CRCM Online Practice Questions and Answers

In Compliance regulation and risk assessment key performance indicators usually include:

A. Fines or penalties

B. Customer complaints

C. Regulatory criticism from a regulator or internal or external auditors

D. None of these

In Consumer Leasing Act Content of non-segregated disclosures may be made separately or as part of another document (such as the lease agreement); however, other information cannot be stated, used, or placed so as to mislead or confuse the consumer. Other disclosures include all of the following EXCEPT:

A. A statement of the conditions under which the lessee or lessor may terminate the lease before the end of the lease term, along with the amount (or a description of the method of how the amount is determined) of any penalty or other charge for early termination

B. Whether the lessee has the option to purchase the leased property during the lease term and, if applicable, the purchase price (or method for determining it) and when the lessee may exercise it

C. The lessee's right to an independent appraisal of the property if the lessee's liability at the end of the lease is based on the realized value of the leased property, and that the appraisal will be binding on all parties

D. A statement of maintenance responsibilities including the counter bank responsible and a description of the responsibility

Purpose credit is credit for all of the following EXCEPT:

A. Immediate purpose of purchasing or carrying margin stock

B. Incidental purpose of purchasing or carrying margin stock

C. Ultimate purpose of purchasing or carrying margin stock

D. Accidental purpose of purchasing or carrying margin stock

For purposes of insider lending laws and regulations, what is the definition of the term executive officer?

A. All bank officers at or above the level of executive vice president

B. Anyone who has the authority to participate in major policymaking functions at the bank NOTES

C. Anyone who has the authority to participate in lending decisions at the bank

D. All bank officers at or above the level of assistant vice president

On March 1, First National Bank opened three accounts:

1) a savings account for Margaret Nelson, who did not have a TIN but signed a certification that she had applied for one;

2) a money market savings account for Linda Miller, who could not remember her TIN but promised to provide it at the earliest possible date; and

3) a certificate of deposit for John Whiteside, who completed a Form W-9 but provided a TIN with only eight numbers. Ms. Nelson provided her newly acquired TIN to the bank on April 15, Ms. Miller provided her TIN on April 5, and Mr.

Whiteside provided his TIN to the bank on March 10. Interest was paid on all of these accounts on March 31, and the bank withheld 28 percent of the interest payments. On April 20 all the payees requested that the withheld interest be

refunded.

What should the bank do?

A. Refund the withheld interest to all payees

B. Refund to Ms. Nelson and Mr. Whiteside because the interest was erroneously withheld

C. Refund only to Mr. Whiteside because the interest was erroneously withheld

D. Refund only to Ms. Nelson because the interest was erroneously withheld

Which of the following institutions could be examined for CRA under the small intermediate bank performance standard?

A. Bank A, a $230 million bank

B. Bank B, a $700 million bank

C. Bank C, a $50 million bank

D. Bank D, a $2 billion bank

When is it possible for a bank to be exempted from compliance with some of the Government Securities Act custodial regulations?

A. When the bank maintains its securities in the ordinary course of business

B. When the bank has procedures in place to make sure it complies with the custodial regulations of its federal regulatory agency

C. When the bank does not hold itself out as a government securities broker or dealer

D. When the bank uses more than the normal standard of care when maintaining possession and control of securities

Mammoth Enterprises is a new customer to the bank. It is a wholly owned subsidiary of Mammoth Corporation. Which of the following statements, if true, would make Mammoth Enterprises an exempt customer at the bank?

A. Mammoth Corporation is a London corporation, trading on the London Stock Exchange.

B. Mammoth Corporation is a U.S. corporation with unlisted stock.

C. Mammoth Corporation is a U.S. corporation trading on the American Stock Exchange.

D. Mammoth Enterprises is a U.S. corporation primarily in the investment banking business.

Harvey Smith is a loan officer at First National Bank. Which of the following of Harvey's outside business interests may be considered to be a conflict of interest that should be disclosed to the bank?

A. His ownership of 4,000 shares of stock in a local car dealership (the car dealership is not a bank customer)

B. His wife's position as chair of the board of a local bank

C. His attendance at a party hosted by one of his customers where other financial institutions were represented

D. His role as honorary chair of a fund drive for a local charitable organization

For which of the following business activities must a bank holding company obtain prior approval of the Federal Reserve Board?

A. Operating an auto club service

B. Serving as a safe deposit company

C. Operating as a management consulting firm for financial institutions

D. Selling installment loan data processing