CRA Study Guide 2026
Everything you need to pass the CRA exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CRA Exam Format at a Glance
📚 CRA Topics to Study (69)
✍️ Sample CRA Questions & Answers
1. Which of the following best describes 'Pillar 2 capital add-ons' in the Basel framework?
Pillar 2 add-ons are supervisory authority-imposed requirements reflecting bank-specific risks not fully captured by Pillar 1's standardized charges.
2. A risk analyst maps risks along their entire value chain from raw materials to end customer. This approach is called:
Value chain risk analysis identifies risks at each stage of the production and delivery process, exposing interdependencies and single points of failure.
3. Which component of regulatory capital absorbs losses only in liquidation and does NOT protect depositors on a going-concern basis?
Tier 2 capital (e.g., subordinated debt) absorbs losses only in a gone-concern (winding-up) scenario, unlike CET1 and AT1 which absorb losses on a going-concern basis.
4. Why is documentation critical in compliance?
Comprehensive documentation is essential in compliance as it provides verifiable evidence that an organization has met its legal and regulatory obligations. This documentation is critical for internal and external audits, demonstrating due diligence and accountability, and can be crucial in legal proceedings.
5. Which of the following assets is NOT typically eligible as a High-Quality Liquid Asset (HQLA) under Basel III?
Only corporate bonds rated AA- or higher qualify as Level 2B HQLA; bonds rated below AA- do not meet the eligibility threshold.
6. A multinational corporation's foreign subsidiary is nationalized by the host government without fair compensation. This is an example of:
Expropriation risk refers to the danger that a host government will seize foreign-owned assets, either with inadequate compensation (expropriation) or none at all (confiscation).