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ABA CRCM Practice Test - Questions Answers, Page 2

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Question 11

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Which of the following credit arrangements would most likely be considered a purpose credit because it is indirectly secured by margin stock?

Question 12

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Under Regulation U, prior to extending credit secured by margin stock for more than $100,000, a national bank must obtain which of the following?

Question 13

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This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer's loan obligation on the occurrence of a specified event. It May be a p

Question 14

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Under content of disclosures long term disclosures may include the following, as applicable EXCLUDING:

Question 15

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

Question 16

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The Equal Credit Opportunity Act (ECOA) was enacted in 1974 to prevent discrimination in credit transactions. In 1975 the act was amended. Which of the following prohibited base/s are now included i

Question 17

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Securities credit covers credit subject to Section 7 of the Securities Exchange Act of 1934 or credit by a broker or dealer subject to regulation under the act. The following requirements of Regulat

Question 18

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Government credit:

Question 19

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An oral or written request for credit made in accordance with the creditor's procedures for the type of credit requested. Information entered into and retained by a computer system qualifies as a wr

Question 20

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Definition of completed application---12 CFR 202.2(f) is:

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?

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?

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?

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:

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

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?

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to cancel all or part of a customer's loan obligation on the occurrence of a specified event. It may be included as a part of the loan documents, or it may be a separate agreement. What is it?

Question 11

Which of the following credit arrangements would most likely be considered a purpose credit because it is indirectly secured by margin stock?

A loan made to purchase margin stock secured by nonmargin stock

A loan made to a company for various corporate purposes, including the purchase of margin stock, secured by the corporate assets, which from time to time include margin stock; on the date of the consummation of the transaction approximately 10 percent of the assets of the company are margin stock

A loan made to purchase margin stock, guaranteed by an individual who has pledged margin stock as security for the guarantee

Bank is the trustee for a qualified pension plan from which the participants may borrow and use their interest in the plan as security; a participant borrows money for the purpose of purchasing margin stock

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Question 12

Under Regulation U, prior to extending credit secured by margin stock for more than $100,000, a national bank must obtain which of the following?

Certificate of value for the collateral

Written statement from the borrower as to the purpose of the loan

Written statement certifying the borrower's business address and daytime phone number

Notice from the borrower as to his willingness to provide additional margin stock as collateral

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Question 13

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer's loan obligation on the occurrence of a specified event. It May be a part of the loan itself or a separate agreement.Does not include a loan payment deferral arrangement where the borrower or the bank can unilaterally defer a payment.What is it?

Debt suspension agreement (DSA)

Anti-dying

Debt cancellation contract (DCC)

ALLL

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Question 14

Under content of disclosures long term disclosures may include the following, as applicable EXCLUDING:

Notification that the product is optional

Explanation of debt-suspension agreement

Lump-sum payment of fee with no refund

Refund of fee paid in lump sum

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Question 15

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

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

Appropriate treatment of losses associated with these products

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

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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Question 16

The Equal Credit Opportunity Act (ECOA) was enacted in 1974 to prevent discrimination in credit transactions. In 1975 the act was amended. Which of the following prohibited base/s are now included in it?

National origin

Exercise of rights under the Consumer Credit Protection Act

Receipt of public assistance income

All of these

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Question 17

Securities credit covers credit subject to Section 7 of the Securities Exchange Act of 1934 or credit by a broker or dealer subject to regulation under the act. The following requirements of Regulation B do not apply EXCEPT:

Restrictions regarding information about a spouse or former spouse, marital status, or sex of the applicant

It is not payable by agreement in more than four installments

Provisions relating to furnishing credit information

Records retention requirements

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Question 18

Government credit:

It is credit extended to governments or government agencies, instrumentalities, or subdivisions

It has no finance charge

It has Records retention requirements

Only the general rule against discrimination applies to government credit

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Question 19

An oral or written request for credit made in accordance with the creditor's procedures for the type of credit requested. Information entered into and retained by a computer system qualifies as a written application. It is called:

Credit Application

Credit completed application

Initial credit approach

None of these

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Question 20

Definition of completed application---12 CFR 202.2(f) is:

An application for which the bank has received all the information it regularly considers in evaluation, including credit reports, verifications, and so forth

The creditor must be reasonably diligent in collecting information to complete the application (for example, ordering credit bureau reports)

An inquiry becomes an application when the creditor evaluates information and decides to grant or decline the credit

Requests for written preapprovals to be issued by the lender are considered applications

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Total 463 questions

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