CRCM Trivia 2 — Questions and Answers
Question 1: Which federal agency has primary rulemaking authority under the Dodd-Frank Act for most consumer financial protection laws?
- Office of the Comptroller of the Currency
- Consumer Financial Protection Bureau (Correct answer)
- Federal Deposit Insurance Corporation
- Federal Reserve Board
Correct answer: Consumer Financial Protection Bureau
The CFPB was created by the Dodd-Frank Act of 2010 and holds primary rulemaking, supervisory, and enforcement authority for most federal consumer financial protection laws.
Question 2: Under the Bank Secrecy Act, what is the threshold dollar amount that triggers a Currency Transaction Report (CTR)?
- $5,000
- $10,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $10,000
Financial institutions must file a CTR for cash transactions exceeding $10,000 in a single business day by or for any person.
Question 3: The Community Reinvestment Act (CRA) was enacted primarily to address which practice?
- Excessive bank fees charged to low-income customers
- Redlining and credit discrimination in low-income communities (Correct answer)
- Predatory mortgage lending practices
- Unfair debt collection by banks
Correct answer: Redlining and credit discrimination in low-income communities
CRA was enacted in 1977 to combat redlining, where banks refused to provide credit or services to residents in low-income or minority neighborhoods.
Question 4: Which regulation implements the Truth in Lending Act (TILA) and requires disclosure of APR and finance charges?
- Regulation B
- Regulation E
- Regulation Z (Correct answer)
- Regulation DD
Correct answer: Regulation Z
Regulation Z implements TILA and requires lenders to disclose credit terms including APR, finance charges, and total payments to help consumers compare credit offers.
Question 5: What is the primary purpose of the Suspicious Activity Report (SAR) filing requirement under BSA?
- To document all large currency transactions above $3,000
- To report potential money laundering or other financial crimes to FinCEN (Correct answer)
- To notify state banking regulators of unusual customer behavior
- To alert the IRS of unreported taxable income
Correct answer: To report potential money laundering or other financial crimes to FinCEN
SARs are filed with FinCEN to report transactions that a financial institution suspects involve money laundering, fraud, or other criminal activity.
Question 6: Under RESPA, what document replaced the HUD-1 Settlement Statement for most residential mortgage transactions after October 2015?
- Loan Estimate
- Closing Disclosure (Correct answer)
- Good Faith Estimate
- Truth-in-Lending Disclosure
Correct answer: Closing Disclosure
The Closing Disclosure replaced the HUD-1 Settlement Statement under the TRID rule (TILA-RESPA Integrated Disclosure) effective October 3, 2015.
Question 7: Which law prohibits financial institutions from sharing nonpublic personal information with nonaffiliated third parties without giving customers an opt-out opportunity?
- Fair Credit Reporting Act
- Gramm-Leach-Bliley Act (Correct answer)
- Electronic Fund Transfer Act
- Equal Credit Opportunity Act
Correct answer: Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to provide privacy notices and allow customers to opt out of information sharing with nonaffiliated third parties.
CRCM Trivia 2
Which federal agency has primary rulemaking authority under the Dodd-Frank Act for most consumer financial protection laws?