CRCM FINAL TEST EXAM 2025
QUESTIONS AND ANSWERS
Instructions to executive officers regarding their reporting obligations under Regulation O
should NOT include ____________. - ANS Completing the annual report of indebtedness to
correspondent banks.
Reg O:
A customer who has preauthorized transfers made on the 15th of each month to the utility
company, sent written notification to the bank on the 5th of the current month that he wanted
to discontinue the automatic transfers. The bank received the customer's notification on the
7th. On the 20th of the month, the customer telephoned to state that his account balance
indicated that payment was NOT stopped. The bank should advise the customer that
____________. - ANS The account will be credited promptly.
Reg E:
When reviewing exemptions for continued eligibility under the Bank Secrecy Act, a review of
which of the following is LEAST helpful? - ANS Currency Transaction Reports CRTs
AML not BSA
When conducting an audit of IRS tax compliance procedures, you should select a sample of
which of the following forms? - ANS 1099A
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,IRS Regs
In monitoring a bank's compliance with the federal Fair Housing Act, it is LEAST relevant to
review ____________. - ANS Handicap accessibility to property secured by a first mortgage
loan made by the bank.
Fair Housing Act:
One purpose of CRA Regulations is to ____________. - ANS Encourage banks to help meet
the credit needs of their local community.
CRA
A recent regulatory change increased the amount of FDIC insurance coverage for individual
depositors. The compliance manager should FIRST _____________. - ANS update the
employee manual
not develop a new policy or revise internal monitoring schedules in this area.
Compliance Management
Under CRA rules, banks other than small banks must report which of the following types of
loans? - ANS Loans to small farms
CRA rules
National Bank is headquartered in Colorado and has branches in Nebraska and Wyoming that it
acquired two years ago. Each year the federal regulatory agencies publish the host state loan-
to-deposit ratios for each state, which are used to determine if banks with interstate branches
are in compliance with the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994.
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, To comply with the Act, the National Bank must: - ANS Have a loan-to-deposit ratio in each
state that equals or exceeds 50% of the loan-to-deposit ratio of each host state.
Riegle-Neal
The bank is beginning e-banking and wants to deliver a full range of consumer electronic
services. The compliance manager is a member of the project team. Which of the following
functions is MOST appropriate for the compliance manager during the INITIAL stages of this
project? - ANS ID the consumer protection regulatory provisions on liability and error
resolution.
Compliance Management
Which of the following statements describes a bank's reporting requirements when it awards a
big-screen television, valued at $800, to a customer as a grand-opening prize? - ANS The fair
market value of the prize is reportable on Form 1099 MISC
IRS regs
An internal audit reveals APR calculation issues. In responding, you should FIRST ____________.
- ANS Perform a root cause analysis
Compliance Management
During a review of your bank's customer identification procedures, you are likely to find
regulatory deficiencies if the bank does NOT ____________. - ANS Require verification of the
identity of each customer.
AML? CIP
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 3
QUESTIONS AND ANSWERS
Instructions to executive officers regarding their reporting obligations under Regulation O
should NOT include ____________. - ANS Completing the annual report of indebtedness to
correspondent banks.
Reg O:
A customer who has preauthorized transfers made on the 15th of each month to the utility
company, sent written notification to the bank on the 5th of the current month that he wanted
to discontinue the automatic transfers. The bank received the customer's notification on the
7th. On the 20th of the month, the customer telephoned to state that his account balance
indicated that payment was NOT stopped. The bank should advise the customer that
____________. - ANS The account will be credited promptly.
Reg E:
When reviewing exemptions for continued eligibility under the Bank Secrecy Act, a review of
which of the following is LEAST helpful? - ANS Currency Transaction Reports CRTs
AML not BSA
When conducting an audit of IRS tax compliance procedures, you should select a sample of
which of the following forms? - ANS 1099A
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 1
,IRS Regs
In monitoring a bank's compliance with the federal Fair Housing Act, it is LEAST relevant to
review ____________. - ANS Handicap accessibility to property secured by a first mortgage
loan made by the bank.
Fair Housing Act:
One purpose of CRA Regulations is to ____________. - ANS Encourage banks to help meet
the credit needs of their local community.
CRA
A recent regulatory change increased the amount of FDIC insurance coverage for individual
depositors. The compliance manager should FIRST _____________. - ANS update the
employee manual
not develop a new policy or revise internal monitoring schedules in this area.
Compliance Management
Under CRA rules, banks other than small banks must report which of the following types of
loans? - ANS Loans to small farms
CRA rules
National Bank is headquartered in Colorado and has branches in Nebraska and Wyoming that it
acquired two years ago. Each year the federal regulatory agencies publish the host state loan-
to-deposit ratios for each state, which are used to determine if banks with interstate branches
are in compliance with the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994.
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 2
, To comply with the Act, the National Bank must: - ANS Have a loan-to-deposit ratio in each
state that equals or exceeds 50% of the loan-to-deposit ratio of each host state.
Riegle-Neal
The bank is beginning e-banking and wants to deliver a full range of consumer electronic
services. The compliance manager is a member of the project team. Which of the following
functions is MOST appropriate for the compliance manager during the INITIAL stages of this
project? - ANS ID the consumer protection regulatory provisions on liability and error
resolution.
Compliance Management
Which of the following statements describes a bank's reporting requirements when it awards a
big-screen television, valued at $800, to a customer as a grand-opening prize? - ANS The fair
market value of the prize is reportable on Form 1099 MISC
IRS regs
An internal audit reveals APR calculation issues. In responding, you should FIRST ____________.
- ANS Perform a root cause analysis
Compliance Management
During a review of your bank's customer identification procedures, you are likely to find
regulatory deficiencies if the bank does NOT ____________. - ANS Require verification of the
identity of each customer.
AML? CIP
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 3
