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ABA CRCM Practice Test - Questions Answers, Page 32

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List of questions

Question 311

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For a U.S. bank with domestic and foreign locations, which transaction does NOT require an information return to report the amount of interest paid?

Question 312

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By which date must an interest reporting statement be sent to the borrower's last known address?

Question 313

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On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

Question 314

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First National Bank has foreclosed on several loans. One of the loans is not subject to the requirement to submit an information return on the foreclosed property. Which loan is most likely NOT cove

Question 315

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First National Bank made a loan to Lawrence & Co. for the purpose of purchasing landscape equipment, secured by a storage lot the company owneD. The borrower made payments for a year and then de

Question 316

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Which of the following pieces of information is the bank NOT required to report on Form 1099 for foreclosed and abandoned property?

Question 317

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By what date must the bank send the borrower a statement in connection with an information return on foreclosed or abandoned property?

Question 318

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Which account is NOT subject to backup withholding?

Question 319

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Walter Johnson has two accounts at First National Bank. His savings account was opened in 1975, and his money market savings account was opened in 1985.He has never supplied a TIN number to the bank

Question 320

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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 s

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?

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

What insurance disclosures are required in the lease disclosure statement?

Question 311

For a U.S. bank with domestic and foreign locations, which transaction does NOT require an information return to report the amount of interest paid?

A loan made to James Roberts, a U.S. resident, payable at the bank's New York office, to purchase securities secured by the borrower's home in Mexico

A loan made to Robert and Louise LeBlanc, who are resident aliens, payable at the bank's New York office, secured by a piece of real property located in Canada

A loan made to Smith and Withers, a partnership formed for the practice of law, located in the United States, payable at the bank's New York office, guaranteed by Mr. Smith and Mr. Withers, and secured by the law firm's office building

A loan made by Mrs. West, a U.S. citizen, to purchase a mobile home and the lot on which it will be placed; both the mobile home and lot are located in the United States

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Question 312

By which date must an interest reporting statement be sent to the borrower's last known address?

January 15 of the year following the year the interest is paid

January 31 of the year following the year the interest is paid

February 28 of the year following the year the interest is paid

March 1 of the year following the year the interest is paid

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Question 313

On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

A loan made to purchase a family car, secured by the car

An unsecured loan made to purchase a computer used in the borrower's business

A loan made to purchase a residence, secured by the residence

A loan made to purchase a home computer, secured by the computer

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Question 314

First National Bank has foreclosed on several loans. One of the loans is not subject to the requirement to submit an information return on the foreclosed property. Which loan is most likely NOT covered by the regulations?

A loan to Brown & Associates, a local law firm, to purchase furniture, secured by the furniture

A loan to Mrs. Lynch to purchase stereo equipment for use in her office waiting room

A loan to Dr. Stevens to purchase kitchen appliances

A loan to Mr. and Mrs. Sanders to purchase a computer for their antique shop

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Question 315

First National Bank made a loan to Lawrence & Co. for the purpose of purchasing landscape equipment, secured by a storage lot the company owneD. The borrower made payments for a year and then defaulteD. Three months passed without any communication or payments from the borrower, despite the bank's efforts to locate the company's owners. The company appears to have ceased operations. What is the bank's BEST course of action?

Do nothing, because the bank has no actual knowledge of abandonment and has not foreclosed on the property

Make reasonable inquiries to determine whether the property is abandoned and if so, report it as abandoned

Locate the borrower, foreclose on the property, and report the transaction as a foreclosure

Report the property as abandoned

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Question 316

Which of the following pieces of information is the bank NOT required to report on Form 1099 for foreclosed and abandoned property?

The name, address, and TIN of the borrowers

A description of the property

The original loan amount

Whether the borrower is personally liable for the debt

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Question 317

By what date must the bank send the borrower a statement in connection with an information return on foreclosed or abandoned property?

January 15 of the year following the year of the foreclosure or abandonment

January 31 of the year following the year of the foreclosure or abandonment

February 28 of the year following the year of the foreclosure or abandonment

March 1 of the year following the year of the foreclosure or abandonment

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Question 318

Which account is NOT subject to backup withholding?

A money market savings account owned by Brenda Wilson

A time deposit account owned by Bob and Nancy Dawson

An IRA owned by Max Jones

A savings account owned by Karen Hitchings

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Question 319

Walter Johnson has two accounts at First National Bank. His savings account was opened in 1975, and his money market savings account was opened in 1985.He has never supplied a TIN number to the bank. What must First National Bank do?

Withhold 28 percent of the payments on each of the accounts

Withhold 28 percent of the payments on each account and annually request a TIN on the savings account

Annually request a TIN on both accounts

Refuse to open future accounts without a TIN

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Question 320

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?

Refund the withheld interest to all payees

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

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

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

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Total 463 questions

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