Texas Banking Commission Officer Licensin
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g Exam Practice Questions And Correct Ans
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wers (Verified Answers) Plus Rationales
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2026|2027 Q&A | Instant Download Pdf b b b b b
1. Which Texas statute governs the regulation of state-chartered banks?
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A. Texas Trust Code
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B. Texas Banking Act
b b b
C. Texas Securities Act
b b b
D. Texas Insurance Code
b b b
B. Texas Banking Act
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The Texas Banking Act provides the statutory framework for the regulation and
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supervision of state-chartered banks in Texas.
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2. Who appoints the Texas Banking Commissioner?
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A. Texas Governor
b b
B. State Legislature
b b
C. Finance Commission of Texas
b b b b
D. Texas Supreme Court
b b b
C. Finance Commission of Texas
b b b b
,The Finance Commission of Texas appoints the Banking Commissioner, who
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serves as the chief executive of the Texas Department of Banking.
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3. Which of the following is NOT a primary responsibility of the Texas
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Department of Banking? b b
A. Supervising state-chartered banks
b b b
B. Regulating insurance companies
b b b
C. Licensing money services businesses
b b b b
D. Supervising trust companies
b b b
B. Regulating insurance companies
b b b
The regulation of insurance companies is handled by the Texas Department of
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Insurance, not the Texas Department of Banking.
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4. The Bank Secrecy Act (BSA) primarily addresses:
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A. Consumer lending disclosures
b b b
B. Deposit insurance
b b
C. Anti-money laundering compliance
b b b
D. Credit card interest rates
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C. Anti-money laundering compliance
b b b
The BSA focuses on preventing money laundering and requires banks to rep
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ort suspicious activities.
b b
5. The threshold for filing a Currency Transaction Report (CTR) is:
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A. $3,000
b
B. $5,000
b
C. $10,000
b
D. $20,000
b
C. $10,000
b
Banks must file a CTR for any transaction involving more than $10,000 in curren
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cy in a single day.
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, 6. What is the maximum deposit insurance coverage provided by the
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FDIC per depositor, per bank?
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A. $100,000
b
B. $150,000
b
C. $250,000
b
D. $500,000
b
C. $250,000
b
The FDIC insures up to $250,000 per depositor, per insured bank, for each accou
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nt ownership category.
b b
7. Which federal agency is primarily responsible for enforcing consumer
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protection laws in financial services? b b b b
A. FDIC
b
B. OCC
b
C. CFPB
b
D. SEC
b
C. CFPB
b
The Consumer Financial Protection Bureau (CFPB) enforces consumer financ
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ial laws to ensure fairness in financial markets.
b b b b b b b
8. What is a key responsibility of a bank officer under the Texas Banking A
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ct?
A. Drafting state legislation
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B. Supervising the Texas Department of Insurance
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C. Ensuring the bank operates in a safe and sound manner
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D. Approving mergers between national banks
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C. Ensuring the bank operates in a safe and sound manner
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Officers are responsible for maintaining the safety and soundness of the ba
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nk under Texas regulations.
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9. The Community Reinvestment Act (CRA) is designed to:
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, A. Reduce interest rates
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B. Prevent insider trading
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C. Encourage lending in low- and moderate-income neighborhoods
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D. Eliminate ATM fees
b b b
C. Encourage lending in low- and moderate-
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income neighborhoods CRA ensures that banks meet the credit needs of
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ball segments of their communities.
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10. A Texas bank must notify the Department of Banking of a branch c
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losure at least: b b
A. 10 days in advance
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B. 30 days in advance
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C. 60 days in advance
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D. 90 days in advance
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D. 90 days in advance
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Advance notice ensures transparency and regulatory oversight of branch closur
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es.
11. Which law prohibits discrimination in credit transactions?
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A. Truth in Lending Act
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B. Equal Credit Opportunity Act
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C. CRA
b
D. RESPA
b
B. Equal Credit Opportunity Act
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The ECOA prohibits lenders from discriminating based on race, sex, religion,
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or national origin.
b b b
12. The Truth in Savings Act requires banks to:
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b b b b
g Exam Practice Questions And Correct Ans
b b b b b b
wers (Verified Answers) Plus Rationales
b b b b b
2026|2027 Q&A | Instant Download Pdf b b b b b
1. Which Texas statute governs the regulation of state-chartered banks?
b b b b b b b b b
A. Texas Trust Code
b b b
B. Texas Banking Act
b b b
C. Texas Securities Act
b b b
D. Texas Insurance Code
b b b
B. Texas Banking Act
b b b
The Texas Banking Act provides the statutory framework for the regulation and
b b b b b b b b b b b
supervision of state-chartered banks in Texas.
b b b b b b
2. Who appoints the Texas Banking Commissioner?
b b b b b
A. Texas Governor
b b
B. State Legislature
b b
C. Finance Commission of Texas
b b b b
D. Texas Supreme Court
b b b
C. Finance Commission of Texas
b b b b
,The Finance Commission of Texas appoints the Banking Commissioner, who
b b b b b b b b b
serves as the chief executive of the Texas Department of Banking.
b b b b b b b b b b b
3. Which of the following is NOT a primary responsibility of the Texas
b b b b b b b b b b b b
Department of Banking? b b
A. Supervising state-chartered banks
b b b
B. Regulating insurance companies
b b b
C. Licensing money services businesses
b b b b
D. Supervising trust companies
b b b
B. Regulating insurance companies
b b b
The regulation of insurance companies is handled by the Texas Department of
b b b b b b b b b b b b
Insurance, not the Texas Department of Banking.
b b b b b b
4. The Bank Secrecy Act (BSA) primarily addresses:
b b b b b b
A. Consumer lending disclosures
b b b
B. Deposit insurance
b b
C. Anti-money laundering compliance
b b b
D. Credit card interest rates
b b b b
C. Anti-money laundering compliance
b b b
The BSA focuses on preventing money laundering and requires banks to rep
b b b b b b b b b b b
ort suspicious activities.
b b
5. The threshold for filing a Currency Transaction Report (CTR) is:
b b b b b b b b b
A. $3,000
b
B. $5,000
b
C. $10,000
b
D. $20,000
b
C. $10,000
b
Banks must file a CTR for any transaction involving more than $10,000 in curren
b b b b b b b b b b b b b
cy in a single day.
b b b b
, 6. What is the maximum deposit insurance coverage provided by the
b b b b b b b b b b
FDIC per depositor, per bank?
b b b b
A. $100,000
b
B. $150,000
b
C. $250,000
b
D. $500,000
b
C. $250,000
b
The FDIC insures up to $250,000 per depositor, per insured bank, for each accou
b b b b b b b b b b b b b
nt ownership category.
b b
7. Which federal agency is primarily responsible for enforcing consumer
b b b b b b b b b
protection laws in financial services? b b b b
A. FDIC
b
B. OCC
b
C. CFPB
b
D. SEC
b
C. CFPB
b
The Consumer Financial Protection Bureau (CFPB) enforces consumer financ
b b b b b b b b
ial laws to ensure fairness in financial markets.
b b b b b b b
8. What is a key responsibility of a bank officer under the Texas Banking A
b b b b b b b b b b b b b
ct?
A. Drafting state legislation
b b b
B. Supervising the Texas Department of Insurance
b b b b b b
C. Ensuring the bank operates in a safe and sound manner
b b b b b b b b b b
D. Approving mergers between national banks
b b b b b
C. Ensuring the bank operates in a safe and sound manner
b b b b b b b b b b
Officers are responsible for maintaining the safety and soundness of the ba
b b b b b b b b b b b
nk under Texas regulations.
b b b
9. The Community Reinvestment Act (CRA) is designed to:
b b b b b b b
, A. Reduce interest rates
b b b
B. Prevent insider trading
b b b
C. Encourage lending in low- and moderate-income neighborhoods
b b b b b b b
D. Eliminate ATM fees
b b b
C. Encourage lending in low- and moderate-
b b b b b b
income neighborhoods CRA ensures that banks meet the credit needs of
b b b b b b b b b b
ball segments of their communities.
b b b b
10. A Texas bank must notify the Department of Banking of a branch c
b b b b b b b b b b b b
losure at least: b b
A. 10 days in advance
b b b b
B. 30 days in advance
b b b b
C. 60 days in advance
b b b b
D. 90 days in advance
b b b b
D. 90 days in advance
b b b b
Advance notice ensures transparency and regulatory oversight of branch closur
b b b b b b b b b
es.
11. Which law prohibits discrimination in credit transactions?
b b b b b b
A. Truth in Lending Act
b b b b
B. Equal Credit Opportunity Act
b b b b
C. CRA
b
D. RESPA
b
B. Equal Credit Opportunity Act
b b b b
The ECOA prohibits lenders from discriminating based on race, sex, religion,
b b b b b b b b b b
or national origin.
b b b
12. The Truth in Savings Act requires banks to:
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