Free Certified Regulatory Compliance Manager MCQ Questions and Answers

Question 1

With the exception of the following circumstances, a borrower may cancel a loan agreement:

Accepted Answer

A line of credit used for the borrower's business, secured by the borrower's primary  dwelling

Answer

A revolving line of credit used to upgrade the borrower's principal residence and secured by that property

Answer

A loan to settle a deed contract secured by the borrower's principal residence

Answer

An expansion of a credit line from $5,000 to $10,000 that is secured by the borrower's principal residence

Question 2

Regulation E disclosures MUST be given at the time of account opening when creating a deposit account online, or:

Accepted Answer

Before the first EFT occurs

Answer

Within three business days of a customer's request for the EFT service

Answer

Along with the first periodic statement

Answer

Within three business days of account opening

Question 3

Which of the following should have the primary responsibility for managing the inherent compliance risk in a bank?

Accepted Answer

Board of Directors

Answer

Compliance officer

Answer

Internal audit

Answer

Consumers

Question 4

The cash drawer of Teller #1 has a mysterious $7,000 cash deficit, which the branch manager discovers. Which of the below activities is required of the bank?

Accepted Answer

File a Suspicious Activity Report (SAR)

Answer

File a Currency Transaction Report (CTR) with the IRS

Answer

Discharge Teller #1 immediately

Answer

Send a notice of adverse action to the bank's federal regulator

Question 5

Recently, a compliance specialist learned that the bank had failed to submit and disclose a complete covered agreement as required by the CRA Sunshine Act. What has to be supplied in order to guarantee accurate reporting going forward?

Accepted Answer

Grants or loans to fulfill CRA activity

Answer

A copy of the agreement to the regulatory agency 24 months after the end of the term

Answer

All individual mortgage loans

Answer

Non-public or confidential information that will be provided in the public file

Question 6

A corporation that would become a financial subsidiary of First State Bank, a state nonmember institution, is planned for acquisition. First State will inform the FDIC of its intended purchase via a notification. Which of the following considerations would NOT be considered by the FDIC when deciding whether to acquire the bank?

Accepted Answer

First State Bank's asset size

Answer

Whether Fist State Bank is well capitalized

Answer

Fist state Bank's CRA rating

Answer

The impact of the acquisition on First State Bank's safety and soundness

Question 7

Congress limited financial organizations' ability to share consumer information with other parties. By the law, financial institutions must also provide disclosures when starting a client relationship and then once a year after that.

Accepted Answer

Gramm-Leach -Billey Act of 1999

Answer

Gramm-Leach-Billey Act of 2001

Answer

Gramm-Leach Act of 2000

Answer

Gramm-Billey Act of 1998