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

TILA does not grant the right to rescind for loans that are primarily for business purposes. In the situation you mentioned, where a line of credit is used for the borrower's business and secured by their primary dwelling, the borrower does not have the right to rescind the loan agreement.

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

When opening a deposit account online, Regulation E disclosures must be provided either at the time of account opening or before the first Electronic Fund Transfer (EFT) occurs. Regulation E, which is part of the Electronic Fund Transfer Act (EFTA) in the United States, establishes the rights and responsibilities of consumers and financial institutions regarding electronic transfers of funds.

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

The primary responsibility for overseeing a bank's inherent compliance risk lies with the Board of Directors. The Board of Directors is responsible for the overall governance and strategic direction of a bank, including managing risk. Compliance risk refers to the potential for violations of laws, regulations, and internal policies and procedures.

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

If a branch manager discovers an unexplained $7,000 cash shortage in Teller #1's cash drawer, the bank must take appropriate actions, and one of those actions is to file a Suspicious Activity Report (SAR).

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

The CRA Sunshine Act requires certain financial institutions to report and disclose information about covered agreements, which are agreements related to the institution's CRA activities. This includes agreements for grants, loans, or other forms of assistance provided to fulfill CRA obligations.

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM - Certified Regulatory Compliance Manager Practice Test

FREE Certified Regulatory Compliance Manager MCQ Questions and Answers