FREE CBT Banking Regulations and Compliance Questions and Answers

Question 1

A customer reports an unauthorized electronic funds transfer from their checking account.
According to Regulation E, what is the maximum liability for the customer if they notify the bank within two business days of learning about the loss?

Accepted Answer

$50.

Answer

The full amount of the transfer.

Answer

$500.

Answer

There is no liability for the customer.

Question 2

Which of the following scenarios would require a bank teller to file a Currency Transaction Report (CTR) with FinCEN?

Accepted Answer

A customer makes two separate cash deposits of $6,000 each into their account on the same business day.

Answer

A customer purchases a cashier's check for $15,000 using funds from their savings account.

Answer

A customer deposits a business check for $20,000.

Answer

A customer wires $11,000 to an international account.

Question 3

A bank's responsibility to screen transactions against lists of sanctioned countries and individuals to prevent transactions with terrorists and narcotics traffickers falls under the compliance requirements of which agency?

Accepted Answer

The Office of Foreign Assets Control (OFAC)

Answer

The Federal Deposit Insurance Corporation (FDIC)

Answer

The Financial Crimes Enforcement Network (FinCEN)

Answer

The Office of the Comptroller of the Currency (OCC)

Question 4

Regulation DD, which implements the Truth in Savings Act (TISA), requires banks to disclose specific information to customers. Which of the following is a key disclosure required by Regulation DD?

Accepted Answer

The Annual Percentage Yield (APY) on an interest-bearing account.

Answer

The bank's quarterly profit margin.

Answer

The names of the bank's board of directors.

Answer

The schedule for the next federal bank examination.

Question 5

A customer deposits a $7,000 personal check into their account. Under Regulation CC (Expedited Funds Availability Act), which of the following is an exception that allows a bank to place an extended hold on the funds?

Accepted Answer

The total amount of checks deposited in one day exceeds $5,525.

Answer

The check is from an out-of-state bank.

Answer

The customer's account has been open for 45 days.

Answer

The teller has a gut feeling the check might not be good.

Question 6

A customer brings in $4,000 in cash to purchase a money order. Under the Bank Secrecy Act (BSA) recordkeeping rules, what is the teller's primary obligation?

Accepted Answer

Obtain and record identification from the customer.

Answer

File a Currency Transaction Report (CTR) immediately.

Answer

Refuse the transaction as it is suspicious.

Answer

File a Suspicious Activity Report (SAR) because the customer is using cash.

A customer reports an unauthorized electronic funds transfer from their checking account.According to Regulation E, what is the maximum liability for the customer if they notify the bank within two business days of learning about the loss?

A customer reports an unauthorized electronic funds transfer from their checking account.
According to Regulation E, what is the maximum liability for the customer if they notify the bank within two business days of learning about the loss?