association Certified Regulatory Compliance Manager CRCM Exam Questions