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ABA CRCM Practice Test - Questions Answers, Page 36

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List of questions

Question 351

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A bank received a signed letter criticizing its performance in meeting the credit needs of the community, but not adversely reflecting upon any individual bank employee's reputation. What must the b

Question 352

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What is the definition of a ''small'' business under CRA rules?

Question 353

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Which of the following must a ''large'' bank maintain as part of its CRA program?

Question 354

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A bank has been criticized by an examiner for less than satisfactory CRA performance. The bank must show improvement in its commitment to CR A. For the examiner, what would be LEAST effective in dem

Question 355

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Which of the following is the best method for a large bank to use in monitoring its CRA performance?

Question 356

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In evaluating a bank's CRA performance, to what do bank examiners give the greatest consideration?

Question 357

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What obligation does a bank have to disclose a covered CRA agreement 40 months after it terminates?

Question 358

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Which of the following institutions is NOT subject to the coverage of HMDA? * Bank A, with assets of $55 million and located in a large urban city, makes home improvement loans and some home purcha

Question 359

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Several types of loan-related data appear in the following list. Which type of data is NOT required to be reported under HMDA?

Question 360

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Of the following types of data, which one is NOT required to be reported for each application for an originated loan subject to Regulation C?

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 351

A bank received a signed letter criticizing its performance in meeting the credit needs of the community, but not adversely reflecting upon any individual bank employee's reputation. What must the bank do with this letter?

Have it reviewed and discussed by the board of directors

File it with the regional office of the bank's federal regulator

Retain it in the CRA public comment file

Answer it within 10 business days

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Question 352

What is the definition of a ''small'' business under CRA rules?

Employs fewer than 50 people

Has assets of less than $5 million

Produces gross annual revenues of $1 million or less

Does not generally have access to regional or national credit markets

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Question 353

Which of the following must a ''large'' bank maintain as part of its CRA program?

Listing of director, officer, and employee community involvement, and a listing of loans made to low- and moderate-income individuals

Description of its assessment area, written comments and responses, and the public portion of the regulator's most recent CRA performance evaluation

Copy of the bank's CRA Notice and the bank's most recent five years of CRA disclosure statements

A comprehensive record of all CRA-related training completed by employees during the past two years 696 AMERICAN BANKERS ASSOCIATION

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Question 354

A bank has been criticized by an examiner for less than satisfactory CRA performance. The bank must show improvement in its commitment to CR A. For the examiner, what would be LEAST effective in demonstrating the change?

Informing the examiner that the bank does not plan to acquire or merge with another bank, so CRA is not a priority

Giving the examiner an updated CRA public file

Showing the examiner a list of community groups with which the bank has met in the past 24 months to discuss credit needs

Showing the examiner results of the bank's most recent geocoding analysis, indicating parity in the number of loans made in each census tract

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Question 355

Which of the following is the best method for a large bank to use in monitoring its CRA performance?

Review the effectiveness of marketing materials.

Evaluate approval and denial rates for minority loan applicants.

Perform a quarterly evaluation of the bank's loans-to-deposits ratio.

Perform a geographic analysis of lending levels and dispersion of loans.

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Question 356

In evaluating a bank's CRA performance, to what do bank examiners give the greatest consideration?

Efforts to analyze the geographic origins of its deposit base

Efforts to establish communication with members of the community regarding credit needs

Participation of the bank's board of directors in formulating CRA policy

Extensions of credit the bank has made where the financing benefits low and moderate-income borrowers or neighborhoods

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Question 357

What obligation does a bank have to disclose a covered CRA agreement 40 months after it terminates?

It must maintain a copy in its CRA public file.

It must send a copy to its regulatory agency upon request.

It must send a copy to a member of the public upon request.

It has no obligation to disclose these covered CRA agreements.

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Question 358

Which of the following institutions is NOT subject to the coverage of HMDA?

* Bank A, with assets of $55 million and located in a large urban city, makes home improvement loans and some home purchase loans to existing customers, but no mortgage loans.

* Bank B, with assets of $9 million and located in a rural area, has several branches, also in rural areas, including one that makes home improvement and home purchase loans.

* Mortgage Company C, with assets of $75 million and a home office in a large East Coast city, makes exclusively home purchase loans.

All the institutions are subject to HMDA

Bank A

Bank B

Mortgage Company C

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