COMMUNITY REINVESTMENT ACT (CRA) TEST WITH
ALL CORRECT & 100% VERIFIED ANSWERS|UPDATED
TO PASS
Purpose and Coverage ✔Correct Answer-CRA is designed to encourage banks to meet the needs of
their communities, including low and moderate income (LMI) groups.
CRA covers all institutions governed by FDIC.
CRA Tests ✔Correct Answer-Three ways to meet LMI groups:
1. Lending
2. Investment
3. Service
The rating scheme for CRA evaluations is:
1. Outstanding
2. Satisfactory
3. Needs to Improve
4. Substantial Non-Compliance
Three Sizes of Banks:
1. Small Banks: as of December 31 of either of the prior two years, has assets of less than $313
million
2. Intermediate Banks: Assets between $313 million and $1.252 billion
3. Large Banks.
CRA Assessment Area ✔Correct Answer-1. One or more Metropolitan Statistical Areas (MSA),
metropolitan divisions, or one or more contiguous political subdivision.
2. Must include geographies in which the bank has the main office, branches and deposit taking
ATMs.
3. Include surrounding areas where the bank has originated a substantial portion of its loans.
CRA Assessment Area - Limitations ✔Correct Answer-1. The area must consist of whole
geographies (census tracts).
2. Cannot reflect illegal discrimination.
3. Cannot arbitrarily exclude LMI.
4. Cannot extend substantially beyond the MSA or state boundaries (unless the bank does substantial
business in those surrounding areas)
5. Must be an assessment area for each state where the bank does business.
CRA Loan Data Reported - Small Business Loans ✔Correct Answer-1. Loans of $1 million or less to a
business.
a. The size of the business DOES NOT matter.
b. The size of the LOAN drives the reporting requirement.
ALL CORRECT & 100% VERIFIED ANSWERS|UPDATED
TO PASS
Purpose and Coverage ✔Correct Answer-CRA is designed to encourage banks to meet the needs of
their communities, including low and moderate income (LMI) groups.
CRA covers all institutions governed by FDIC.
CRA Tests ✔Correct Answer-Three ways to meet LMI groups:
1. Lending
2. Investment
3. Service
The rating scheme for CRA evaluations is:
1. Outstanding
2. Satisfactory
3. Needs to Improve
4. Substantial Non-Compliance
Three Sizes of Banks:
1. Small Banks: as of December 31 of either of the prior two years, has assets of less than $313
million
2. Intermediate Banks: Assets between $313 million and $1.252 billion
3. Large Banks.
CRA Assessment Area ✔Correct Answer-1. One or more Metropolitan Statistical Areas (MSA),
metropolitan divisions, or one or more contiguous political subdivision.
2. Must include geographies in which the bank has the main office, branches and deposit taking
ATMs.
3. Include surrounding areas where the bank has originated a substantial portion of its loans.
CRA Assessment Area - Limitations ✔Correct Answer-1. The area must consist of whole
geographies (census tracts).
2. Cannot reflect illegal discrimination.
3. Cannot arbitrarily exclude LMI.
4. Cannot extend substantially beyond the MSA or state boundaries (unless the bank does substantial
business in those surrounding areas)
5. Must be an assessment area for each state where the bank does business.
CRA Loan Data Reported - Small Business Loans ✔Correct Answer-1. Loans of $1 million or less to a
business.
a. The size of the business DOES NOT matter.
b. The size of the LOAN drives the reporting requirement.
