CRCM - Practice Exam Questions With
// // // // //
Correct Answers
// //
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 //- //correct //answer(s) //✔✔
//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
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 //- //correct //answer(s) //✔✔ //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?
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 //- //correct //answer(s) //✔✔ //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 //- //correct //answer(s) //✔✔ //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
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 //- //correct //answer(s) //✔✔ //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
B. //Identify //impacted //lines //of //business //and //develop //a //team //of //key //stakeholders
C. //Confirm //readiness //to //implement //revised //guidance //on //the //part //of //the //bank's //platform
//software //provider
D. //Research, //review, //and //then //provide //a //summary //of //the //impact //to //the //lines //of
//business //- //correct //answer(s) //✔✔ //D. //Research, //review, //and //then //provide //a //summary //of
//the //impact //to //the //lines //of //business
When //evaluating //a //bank's //Home //Mortgage //Disclosure //Act //(Regulation //C) //platform,
//which //of //the //following //would //be //a //concern?
A. //Whether //the //data //is //complete //and //accurate
B. //Whether //the //unique //identifier //is //sequential
C. //Whether //the //system //includes //unsecured //loans
D. //Whether //the //information //is //maintained //for //seven //years //- //correct //answer(s) //✔✔ //A.
//Whether //the //data //is //complete //and //accurate
Which //concerns //the //compliance //professional //the //MOST //about //a //bank's //performance
//when //preparing //for //a //CRA //examination?
A. //Investments //generally //consist //of //simple //traditional //assets
B. //Language //services //include //commonly //spoken //languages
C. //Lending //includes //mortgage //loans //from //a //nondepository //affiliate
, D. //Branch //expansion //includes //five //new //locations, //two //in //low- //and //moderate-income
//geographies //- //correct //answer(s) //✔✔ //A. //Investments //generally //consist //of //simple
//traditional //assets
In //a //review //of //procedures, //which //of //the //following //poses //the //GREATEST //risk?
A. //The //procedures //contain //factors //used //to //determine //exception //approval
B. //Requests //for //exceptions //are //tracked //via //an //Excel //spreadsheet
C. //Exceptions //are //requested //by //loan //officers //rather //than //customers
D. //The //call //center //allows //for //a //waiver //of //two //service //fees //per //year //- //correct //answer(s)
✔✔ //C. //Exceptions //are //requested //by //loan //officers //rather //than //customers
//
Which //action //on //the //part //of //the //loan //officer //might //be //the //basis //for //a //violation //of //the
//Equal //Credit //Opportunity //Act?
A. //Not //having //a //branch //open //on //Saturdays
B. //Failing //to //stand //and //shake //the //applicant's //hand
C. //Requiring //all //applications //to //be //submitted //in //writing
D. //Establishing //a //minimum //income //amount //of //$30,000 //- //correct //answer(s) //✔✔ //D.
//Establishing //a //minimum //income //amount //of //$30,000
Who //would //benefit //the //MOST //from //training //pertaining //to //the //Children's //Online //Privacy
//Protection //Act?
A. //Personal //bankers
B. //Mortgage //lenders
C. //Marketing //staff
D. //Technology //team //- //correct //answer(s) //✔✔ //C. //Marketing //staff
What //is //the //MOST //important //concept //for //mortgage //officers //to //understand //during
//training?
// // // // //
Correct Answers
// //
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 //- //correct //answer(s) //✔✔
//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
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 //- //correct //answer(s) //✔✔ //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?
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 //- //correct //answer(s) //✔✔ //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 //- //correct //answer(s) //✔✔ //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
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 //- //correct //answer(s) //✔✔ //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
B. //Identify //impacted //lines //of //business //and //develop //a //team //of //key //stakeholders
C. //Confirm //readiness //to //implement //revised //guidance //on //the //part //of //the //bank's //platform
//software //provider
D. //Research, //review, //and //then //provide //a //summary //of //the //impact //to //the //lines //of
//business //- //correct //answer(s) //✔✔ //D. //Research, //review, //and //then //provide //a //summary //of
//the //impact //to //the //lines //of //business
When //evaluating //a //bank's //Home //Mortgage //Disclosure //Act //(Regulation //C) //platform,
//which //of //the //following //would //be //a //concern?
A. //Whether //the //data //is //complete //and //accurate
B. //Whether //the //unique //identifier //is //sequential
C. //Whether //the //system //includes //unsecured //loans
D. //Whether //the //information //is //maintained //for //seven //years //- //correct //answer(s) //✔✔ //A.
//Whether //the //data //is //complete //and //accurate
Which //concerns //the //compliance //professional //the //MOST //about //a //bank's //performance
//when //preparing //for //a //CRA //examination?
A. //Investments //generally //consist //of //simple //traditional //assets
B. //Language //services //include //commonly //spoken //languages
C. //Lending //includes //mortgage //loans //from //a //nondepository //affiliate
, D. //Branch //expansion //includes //five //new //locations, //two //in //low- //and //moderate-income
//geographies //- //correct //answer(s) //✔✔ //A. //Investments //generally //consist //of //simple
//traditional //assets
In //a //review //of //procedures, //which //of //the //following //poses //the //GREATEST //risk?
A. //The //procedures //contain //factors //used //to //determine //exception //approval
B. //Requests //for //exceptions //are //tracked //via //an //Excel //spreadsheet
C. //Exceptions //are //requested //by //loan //officers //rather //than //customers
D. //The //call //center //allows //for //a //waiver //of //two //service //fees //per //year //- //correct //answer(s)
✔✔ //C. //Exceptions //are //requested //by //loan //officers //rather //than //customers
//
Which //action //on //the //part //of //the //loan //officer //might //be //the //basis //for //a //violation //of //the
//Equal //Credit //Opportunity //Act?
A. //Not //having //a //branch //open //on //Saturdays
B. //Failing //to //stand //and //shake //the //applicant's //hand
C. //Requiring //all //applications //to //be //submitted //in //writing
D. //Establishing //a //minimum //income //amount //of //$30,000 //- //correct //answer(s) //✔✔ //D.
//Establishing //a //minimum //income //amount //of //$30,000
Who //would //benefit //the //MOST //from //training //pertaining //to //the //Children's //Online //Privacy
//Protection //Act?
A. //Personal //bankers
B. //Mortgage //lenders
C. //Marketing //staff
D. //Technology //team //- //correct //answer(s) //✔✔ //C. //Marketing //staff
What //is //the //MOST //important //concept //for //mortgage //officers //to //understand //during
//training?
