CRA1 - COMMUNITY REINVESTMENT ACT EXAM WITH
ALL CORRECT & 100% VERIFIED ANSWERS|LATEST
UPDATE|ALREADY GRADED A+
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 ✔Correct Answer-c.
A, B, and D are incorrect because they do not include all of the correct ratings used by CRA to report
examination results.
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 ✔Correct Answer-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.
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 ✔Correct Answer-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.
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 ✔Correct Answer-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.
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
B. Greater emphasis was placed on the CRA process and less emphasis on the CRA performance of
the financial institution
C. A split occurred between the agencies
D. The definition of community development was changed
ID:83373CDAF02C4AA8B0454D4A0E4D60D0 ✔Correct Answer-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.
6. Financial institutions have the option of creating their own strategic plan for CRA evaluation.
Which statement best describes the development of a strategic plan?
A. Plan developed by the financial institution with input from the community and approval by the
primary federal regulator
B. Plan developed by a committee made up of federal regulators and employees of the financial
institution
C. Plan developed by the board of directors of the financial institution and approved by the federal
regulators
D. Plan developed by the community with approval by the financial institution and the federal
regulators
ID:ECABAFE12C2E46178811951C9D09659F ✔Correct Answer-a.
B, C, and D are incorrect because financial institutions who choose to be evaluated using the
strategic plan work with the community to create the plan which must be approved by their primary
federal regulator.
7. When intermediate small banks are evaluated, what type of performance standard do the
agencies generally use to determine its CRA rating?
A. Community development test
B. Lending, investment, and service tests
C. Small bank lending and community development tests
D. Service test
ID:05793B8EE9804D96848D96C3331AA3AF ✔Correct Answer-c.
A is incorrect because the community development test is generally used for wholesale or limited
purpose financial institutions or for intermediate small institutions. B is incorrect because the
lending, investment, and service test is generally used for large financial institutions. D is incorrect
because the service test is part of the performance standard generally used by large financial
institutions.
ALL CORRECT & 100% VERIFIED ANSWERS|LATEST
UPDATE|ALREADY GRADED A+
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 ✔Correct Answer-c.
A, B, and D are incorrect because they do not include all of the correct ratings used by CRA to report
examination results.
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 ✔Correct Answer-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.
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 ✔Correct Answer-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.
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 ✔Correct Answer-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.
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
B. Greater emphasis was placed on the CRA process and less emphasis on the CRA performance of
the financial institution
C. A split occurred between the agencies
D. The definition of community development was changed
ID:83373CDAF02C4AA8B0454D4A0E4D60D0 ✔Correct Answer-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.
6. Financial institutions have the option of creating their own strategic plan for CRA evaluation.
Which statement best describes the development of a strategic plan?
A. Plan developed by the financial institution with input from the community and approval by the
primary federal regulator
B. Plan developed by a committee made up of federal regulators and employees of the financial
institution
C. Plan developed by the board of directors of the financial institution and approved by the federal
regulators
D. Plan developed by the community with approval by the financial institution and the federal
regulators
ID:ECABAFE12C2E46178811951C9D09659F ✔Correct Answer-a.
B, C, and D are incorrect because financial institutions who choose to be evaluated using the
strategic plan work with the community to create the plan which must be approved by their primary
federal regulator.
7. When intermediate small banks are evaluated, what type of performance standard do the
agencies generally use to determine its CRA rating?
A. Community development test
B. Lending, investment, and service tests
C. Small bank lending and community development tests
D. Service test
ID:05793B8EE9804D96848D96C3331AA3AF ✔Correct Answer-c.
A is incorrect because the community development test is generally used for wholesale or limited
purpose financial institutions or for intermediate small institutions. B is incorrect because the
lending, investment, and service test is generally used for large financial institutions. D is incorrect
because the service test is part of the performance standard generally used by large financial
institutions.
