CRA1 - COMMUNITY REINVESTMENT ACT (LATEST
UPDATE) REAL QUESTIONS AND VERIFIED ANSWERS |
100% CORRECT | ALREADY GRADED
c.
A, B, and D are incorrect because they do not include all of the correct
ratings used by CRA to report examination results. Ans✓✓✓ 1. The
results of the CRA examinations are reported by ratings categories.
What are the CRA ratings?
A. Excellent, reasonable, needs to improve, probationary
noncompliance
B. Notable, satisfactory, needs to advance, significant noncompliance
C. Outstanding, satisfactory, needs to improve, substantial
noncompliance
D. Exceptional, acceptable, needs to improve, substantial
noncompliance
ID:482F0CBD958C4A1387E89E58F0D08141
b.
A, C, and D are incorrect because the purpose of the CRA rating is to
reflect how an institution is meeting its responsibilities to the community
it serves. Ans✓✓✓ 2. Everywhere Bank has received its CRA rating.
The rating reflects how Everywhere Bank is meeting its responsibilities
to whom?
A. HMDA
,B. Community it serves
C. Federal Reserve
D. FFIEC
ID:51B174A4A9B9421B8AB85D629717439D
b.
A is incorrect because CRA does not negate the efforts of a financial
institution to make safe and sound credit decisions. C is incorrect
because CRA does not dictate the types of loans financial institutions
must make. D is incorrect because CRA does not set a quota for the
number of loans that must be approved. Ans✓✓✓ 3. Which statement
best describes the primary purpose of the CRA?
A. Encourages financial institutions to approve loans to low- and
moderate-income individuals
B. Encourages financial institutions to help meet the credit needs of the
assessment area(s) they serve
C. Encourages financial institutions to make certain types of loans
available to low- and moderate-income individuals
D. Encourages financial institutions to approve a required number of
loans based on the population of the assessment area they serve
ID:8DB66A4534CE4EB2AB8C028564AC26EF
b.
, A is incorrect because they are not evaluated under the small or large
bank tests. C is incorrect because it can cover the entire institution's
performance or just a single assessment area. D is incorrect because it
will be examined using the appropriate test for large or small institutions
if it includes such an option in its approved strategic plan. Ans✓✓✓ 4.
Under CRA rules, institutions can choose to develop their own CRA
strategic plan and be evaluated for CRA performance based on how well
they meet the goals in that plan. Which statement is true concerning
strategic plans?
A. If an institution chooses the strategic plan option, they are evaluated
under the small or large bank tests
B. The strategic plan option must address the lending, investment, and
service criteria that would have been part of the usual evaluation
C. The strategic plan must cover the entire institution's performance
D. If an institution does not receive at least a satisfactory rating in a
CRA examination using its strategic plan, it will be rated again using its
strategic plan
ID:A0A4DDFAF37342C8A6CCBBB04FE037D3
a.
B is incorrect because the emphasis was placed on the performance of
the financial institution. C is incorrect because this split occurred in the
2005-2006 changes. D is incorrect because this definition was changed
in the 2005-2006 changes. Ans✓✓✓ 5. Which statement best describes
the 1995 revisions made to the focus of the CRA?
A. Greater emphasis on CRA performance of the financial institution
and less emphasis on its CRA process
UPDATE) REAL QUESTIONS AND VERIFIED ANSWERS |
100% CORRECT | ALREADY GRADED
c.
A, B, and D are incorrect because they do not include all of the correct
ratings used by CRA to report examination results. Ans✓✓✓ 1. The
results of the CRA examinations are reported by ratings categories.
What are the CRA ratings?
A. Excellent, reasonable, needs to improve, probationary
noncompliance
B. Notable, satisfactory, needs to advance, significant noncompliance
C. Outstanding, satisfactory, needs to improve, substantial
noncompliance
D. Exceptional, acceptable, needs to improve, substantial
noncompliance
ID:482F0CBD958C4A1387E89E58F0D08141
b.
A, C, and D are incorrect because the purpose of the CRA rating is to
reflect how an institution is meeting its responsibilities to the community
it serves. Ans✓✓✓ 2. Everywhere Bank has received its CRA rating.
The rating reflects how Everywhere Bank is meeting its responsibilities
to whom?
A. HMDA
,B. Community it serves
C. Federal Reserve
D. FFIEC
ID:51B174A4A9B9421B8AB85D629717439D
b.
A is incorrect because CRA does not negate the efforts of a financial
institution to make safe and sound credit decisions. C is incorrect
because CRA does not dictate the types of loans financial institutions
must make. D is incorrect because CRA does not set a quota for the
number of loans that must be approved. Ans✓✓✓ 3. Which statement
best describes the primary purpose of the CRA?
A. Encourages financial institutions to approve loans to low- and
moderate-income individuals
B. Encourages financial institutions to help meet the credit needs of the
assessment area(s) they serve
C. Encourages financial institutions to make certain types of loans
available to low- and moderate-income individuals
D. Encourages financial institutions to approve a required number of
loans based on the population of the assessment area they serve
ID:8DB66A4534CE4EB2AB8C028564AC26EF
b.
, A is incorrect because they are not evaluated under the small or large
bank tests. C is incorrect because it can cover the entire institution's
performance or just a single assessment area. D is incorrect because it
will be examined using the appropriate test for large or small institutions
if it includes such an option in its approved strategic plan. Ans✓✓✓ 4.
Under CRA rules, institutions can choose to develop their own CRA
strategic plan and be evaluated for CRA performance based on how well
they meet the goals in that plan. Which statement is true concerning
strategic plans?
A. If an institution chooses the strategic plan option, they are evaluated
under the small or large bank tests
B. The strategic plan option must address the lending, investment, and
service criteria that would have been part of the usual evaluation
C. The strategic plan must cover the entire institution's performance
D. If an institution does not receive at least a satisfactory rating in a
CRA examination using its strategic plan, it will be rated again using its
strategic plan
ID:A0A4DDFAF37342C8A6CCBBB04FE037D3
a.
B is incorrect because the emphasis was placed on the performance of
the financial institution. C is incorrect because this split occurred in the
2005-2006 changes. D is incorrect because this definition was changed
in the 2005-2006 changes. Ans✓✓✓ 5. Which statement best describes
the 1995 revisions made to the focus of the CRA?
A. Greater emphasis on CRA performance of the financial institution
and less emphasis on its CRA process
