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ABA CRCM Practice Test - Questions Answers, Page 28

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List of questions

Question 271

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First National Bank owns a data processing company that sells financially related data processing services to various businesses in the community. Daniel Tyler, a loan officer, is negotiating a loan

Question 272

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Mills Company, Inc., is a manufacturing company with a working capital line of credit from First National Bank. The credit agreement governing the loan states that Mills cannot obtain additional uns

Question 273

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Which of the following would NOT be acceptable under the Bank Bribery Act and the relevant guidelines?

Question 274

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Which of the following is NOT a written record the bank should retain in complying with the Bank Bribery Act?

Question 275

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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 ba

Question 276

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Martin Taylor, a loan officer at First National Bank, is a long-time friend of Bill Evans, a local homebuilder. Bill would like a line of credit at the bank and discusses the potential loan with Mar

Question 277

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Which of the following factors would NOT be considered when evaluating whether specific behavior by a banker violates the statute?

Question 278

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When does a gift accepted by a banker clearly violate the Bank Bribery Act?

Question 279

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Which of the following transactions does NOT require prior approval of the Federal Reserve Board?

Question 280

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First National Bancshares, Inc., a bank holding company, filed an application with its Federal Reserve Bank on March 1 to acquire a subsidiary bank. On March 15 the Federal Reserve Board asked First

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:

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?

Which of the following is NOT a factor considered by the Federal Reserve Board when it evaluates an application under Regulation Y?

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:

The following mentioned points are actually _______________. * Reserve Banks may rely on numbers given in a payment order to identify an intermediary or beneficiary bank * Reserve Banks, when acting as beneficiary's bank, may rely on the number in the payment order that identifies the beneficiary

Question 271

First National Bank owns a data processing company that sells financially related data processing services to various businesses in the community. Daniel Tyler, a loan officer, is negotiating a loan to a local CPA firm. He would like to make the loan conditional on the CPA firm's use of the subsidiary data processing firm.May he do so?

Yes, because it is not a bank service.

Yes, because it is not related to pricing.

No. It is an illegal tie-in.

No, unless the company was planning to obtain a new data processing service provider anyway.

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Question 272

Mills Company, Inc., is a manufacturing company with a working capital line of credit from First National Bank. The credit agreement governing the loan states that Mills cannot obtain additional unsecured credit without the approval of the bank. Mills believes that such a clause violates the Bank Holding Company Act's anti-tying clause. Does it?

Yes. It is a restraint of trade.

Yes, unless the bank will reasonably allow additional credit at Mills's request.

No, since this clause relates to the soundness of the credit

No, unless the bank refuses to grant additional credit to Mills itself

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Question 273

Which of the following would NOT be acceptable under the Bank Bribery Act and the relevant guidelines?

A luncheon paid for by a bank customer after a transaction is closed

A gift of a hunting rifle to a loan officer from a borrower at Christmas

The gift of a gold watch to a loan officer from a customer who is the loan NOTES officer's cousin

An award of a writing pen and pencil set to a bank officer by a civic organization

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Question 274

Which of the following is NOT a written record the bank should retain in complying with the Bank Bribery Act?

A copy of the bank's internal code of conduct

A list of all gifts received by bank officers during the year

Disclosures of unauthorized gifts

A list of all bank officers' outside business interests

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Question 275

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?

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

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

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

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

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Question 276

Martin Taylor, a loan officer at First National Bank, is a long-time friend of Bill Evans, a local homebuilder. Bill would like a line of credit at the bank and discusses the potential loan with Martin. During the discussion, Martin expresses his desire to build a house one day and Bill offers to build him one ''at cost plus 5 percent.'' If Martin accepts Bill's offer, can he continue to act as his loan officer?

No. The value of the gift is too great.

Yes, if Martin discloses this fact to the bank.

Yes, if Martin does not let the discount on the house affect his decision making process.

Yes, if the bank's code of conduct allows such activity.

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Question 277

Which of the following factors would NOT be considered when evaluating whether specific behavior by a banker violates the statute?

The social and family ties of the banker

The standard for business amenities and entertaining in that particular part of the country

Whether there was a demonstrable business purpose

Whether a business transaction was consummated as a result

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Question 278

When does a gift accepted by a banker clearly violate the Bank Bribery Act?

When it is given for personal reasons

When it is given with corrupt intent

When it is valued at a dollar amount exceeding $50

When it is not given in connection with a generally accepted holiday

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Question 279

Which of the following transactions does NOT require prior approval of the Federal Reserve Board?

The formation of a bank holding company

The acquisition by a bank holding company of a subsidiary

The acquisition of 25 percent of voting stock of a bank by another bank, in good faith, in its fiduciary capacity with no power to vote

The acquisition of 25 percent of voting stock of a bank by another bank in its fiduciary capacity for the benefit of the acquiring bank's employees

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Question 280

First National Bancshares, Inc., a bank holding company, filed an application with its Federal Reserve Bank on March 1 to acquire a subsidiary bank. On March 15 the Federal Reserve Board asked First National for more information. On April 1 the Federal Reserve Bank received the completed application and accepted it. On April 5 the Federal Reserve Bank notified First National of the April 1 acceptance and referred the application to the Federal Reserve BoarD. Under the normal rules, by what date must the Federal Reserve Board act on the application?

June 1

April 30

June 5

July 1

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Total 463 questions

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