CBP Banking Operations Management 4

Question 1

A bank's Business Continuity Plan (BCP) is primarily designed to:

Accepted Answer

Ensure critical operations can continue during and after a disruptive event

Answer

A BCP documents procedures to maintain or rapidly restore essential business functions following disruptions such as natural disasters, cyberattacks, or system failures.

Question 2

Under the Community Reinvestment Act (CRA), federal regulators assess whether banks are:

Accepted Answer

Meeting the credit needs of all segments of their communities, including low- and moderate-income areas

Answer

The CRA requires regulators to evaluate whether banks serve the credit needs of their entire communities, including lower-income neighborhoods where they take deposits.

Question 3

In banking, 'know your customer' (KYC) procedures are most directly associated with:

Accepted Answer

Customer identification and due diligence to prevent money laundering

Answer

KYC requires banks to verify customer identities, understand the nature of customer relationships, and monitor for suspicious activity as part of AML compliance.

Question 4

Which document establishes the legal framework governing a bank's relationship with a commercial checking account holder?

Accepted Answer

Signature card and deposit account agreement

Answer

The signature card identifies authorized signers while the deposit account agreement sets the contractual terms, including fees, overdraft policies, and account rules.

Question 5

A bank processes an ACH debit entry that the originating company sent in error. The customer's right to return the transaction as 'unauthorized' expires after:

Accepted Answer

60 calendar days

Answer

Under NACHA rules, consumers have 60 calendar days from the settlement date to dispute an unauthorized ACH debit by submitting a Written Statement of Unauthorized Debit.

(CBP) Certified Banking Professional Practice Test

(CBP) Certified Banking Professional Practice Test

CBP Banking Operations Management 4