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ABA CRCM Practice Test - Questions Answers, Page 14

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List of questions

Question 131

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First National Bank would like to adopt a recordkeeping system that complies with the requirements of Regulation O. Which of the following best describes the recordkeeping system required by Regulat

Question 132

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Which of the following does an extension of credit NOT include?

Question 133

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Which of the following transactions is subject to the provisions of Regulation O?

Question 134

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In a review of a bank's compliance with the Regulation O overdraft provisions, what should the compliance officer do?

Question 135

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Safe National Bank has a variety of consumer lending products. Among them are debt cancellation contracts that allow for the cancellation of a consumer's debt if certain events happen. The bank soli

Question 136

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ACME National Bank has a Web site that lists the bank's products and services. On its consumer loan page it lists debt cancellation contracts as an available product. What other disclosure must the

Question 137

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ACME National bank uses telephone solicitations to sell its debt cancellation contracts. The banker explains to the borrower the nature of the contract, gives an oral short form disclosure, receives

Question 138

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Which of the following actions is NOT an adverse action?

Question 139

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Which of the following statements regarding applications is correct?

Question 140

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Which of the following is/are included in the persons covered under Fedwire transfer coverage?

Related questions

Which of the following customers may be exempted under Phase II of the Bank Secrecy Act?

Martha Whitmire, the BSA Compliance Officer for First National Bank, is responsible for monitoring the bank's daily currency activity and wire transfers, for compliance with information retention and reporting requirements. Ms. Whitmire notices during her review on March 10 that, during the previous two weeks, a transaction occurred on the same account several times during the week. The activity appeared at one branch office as cash deposits in dollar amounts under the reporting thresholds. Ms. Whitmire discusses this activity with the branch manager and determines that this same deposit activity occurred several times during the previous six weeks. She then conducts a more extensive examination of the account's activity for several months and discovers that cash deposits were made at one branch office and purchases of bank cashiers checks were made by withdrawals from the same account at a different branch office. All withdrawals and purchases of cashier's checks were for the identical amount as the cash deposits.Which statement best describes Ms. Whitmire's responsibility?

Fastfood, InC. , a nationwide restaurant chain, opened an account at First National Bank last year. Fastfood is making daily deposits in amounts of $15,000 to $20,000. First National needs to determine if this company is an exempt person. What should the bank do first?

Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:

Bob's wife is HIV-positive due to a blood transfusion during an appendectomy 15 years ago. She is not yet sick, but takes medication to prevent the onset of AIDS. Bob occasionally needs to take time off from work to take her for testing at Johns Hopkins in Baltimore. Because of complaints about Bob's exposure to this disease, employees have asked HR to limit his contact with them and with customers. The bank has asked Bob not to eat in the lunchroom with the other employees and has placed Bob in a position where he has limited customer contact. Does this company have any potential ADA liability?

In April Lillian Redmond, the teller supervisor for First National Bank, discovers five counterfeit $20 bills in several teller drawers. In May and in June she discovers two additional counterfeit $20 bills. She has no knowledge of criminal activity on the part of any of the bank's employees or customers. She does not suspect any particular person in this transaction. Which of the following statements is true?

A financial institution may provide a customer with a short form initial notice at the same time as it delivers an opt-notice. The short form notice must:

What insurance disclosures are required in the lease disclosure statement?

The compliance program should address plans to verify adherence to applicable regulations through:

A compliance officer receives a call from a loan officer who asks for adv ice on what she should do with a stock certificate (1,437 shares of IBM) from a new loan customer who wants to pledge it in support of a loan that has been approved at your bank. What should the compliance officer tell her FIRST?

Question 131

First National Bank would like to adopt a recordkeeping system that complies with the requirements of Regulation O. Which of the following best describes the recordkeeping system required by Regulation O?

A system in which the bank annually surveys all executive officers of First National and its affiliates to determine the insiders' related interests

A system in which the bank asks all borrowers as loans are made whether the borrower is a related interest of an insider

A system that surveys insiders of First National annually and requires each insider to disclose his or her related interests

A system that requires an annual survey of affiliate insiders

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Question 132

Which of the following does an extension of credit NOT include?

An advance by means of an overdraft or cash item

The making or renewal of any loan or granting of a line of credit

An advance against accrued salary

An acquisition of a note on which an insider is a maker, drawer, or guarantor

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Question 133

Which of the following transactions is subject to the provisions of Regulation O?

Time deposit account held by a director

Travel advance to an executive officer outstanding for less than 30 days

Extension of credit to a director of an unaffiliated, competing, noncorrespondent bank

Extension of credit to a member of the bank's board of directors

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Question 134

In a review of a bank's compliance with the Regulation O overdraft provisions, what should the compliance officer do?

Identify the related interests of all directors, executive officers, and principal shareholders

Examine the bank's overdraft reports for a selected time period

Examine the annual FFIEC-004 reports on indebtedness to correspondent banks

Examine the bank's latest report of condition and income

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Question 135

Safe National Bank has a variety of consumer lending products. Among them are debt cancellation contracts that allow for the cancellation of a consumer's debt if certain events happen. The bank solicits sales for these contracts when the consumer makes an in-person loan application. What does Safe National have to do at the time of the application and solicitation?

Nothing. Disclosures are required only when the contract is made.

Give the customer the short-form disclosures orally.

Give the customer the short-form disclosures in writing.

Give the customer the long-form disclosures.

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Question 136

ACME National Bank has a Web site that lists the bank's products and services. On its consumer loan page it lists debt cancellation contracts as an available product. What other disclosure must the bank place on this Web page?

None. Because it only lists the product, nothing else is required.

The short-form disclosures must be on the page.

The short-form disclosures must be available by a conspicuous link on the page.

The long-form disclosures must be on the page.

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Question 137

ACME National bank uses telephone solicitations to sell its debt cancellation contracts. The banker explains to the borrower the nature of the contract, gives an oral short form disclosure, receives the customer's affirmative election orally, and sends the written long form disclosures and written affirmative election within three business days. Is the bank in compliance with the telephone solicitation rules as they apply to affirmative elections?

Yes, the bank has fulfilled all of its requirements.

No, oral affirmative elections are not acceptable.

No, the bank also must give the customer 30 days to cancel the contract.

No, telephone solicitations are not allowed for debt cancellation contracts.

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