CRB Financial Regulations & Compliance 3

Question 1

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

Accepted Answer

Redlining and discriminatory lending in underserved communities

Answer

The CRA was enacted in 1977 to combat redlining and encourage banks to meet the credit needs of all communities, including low- and moderate-income areas.

Question 2

Under the Equal Credit Opportunity Act (ECOA), which of the following is a prohibited basis for credit decisions?

Accepted Answer

Marital status

Answer

ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.

Question 3

What is 'beneficial ownership' information required under FinCEN's Customer Due Diligence rule?

Accepted Answer

Identification of individuals who own 25% or more of a legal entity customer

Answer

FinCEN's CDD rule requires banks to identify and verify the identity of individuals who own 25% or more of a legal entity opening an account.

Question 4

Which regulation governs the timely availability of funds deposited into transaction accounts?

Accepted Answer

Regulation CC

Answer

Regulation CC implements the Expedited Funds Availability Act, setting maximum hold periods that banks may place on deposited checks.

Question 5

A bank officer approves a loan to a family member without disclosing the relationship. This best describes which compliance concern?

Accepted Answer

Conflict of interest

Answer

Approving credit for related parties without disclosure is a classic conflict of interest that violates most banks' ethics policies and regulatory expectations.

(CRB) Certified Retail Banker Practice Test

(CRB) Certified Retail Banker Practice Test

CRB Financial Regulations & Compliance 3