CRCM - Practice Exam 2025/2026 Exam
Questions with Detailed Verified
Answers (100% Correct Answers) |
Already Graded A+
In which of the following situations is a bank required by federal regulation
to verify and record the identity of the customer?
a. An established customer asks to withdraw $5,000 from his checking
account and asks that the withdrawal be issued in the form of a cashier's
check
b. An established customer purchases $2,000 worth of traveler's checks
using cash to pay for the purchase
c. An individual uses cash to purchase traveler's checks totaling $2,000
and, at the same time, uses cash to purchase a cashier's check for $3,000
d. A customer deposits $6,000 in cash to her savings account - 🧠ANSWER
✔✔c. An individual uses cash to purchase traveler's checks totaling $2,000
and, at the same time, uses cash to purchase a cashier's check for $3,000
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,A financial institution is establishing a new relationship with an insurance
brokerage firm to offer insurance products. The relationship was
established with no involvement from the bank's compliance department.
Which action would BEST prevent a breakdown in compliance with
insurance sales regulations?
a. Reviewing applications for credit to ensure conditions for purchasing a
life insurance policy are included
b. Reviewing referral arrangements to ensure sales transactions include
anti-coercion and solicitation provisions
c. Reviewing disclosure requirements to ensure sales transactions by
telephone include written acknowledgment by consumers
d. Reviewing disclosure requirements to ensure sales transactions by mail
include providing disclosures orally to consumers - 🧠ANSWER ✔✔b.
Reviewing referral arrangements to ensure sales transactions include anti-
coercion and solicitation provisions
Which of the following is MOST concerning when reviewing quarterly Home
Mortgage Disclosure Act (Regulation C) reports?
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
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,A. Bulk purchases are included in the report
B. The quarterly error rate is consistent with prior quarters
C. Commercial loans are excluded from the report
D. Preapprovals are included if part of a formal program - 🧠ANSWER ✔✔C.
Commercial loans are excluded from the report
A new compliance professional learns that the bank submitted last year's
CRA data and took six months to correct all the mistakes. What is the
BEST way to respond to this issue?
A. Develop a plan to start reviewing the current year's CRA data and
monitor the errors and come up with ways to prevent future errors
B. Develop a plan to first submit the current year's CRA data to get all the
errors corrected in less than six months next year
C. Develop a plan to start reviewing the current year's CRA data after
December 31 and monitor the errors and fix all the mistakes before the
data is submitted
D. Develop a plan to start reviewing the current year's CRA data but wait
until receiving an error report to fix the errors - 🧠ANSWER ✔✔A. Develop a
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, plan to start reviewing the current year's CRA data and monitor the errors
and come up with ways to prevent future errors
Which three components compose the compliance risk assessment
process?
A. Identifying compliance risk, evaluating the likelihood and impact of the
risk, and evaluating risk management controls
B. Identifying inherent risk, evaluating risk management controls, and
measuring residual risk
C. Identifying inherent risk, evaluating the likelihood and impact of the risk,
and measuring residual risk
D. Identifying risk of consumer harm, evaluating risk management controls,
and measuring residual risk - 🧠ANSWER ✔✔B. Identifying inherent risk,
evaluating risk management controls, and measuring residual risk
A compliance professional has been tasked with preparing the lines of
business for an important regulatory change. Which step should be taken
FIRST?
A. Draft job-specific training to be delivered to impacted lines of business
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
Questions with Detailed Verified
Answers (100% Correct Answers) |
Already Graded A+
In which of the following situations is a bank required by federal regulation
to verify and record the identity of the customer?
a. An established customer asks to withdraw $5,000 from his checking
account and asks that the withdrawal be issued in the form of a cashier's
check
b. An established customer purchases $2,000 worth of traveler's checks
using cash to pay for the purchase
c. An individual uses cash to purchase traveler's checks totaling $2,000
and, at the same time, uses cash to purchase a cashier's check for $3,000
d. A customer deposits $6,000 in cash to her savings account - 🧠ANSWER
✔✔c. An individual uses cash to purchase traveler's checks totaling $2,000
and, at the same time, uses cash to purchase a cashier's check for $3,000
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,A financial institution is establishing a new relationship with an insurance
brokerage firm to offer insurance products. The relationship was
established with no involvement from the bank's compliance department.
Which action would BEST prevent a breakdown in compliance with
insurance sales regulations?
a. Reviewing applications for credit to ensure conditions for purchasing a
life insurance policy are included
b. Reviewing referral arrangements to ensure sales transactions include
anti-coercion and solicitation provisions
c. Reviewing disclosure requirements to ensure sales transactions by
telephone include written acknowledgment by consumers
d. Reviewing disclosure requirements to ensure sales transactions by mail
include providing disclosures orally to consumers - 🧠ANSWER ✔✔b.
Reviewing referral arrangements to ensure sales transactions include anti-
coercion and solicitation provisions
Which of the following is MOST concerning when reviewing quarterly Home
Mortgage Disclosure Act (Regulation C) reports?
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,A. Bulk purchases are included in the report
B. The quarterly error rate is consistent with prior quarters
C. Commercial loans are excluded from the report
D. Preapprovals are included if part of a formal program - 🧠ANSWER ✔✔C.
Commercial loans are excluded from the report
A new compliance professional learns that the bank submitted last year's
CRA data and took six months to correct all the mistakes. What is the
BEST way to respond to this issue?
A. Develop a plan to start reviewing the current year's CRA data and
monitor the errors and come up with ways to prevent future errors
B. Develop a plan to first submit the current year's CRA data to get all the
errors corrected in less than six months next year
C. Develop a plan to start reviewing the current year's CRA data after
December 31 and monitor the errors and fix all the mistakes before the
data is submitted
D. Develop a plan to start reviewing the current year's CRA data but wait
until receiving an error report to fix the errors - 🧠ANSWER ✔✔A. Develop a
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, plan to start reviewing the current year's CRA data and monitor the errors
and come up with ways to prevent future errors
Which three components compose the compliance risk assessment
process?
A. Identifying compliance risk, evaluating the likelihood and impact of the
risk, and evaluating risk management controls
B. Identifying inherent risk, evaluating risk management controls, and
measuring residual risk
C. Identifying inherent risk, evaluating the likelihood and impact of the risk,
and measuring residual risk
D. Identifying risk of consumer harm, evaluating risk management controls,
and measuring residual risk - 🧠ANSWER ✔✔B. Identifying inherent risk,
evaluating risk management controls, and measuring residual risk
A compliance professional has been tasked with preparing the lines of
business for an important regulatory change. Which step should be taken
FIRST?
A. Draft job-specific training to be delivered to impacted lines of business
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
