Verified CRCM Dumps Q&As - CRCM Test Engine with Correct Answers
Pass Your CRCM Dumps as PDF Updated on 2022 With 463 Questions
NEW QUESTION 201
First National Bank has an employee benefit program whereby all bank employees who meet the bank's credit
underwriting standards may obtain consumer loans for
major purchases or expenses at a rate that is less than the bank's prime rate. Can the bank allow its executive officers to borrow under this program?
- A. Yes. Provided the program is available to everyone at the bank as an employee benefit, executive officers may also participate.
- B. No. Executive officers may not have preferential interest rates under any circumstances.
- C. No. However, the related interests of the executive officers may take advantage of it.
- D. Yes. However, executive officers must secure their loans with collateral valued at 100 percent of the loan balance or more.
Answer: A
NEW QUESTION 202
Content of notification to credit consumers must contain:
- A. Name and address of creditor
- B. Statement of the action taken
- C. Statement of the specific reasons for the adverse action or a disclosure of the applicant's right to receive the specific reasons within 30 days of a request. The request for specific reasons must be made within 60 days of the receipt of the adverse action notice.
- D. Statement of the specific reasons for the adverse action or a disclosure of the applicant's right to receive the specific reasons within 15 days of a request. The request for specific reasons must be made within 30 days of the receipt of the adverse action notice.
Answer: A,B,C
NEW QUESTION 203
Which of the following entities is exempt from the requirements of the Government Securities Act?
- A. A bank that operates a financial advisory service that provides advice to clients on the purchase and sale of government securities
- B. A bank that operates an investment department to provide investment advice and purchase and sell all types of securities (including government securities) for clients
- C. A national bank that purchases and sells government securities only in its fiduciary capacity on behalf of clients in its trust department
- D. A bank that operates a securities underwriting department to provide underwriting services to issuers of government securities
Answer: C
NEW QUESTION 204
Record keeping requirements-12 CFR 215.8 elaborates that:
- A. Banks may use any alternative recordkeeping method for insiders of affiliates if the bank's regulatory agency determines the bank's method is at least as effective as that required by Regulation O
- B. All recordkeeping systems must Include either an annual survey of insiders to identify related interests, or a requirement as part of each extension of credit that the borrower indicates whether he or she is an insider.
Provide for the maintenance of records of all credit to insiders, including the amounts and terms - C. All of these
- D. Each bank must establish a recordkeeping system to keep records necessary for compliance with Regulation O
Answer: C
Explanation:
Explanation
NEW QUESTION 205
Which of the following does an extension of credit NOT include?
- A. An advance by means of an overdraft or cash item
- B. The making or renewal of any loan or granting of a line of credit
- C. An advance against accrued salary
- D. An acquisition of a note on which an insider is a maker, drawer, or guarantor
Answer: C
NEW QUESTION 206
The Equal Credit Opportunity Act (ECOA) was enacted in 1974
to prevent discrimination in credit transactions. In 1975 the act was
amended. Which of the following prohibited base/s are now included in it?
- A. Receipt of public assistance income
- B. Exercise of rights under the Consumer Credit Protection Act
- C. All of these
- D. National origin
Answer: C
NEW QUESTION 207
Which of the following loans would First National report on its loan application register?
- A. A loan made to a couple, secured by their home, to pay for their children's education
- B. A refinancing of the balance of a home purchase loan made five years earlier, both loans will be secured by dwellings
- C. A bridge loan made to a newly transferred executive of a local company
- D. A loan made to construct a principal dwelling
Answer: B
NEW QUESTION 208
If the returned check is an electronic item that is not a representation of a ___________, Reserve Banks will indemnify a bank to which the check is returned if the bank incurs losses as a result of indemnities the bank would be required to make under Regulation CC in connection with a substitute check later created from the returned check. A Reserve Bank will not be liable, however, if the loss could be attributed to a lack of good faith or failure to exercise ordinary care on the part of any person who handled the item.
- A. Retuning item
- B. Returning check
- C. Substitute check
- D. Cross check
Answer: C
NEW QUESTION 209
A bank may include all of the following in the narrative portion of its financial disclosure except for one.
Which of these pieces of information CANNOT be disclosed?
- A. The bank's future plans for product development
- B. Information related to a regulatory enforcement action that currently applies to the bank
- C. Information relating to mergers and acquisitions
- D. An excerpt from the latest regulatory examination prepared by the bank's regulatory agency
Answer: D
NEW QUESTION 210
Your institution has identified a transaction by an existing depositor that should be blocked under OFAC requirements. The branch manager contacts you for specific instructions. Before reporting the transaction to OFAC, what should the bank do?
- A. Close the customer's account
- B. Process the transaction
- C. Place the funds in an interest-bearing account
- D. Reject the transaction
Answer: C
NEW QUESTION 211
Which of the following interest-bearing accounts is EXEMPT from Form 1099 annual information reporting requirements under IRS regulations?
- A. Negotiable order of withdrawal accounts
- B. Time certificates of deposit
- C. Individual retirement accounts
- D. Money market deposit accounts
Answer: C
NEW QUESTION 212
Which of the following is the best method for a large bank to use in monitoring its CRA performance?
- A. Evaluate approval and denial rates for minority loan applicants.
- B. Review the effectiveness of marketing materials.
- C. Perform a geographic analysis of lending levels and dispersion of loans.
- D. Perform a quarterly evaluation of the bank's loans-to-deposits ratio.
Answer: C
NEW QUESTION 213
A bank municipal securities dealer has 30 employees in its municipal securities operation. How many municipal securities principals must it have?
- A. At least three
- B. At least two
- C. No more than five
- D. At least one
Answer: B
NEW QUESTION 214
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?
- A. Retain the original certificate in the branch vault for the term of the loan
- B. Contact the SIC to determine if the certificate was reported as lost, counterfeit, or stolen
- C. Record the certificate information and give the original back to the customer
- D. Retain a copy of the certificate in the loan file
Answer: B
NEW QUESTION 215
Information reports must include which of the following details?
- A. Name, address, and TIN of the borrower
- B. Fair market value of the property at the time of the loan
- C. Address of the property securing the mortgage
- D. Purpose of the loan
Answer: A
NEW QUESTION 216
Debt collectors acquiring location information from a third party:
- A. Once location information is received, may not communicate with the third party again unless the person asks the debt collector to or the debt collector reasonably believes the earlier response was erroneous or incomplete and that person now has correct or complete location information
- B. Must state that the call is to confirm or correct location information
- C. Must identify themselves and, if expressly asked, must identify their employer
- D. All of these
Answer: D
NEW QUESTION 217
In evaluating a bank's CRA performance, to what do bank examiners give the greatest consideration?
- A. Efforts to analyze the geographic origins of its deposit base
- B. Extensions of credit the bank has made where the financing benefits low and moderate-income borrowers or neighborhoods
- C. Participation of the bank's board of directors in formulating CRA policy
- D. Efforts to establish communication with members of the community regarding credit needs
Answer: B
NEW QUESTION 218
ACME Bank is a $600 million institution with 15 branches within three counties. Because of its proximity to Mexico, the bank has many foreign national customers and makes many foreign wire transfers for its customers. Currently the bank's branch managers print the OFAC list of SDNs and place them in strategic places in each branch. The wire transfer department keeps its own copy of the list. The compliance officer has implemented an annual auditing program to check the bank's compliance with OFAC regulations. The findings of this audit are provided to the bank's board of directors annually. The bank's regulatory agency has indicated to management that the bank has a high risk for BSA/AML/OFAC compliance. Of the following actions, which would be the most effective to strengthen the bank's OFAC compliance?
- A. Conduct compliance audits twice a year
- B. Routinely provide account transaction information to federal security agencies so suspicious patterns can be detected
- C. As an internal control procedure, require the BSA officer to check the OFAC Web site daily for any changes to the SDN list
- D. Purchase and implement interdiction software for the wire transfer area
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION 219
First National Bank made a loan to a nonbank affiliate of its holding company that is secured by stocks, bonds, and debentures. At the outset of the loan, First National had collateral with a market value equal to
150 percent of the loan amount. Over time, some of the collateral has been retired and amortized. Some has dropped in value. What is the responsibility of the bank regarding the collateral?
- A. The bank has no responsibility once the loan is made provided the percentages were correct at the loan's inception.
- B. The bank must check values every month to ensure that the percentages are correct at all times.
- C. The bank must check values when the collateral is retired or amortized to make sure the collateral is replaced with securities that will bring the loan into compliance with the percentages required in the law.
- D. The bank must annually check the value of the collateral to ensure that the percentage of value is maintained.
Answer: C
NEW QUESTION 220
Which of the following is the best method for a large bank to use in monitoring its CRA performance?
- A. Evaluate approval and denial rates for minority loan applicants.
- B. Review the effectiveness of marketing materials.
- C. Perform a geographic analysis of lending levels and dispersion of loans.
- D. Perform a quarterly evaluation of the bank's loans-to-deposits ratio.
Answer: C
NEW QUESTION 221
This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer's loan obligation on the occurrence of a specified event. It May be a part of the loan itself or a separate agreement. Does not include a loan payment deferral arrangement where the borrower or the bank can unilaterally defer a payment. What is it?
- A. Anti-dying
- B. Debt cancellation contract (DCC)
- C. Debt suspension agreement (DSA)
- D. ALLL
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION 222
______________ is frequent refinancing that do not benefit the borrower. This practice can result in borrower injury from the fees imposed and from the fact that it decreases home equity and increases the consumer's debt burden, thus increasing the chance of foreclosure.
- A. Loan flipping
- B. Subprime loans
- C. Securitization
- D. Loan refinancing
Answer: A
Explanation:
Explanation
NEW QUESTION 223
Issuing Bank, a foreign bank, maintains an account with First National Bank, a U.S. bank. Issuing Bank issues a letter of credit in favor of ABC, Inc., a U.S. corporation. The letter of credit contains a boycott provision. The letter of credit provides that any negotiating bank may obtain reimbursement from Issuing Bank's account at First National Bank by certifying that the conditions of the letter of credit have been met. Issuing Bank does not send First National Bank a copy of the letter of credit. May First National Bank reimburse negotiating banks for the letter of credit when it contains a boycott provision?
- A. Yes. First National Bank did not know of it, so it may reimburse a negotiating bank.
- B. No. First National Bank is under a duty to determine the underlying conditions of any letter of credit it pays.
- C. Yes, provided ABC Company is not a participant in the boycott.
- D. No. First National Bank should request a copy of the letter of credit at the time of its payment and then refuse to pay once it is aware of the provision.
Answer: A
NEW QUESTION 224
Compliance professionals have a duty to keep senior management and the board apprised of the state of compliance within the bank through which of the following:
- A. All of the options mentioned above
- B. Self-monitoring and audit results
- C. Proactive compliance controls
- D. Timely and accurate regulatory reporting
Answer: A
NEW QUESTION 225
is an agent or a subagent of the owner of an item; agency terminates when it receives
payment for an item in finally collected funds and makes the proceeds available to the sender, and the time for commencing all actions against it has expired.
- A. Foreign bank
- B. Clearing agent
- C. The Reserve Bank
- D. Foreign banker
Answer: C
NEW QUESTION 226
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