Capital One Assessment Test Standards and Regulations 5

Question 1

Under the Servicemembers Civil Relief Act (SCRA), active-duty military personnel are entitled to an interest rate cap of what percentage on pre-service debts?

Accepted Answer

6% per annum

Answer

The SCRA caps interest rates at 6% per annum on debts incurred prior to active military service upon written request.

Question 2

Which principle from the Basel III capital framework requires banks like Capital One to hold a minimum Common Equity Tier 1 (CET1) capital ratio to absorb losses?

Accepted Answer

Minimum CET1 capital ratio of 4.5% of risk-weighted assets

Answer

Basel III requires banks to maintain a minimum CET1 ratio of 4.5% of risk-weighted assets, plus additional buffers for systemically important institutions.

Question 3

The Telephone Consumer Protection Act (TCPA) restricts financial institutions' ability to contact customers by requiring:

Accepted Answer

Prior express consent before placing autodialed or prerecorded calls to cell phones

Answer

The TCPA requires prior express written consent before placing autodialed or prerecorded calls or texts to mobile phone numbers.

Question 4

Capital One's obligation under the Children's Online Privacy Protection Act (COPPA) primarily applies when:

Accepted Answer

Collecting personal information online from children under 13

Answer

COPPA requires verifiable parental consent before collecting, using, or disclosing personal information from children under 13 through online services.

Question 5

Under the Military Lending Act (MLA), which product offered to active-duty servicemembers is subject to the Military Annual Percentage Rate (MAPR) cap of 36%?

Accepted Answer

Consumer credit products including credit cards, personal loans, and payday loans

Answer

The MLA's 36% MAPR cap applies broadly to consumer credit extended to active-duty servicemembers, including credit cards and personal loans (with limited exceptions).

Capital One Assessment Test Practice Test

Capital One Assessment Test Practice Test

Capital One Assessment Test Standards and Regulations 5