CRA Regulatory Compliance & Ethical Standards 4

Question 1

Under the U.S. Foreign Corrupt Practices Act (FCPA), which of the following is TRUE regarding facilitation payments?

Accepted Answer

They are permitted for routine governmental actions but this exception is narrowly construed

Answer

The FCPA contains a narrow exception for facilitating payments to expedite routine non-discretionary governmental actions, though this exception has been increasingly scrutinized.

Question 2

A bank's compliance testing reveals that loan officers in one branch systematically deny qualified minority applicants. This MOST likely violates which regulation?

Accepted Answer

Equal Credit Opportunity Act (ECOA) and Fair Housing Act

Answer

Systematic denial of qualified minority applicants constitutes illegal redlining or disparate treatment, violating both ECOA and the Fair Housing Act.

Question 3

The 'materiality' threshold in financial reporting is BEST defined as:

Accepted Answer

Information whose omission or misstatement could influence users' economic decisions

Answer

Materiality is a qualitative and quantitative concept defined as information whose omission or misstatement could influence the decisions of reasonable users.

Question 4

Which regulatory body is primarily responsible for enforcing the Commodity Exchange Act and overseeing derivatives markets in the U.S.?

Accepted Answer

Commodity Futures Trading Commission (CFTC)

Answer

The CFTC has primary jurisdiction over U.S. derivatives markets, including futures, options, and swaps under the Commodity Exchange Act.

Question 5

Whistleblower protections under the Dodd-Frank Act are designed to:

Accepted Answer

Protect employees who report violations of securities laws to the SEC from employer retaliation

Answer

Dodd-Frank's whistleblower provisions protect employees from retaliation and provide financial awards to those who report securities law violations to the SEC.

(CRA) Certified Risk Architect Practice Test

(CRA) Certified Risk Architect Practice Test

CRA Regulatory Compliance & Ethical Standards 4