Capital One Assessment Test Standards and Regulations 2

Question 1

Under the Bank Secrecy Act (BSA), financial institutions must file a Currency Transaction Report (CTR) for cash transactions exceeding what threshold?

Accepted Answer

$10,000

Answer

The BSA requires filing a CTR for cash transactions exceeding $10,000 in a single day.

Question 2

Which regulation prohibits financial institutions from discriminating in credit decisions based on race, color, religion, national origin, sex, marital status, or age?

Accepted Answer

Equal Credit Opportunity Act (ECOA)

Answer

The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against applicants based on protected characteristics.

Question 3

What does the Gramm-Leach-Bliley Act (GLBA) primarily require financial institutions to do?

Accepted Answer

Explain their information-sharing practices and protect customers' private financial data

Answer

The GLBA requires financial institutions to explain their privacy policies and safeguard customers' nonpublic personal information.

Question 4

A customer makes multiple cash deposits of $9,500 on consecutive days to avoid CTR filing. This practice is known as:

Accepted Answer

Structuring (smurfing)

Answer

Structuring, also called smurfing, is the illegal practice of breaking up transactions to evade BSA reporting thresholds.

Question 5

The Community Reinvestment Act (CRA) was enacted primarily to address which issue?

Accepted Answer

Redlining and financial institutions' failure to serve low- and moderate-income communities

Answer

The CRA was enacted to encourage banks to meet the credit needs of all communities they serve, including low- and moderate-income neighborhoods.

Capital One Assessment Test Practice Test

Capital One Assessment Test Practice Test

Capital One Assessment Test Standards and Regulations 2