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ABA CRCM Practice Test - Questions Answers, Page 39

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List of questions

Question 381

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It is the policy of First Safe Bank to offer credit life insurance and accident and disability insurance to all consumer loan customers. What procedures fulfill the disclosure requirements for the b

Question 382

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Which of the following is (are) NOT covered by the regulation?

Question 383

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A bank representative is selling insurance products in, or on behalf of, the bank. What may the representative NOT require the customer to do?

Question 384

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A recent compliance review revealed that several branch officers are using obsolete loan application forms, which do not include disclosures related to credit insurance sales. Which of the following

Question 385

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Which of the following entities is exempt from the requirements of the Government Securities Act?

Question 386

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If a bank is a government securities broker or dealer, what are its responsibilities when it obtains a Form G-FIN-4 or an MSD-4 from an employee?

Question 387

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In which of the following activities may a bank engage and NOT be considered a municipal securities dealer?

Question 388

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A bank municipal securities dealer has 30 employees in its municipal securities operation. How many municipal securities principals must it have?

Question 389

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First National Bank is a municipal securities dealer. Its municipal securities department is supervised by Mary Watkins, a municipal securities principal. The department has five other employees, in

Question 390

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Which of the following actions is NOT required of a municipal securities principal?

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 381

It is the policy of First Safe Bank to offer credit life insurance and accident and disability insurance to all consumer loan customers. What procedures fulfill the disclosure requirements for the bank?

Place a sign on loan officers' desks that provides the disclosures and give each customer a written disclosure it loan closing.

Give each customer the disclosures orally at the time of application and, if applicable, in writing at loan closing.

Only a written disclosure at closing is necessary.

Only give disclosures to persons who actually purchase the insurance.

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Question 382

Which of the following is (are) NOT covered by the regulation?

All banks regardless of insurance sales.

A lender who indicates to the consumer that he or she is selling insurance on behalf of the bank

A person to whom the bank refers consumers and who has a contract with the bank to receive commissions on sales of insurance

A person who sells insurance to nonconsumers for other than personal, family, or household purposes

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Question 383

A bank representative is selling insurance products in, or on behalf of, the bank. What may the representative NOT require the customer to do?

Pre-pay a portion of the initial premium

Complete an application for the insurance on the premises

Obtain a medical examination for life insurance coverage

Purchase the insurance from an affiliate of the institution

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Question 384

A recent compliance review revealed that several branch officers are using obsolete loan application forms, which do not include disclosures related to credit insurance sales. Which of the following steps should be taken FIRST?

Determine which customers were affected and take corrective action.

Contact the bank's primary regulator to determine the best course of action.

Instruct the branch to destroy all obsolete forms and immediately begin using the current versions.

Determine whether the branches use a separate document for required credit insurance sales disclosure.

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Question 385

Which of the following entities is exempt from the requirements of the Government Securities Act?

A bank that operates a securities underwriting department to provide underwriting services to issuers of government securities

A national bank that purchases and sells government securities only in its fiduciary capacity on behalf of clients in its trust department

A bank that operates a financial advisory service that provides advice to clients on the purchase and sale of government securities

A bank that operates an investment department to provide investment advice and purchase and sell all types of securities (including government securities) for clients

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Question 386

If a bank is a government securities broker or dealer, what are its responsibilities when it obtains a Form G-FIN-4 or an MSD-4 from an employee?

Retain the form for 10 years

Verify the accuracy of all information on the form

Verify the accuracy of the information by inquiring of all employers of the employee for the previous three years

Verify the accuracy of the information by inquiring of all employers of the employee for the previous five years

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Question 387

In which of the following activities may a bank engage and NOT be considered a municipal securities dealer?

Underwriting municipal securities

Buying securities for the bank's own account

Providing advice to customers regarding the purchase of municipal securities

Engaging in research and giving investment advice regarding municipal securities

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Question 388

A bank municipal securities dealer has 30 employees in its municipal securities operation. How many municipal securities principals must it have?

At least one

At least three

No more than five

At least two

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Question 389

First National Bank is a municipal securities dealer. Its municipal securities department is supervised by Mary Watkins, a municipal securities principal. The department has five other employees, including two municipal securities representatives. Martin Wells, a commercial loan customer of the bank, tells Ms. Watkins he wants to invest in municipal securities and asks for her help. Mr. Wells has never dealt with the municipal securities department of the bank and has never purchased municipal securities. He wants to purchase the securities today. What should Ms. Watkins do?

Determine what he would like to buy and help him buy it

Help him make the purchase only if she can be assured the transaction meets the MSRB suitability requirements

Help him make the purchase but avoid making any recommendations or comments about the advisability of the transaction

Refer him to a municipal securities representative

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