FREE Certified Regulatory Compliance Manager Trivia Questions and Answers

Question 1

A contract to ship goods to Country M, a nation that is being boycotted, was signed by PTestGeeks Co.
A letter of credit approved by First National Bank will be used for payment.
Before being paid, PTestGeeks Co. must attest by the terms of the letter of credit that none of its directors is a citizen of any country that Country M has chosen to boycott.
After confirming all the paperwork is in place, First National Bank issues the letter of credit to PTestGeeks.
Does First National Bank need to notify the IRS about its involvement in a boycott?

Accepted Answer

Yes. The action was participation in a boycott and the bank must report the action to the IRS.

Answer

Yes, but no reporting requirements were triggered.

Answer

No. Only ABC Co. is required to report to the IRS.

Answer

No. The bank’s action was only ministerial.

Question 2

Which bank products are NOT governed by the Interagency Statement on Retail Sales of Nondeposit Investment Products' disclosure requirements?

Accepted Answer

Variable-rate savings accounts

Answer

Mutual funds

Answer

Fixed-rate annuities

Answer

Variable-rate annuities

Question 3

What disclosures must the bank's investment sales representative give the client by the Interagency Statement on Retail Sales of Nondeposit Investment Products?

Accepted Answer

That the investment product is not guaranteed by the bank

Answer

The arbitration procedure for resolving disputes over investment advice

Answer

The bank's regulatory agency

Answer

The sales commission resulting from the investment purchase

Question 4

A principal in municipal securities must directly supervise municipal securities activities. This entails going through all but one of the items below. What activity DOES NOT directly entail the direct supervision of municipal securities operations?

Accepted Answer

Providing quotations to customers

Answer

Opening the customer’s account

Answer

Handling customer complaints

Answer

Handling a municipal securities transaction

Question 5

Which one of the following bank policies is in violation of the Interagency Policy Statement on the Retail Sales of Nondeposit Investments?

Accepted Answer

Tellers and new accounts personnel will receive a $25 fee for all customers referred to the nondeposit investment department on the customer's purchase of an investment product.

Answer

Before a customer buys a nondeposit investment product, all bank personnel who are involved in the sale of nondeposit investments must give the consumer the bank's mandatory disclosures.

Answer

The amount of revenue that each department generates and how well each department can help clients identify suitable investments will determine how much supervisors and sales staff are paid.

Answer

The incorrectteller will talk to a bank customer about nondeposit investment options.

Question 6

Which of the following marketing initiatives would NOT imply that a bank would be free from SEC registration requirements?

Accepted Answer

Mentioning in a print advertisement that the bank provides accommodation securities trades for its regular custodial accounts

Answer

A listing of the bank's wide trust service's securities services for trust accounts

Answer

Along with other IRA perks, the bank should list its securities transfer services as a service it offers for IRA accounts.

Answer

Stating in a commercial for services related to employee benefit plans that the bank offers stocks brokerage services for accounts related to employee benefit plans

Question 7

Tellers at ACME Bank are encouraged to assist in the sale of insurance products to both potential and current clients.

Accepted Answer

It is hard for tellers to handle so many types of products.

Answer

Tellers should not be rewarded only when the referral results in a sale.

Answer

It is difficult for many people to get an insurance license.

Answer

It is hard to physically separate insured deposit products from insurance products.