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ABA CRCM Practice Test - Questions Answers, Page 3

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List of questions

Question 21

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Requirements---12 CFR 202.2, 202.4, 202.5, 202.6, and 202.13 say that a creditor may not request information about an application's race, color, religion, national origin, or gender except as specif

Question 22

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To be effective, compliance risk management professionals must design a framework to ensure that bank management understands the risks and the steps that must be taken to mitigate them. The many rol

Question 23

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They also embrace the concept of risk-based compliance management. They expect compliance management to be tailored to the bank, be it large or small, offering standard or specialty financial servic

Question 24

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A compliance professional's responsibilities include all of the following EXCEPT:

Question 25

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______________ should include basic elements designed to understand and mitigate risk. It usually includes: Written program Compliance-related policies and procedures

Question 26

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In a compliance program, tactical compliance procedures should be integrated into business line procedures, such as how to deliver an Adverse Action Notice when an application is declined. In this c

Question 27

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Which of the following should be done during research and interpreting regulations Compliance professionals in mitigating compliance risk?

Question 28

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

Question 29

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There is no established template for documenting compliance risk. Each institution should develop a risk assessment that fits its risk profile. The components that are commonly used throughout the i

Question 30

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

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 21

Requirements---12 CFR 202.2, 202.4, 202.5, 202.6, and 202.13 say that a creditor may not request information about an application's race, color, religion, national origin, or gender except as specifically permitted by ____________or another statute such as the Home Mortgage Disclosure Act.

Regulation B

Regulation U

Regulation Z

Regulation A

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Question 22

To be effective, compliance risk management professionals must design a framework to ensure that bank management understands the risks and the steps that must be taken to mitigate them. The many roles compliance professionals fill incorporate risk management aspects including:

Coordinating regulatory exams to explain risks to examiners

Overseeing compliance training targeting higher risk areas

Tracking regulatory proposals and final rules to understand new risks

All of these

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Question 23

They also embrace the concept of risk-based compliance management. They expect compliance management to be tailored to the bank, be it large or small, offering standard or specialty financial services, simple or complex products lines, and adjusted as appropriate for the customer base as that issued for the Bank Secrecy Act, also establishes their expectations that a bank's program be risk based. Who are they?

Outsourcing firms

Foreign financial service providers

Bank regulatory agencies

Risk management organizations

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Question 24

A compliance professional's responsibilities include all of the following EXCEPT:

Understanding the business units operating environment and risk tolerance

Performing risk assessments with the assistance of business units to determine current risk levels and risks associated with the bank's products, lines of business, customers, and locations, among other factors

Working with business units to ensure prompt corrective action for any detected errors

Assisting business lines with compliance training for employees, as needed

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Question 25

______________ should include basic elements designed to understand and mitigate risk. It usually includes:

Written program

Compliance-related policies and procedures

Tactical Compliance procedure

Rank solution

Compliance program

None of these

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Question 26

In a compliance program, tactical compliance procedures should be integrated into business line procedures, such as how to deliver an Adverse Action Notice when an application is declined. In this case:

Regulations should be applied consistently to procedures throughout the bank

Revisions to procedures should be based on compliance expertise and not mere editing

Providing solutions to mitigate any identified risk

Assisting business units in developing or revising policies and procedures to reflect current regulatory requirements

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Question 27

Which of the following should be done during research and interpreting regulations Compliance professionals in mitigating compliance risk?

Track regulatory proposals

Implementing final regulatory rules

Understanding the business units' operating environment and risk tolerance

Ranking solutions as high, moderate and low risk

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Question 28

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

Ongoing monitoring to evaluate the program, self monitoring and corrective action

Self monitoring

Periodic reviews

Ongoing monitoring to evaluate the program, self monitoring and periodic reviews

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Question 29

There is no established template for documenting compliance risk. Each institution should develop a risk assessment that fits its risk profile. The components that are commonly used throughout the industry are as follows EXCEPT:

Risk assessment

Measuring key risk indicators

Identifying key performance indicators

Training the leadership of compliance regulation program

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