CRCM SAMPLE EXAM 100 QUESTIONS AND
ANSWERS A RATED
1. 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?
A. Drafting The Content Of The Electronic Disclosures
B. Setting Reasonable And Competitive Fees For The Services Offered
C. Determining Which Products To Include In The Electronic Delivery System
D. Identifying The Consumer Protection Regulatory Provisions On Liability And Error
Resolution Correct Answer: D. Identifying The Consumer Protection Regulatory
Provisions On Liability And Error Resolution
2. You Have Learned That The Consumer Financial Protection Bureau Has Issued A
Proposed Regulation To Implement A Recently Enacted Federal Law. The Proposal
Would Have A Significant Adverse Impact On One Of The Financial Institution's
Existing Activities. You Have Prepared A Summary Of The Proposal For Management.
Which Of The Following Actions Is Most Appropriate For You To Take?
A. Wait To Distribute Information Until The Rule Is Final.
B. Distribute The Summary And Begin Efforts To Comply With The Proposed
Requirements.
C. Distribute The Summary And Advise That The Financial Institution May Send A
Comment Letter.
D. Distribute The Summary Along With Guidance On How To Lobby Congress To
Amend The Recent Law. Correct Answer: C. Distribute The Summary And Advise That
The Financial Institution May Send A Comment Letter.
,3. A Customer Presented $13,000 In Cash For Deposit To Her Account. She Withheld
$4,000 From The Transaction When The Teller Began To Complete A Ctr. In This
Situation, The Bank Should ____________.
A. File The Appropriate Sar Form With Respect To The Structured Transaction
B. Make An Entry In Its Log Of Cash Sales Of Monetary Instruments
C. File A Ctr For The $13,000 Transaction
D. Refuse The Transaction Correct Answer: A. File The Appropriate Sar Form With
Respect To The Structured Transaction
4. An Internal Fair Lending Review Indicated No Evidence Of Overt Discriminatory
Practices. However, 60% Of The Unsecured Loans Approved To Male Applicants Were
Charged Loan Fees That Were Lower Than The Bank's Policy, And Only 10% Of The
Female Applicants Received Reduced Loan Fees. There Was Insufficient Documentation
In The Credit Files To Justify These Pricing Differences. The Most Appropriate Action
The Compliance Officer Should Take Is To ____________.
A. Note The Event, But Indicate That No Overt Discrimination Was Found
B. Conduct A Complete Demographic And Regression Analysis To Determine The Full
Extent Of This Fair Lending Issue
C. Develop Specific Policy Provisions For Fee Exception Approvals And
Documentation, And Retrain Lending Personnel
D. Anticipate A Referral To The Department Of Justice On The Next Regulatory Exam
Due To Inconsistent Application Of Loan Policy That Has Resulted In Disparate Impact
Correct Answer: C. Develop Specific Policy Provisions For Fee Exception Approvals
And Documentation, And Retrain Lending Personnel
5. To Ensure That Your Institutions Policies And Procedures Are In Compliance With
Regulation B And Its Requirements Relating To Spousal Signatures, What Is The Most
Effective Action You, As The Compliance Officer, Should Take?
A. Research State Signature Requirements In All States In Which Customers Could
Reside Or Own Property And Prepare A Legal Brief For Management On The Findings
,B. Ensure That The Institution Adopts A Continuing Guarantee For All Commercial
Loans
C. Review Customer Complaints Relating To Spousal Signatures In The Lending
Department
D. Provide Periodic Training On Spousal Signature Requirements Of Regulation B To
Lending Staff Correct Answer: D. Provide Periodic Training On Spousal Signature
Requirements Of Regulation B To Lending Staff
6. A Bank Is Considering Changing Its Business Hours Of Operation. Currently,
Branches Arre Not Open On Saturdays And Sundays. The Bank Is Considering Opening
All Branches On Saturdays From 9:00 Am To 11:00 Am For Routine Teller Transactions
Through The Drive-Up Windows. The Loan Operations Manager Asks The Compliance
Manager How This Change Will Impact The Process For Mailing Consumer Loan
Disclosures To Customers For Mortgage Loans. The Compliance Manager Responds By
Explaining That:
A. The Change Will Require The Bank To Consider Saturday As A Business Day For
Purposes Of Delivering Loan Estimates To Consumers After Receipt Of An Application.
B. The Change Will Not Affect The Timing Of Delivery Of Loan Estimates To
Consumers After Receipt Of An Application.
C. The Change Will Affect The Timing Of Delivery Of Revised Loan Estimates To
Consumers After Receipt Of An Application.
D. The Change Will Require The Bank To Consider Saturday As A Business Day For
Purposes Of The 7 Day Waiting Period Prior To Loan Consummation. Correct Answer:
B. The Change Will Not Affect The Timing Of Delivery Of Loan Estimates To
Consumers After Receipt Of An Application.
7. An Auditor Asked For Your Guidance Regarding An Audit In Process. Review Of 20
Adverse Action Notices Revealed That 2 Were Sent Late, And 2 Did Not Show The
Name And Address Of The Credit Reporting Agency When Required By The Fair Credit
Reporting Act. Each Of The Errors Was Made By A Different Employee. Given These
Findings, You Should Advise The Auditor To ____________.
, A. Continue With The Audit, As This Is Not A Problem
B. Cite The Errors As Technical Exceptions
C. Review More Items To Determine A Root Cause Of The Problem
D. Read Regulation B And The Fair Credit Reporting Act For Guidance Correct
Answer: C. Review More Items To Determine A Root Cause Of The Problem
8. A Recent Regulatory Change Increased The Amount Of Fdic Insurance Coverage For
Individual Depositors. The Compliance Manager Should First _____________.
A. Develop A New Policy In This Area
B. Maintain The Current Program Without Change
C. Update The Content Of Employee Training Material
D. Revise The Internal Monitoring Schedule In This Area Correct Answer: C. Update
The Content Of Employee Training Material
9. The Bank Has Decided To Begin Offering A Full Range Of Non-Deposit Investment
Products To Retail Customers. Your First Step Should Be To ____________.
A. Review The State Insurance Licensing Requirements
B. Develop A Program To Obtain Series 6 & 7 Licenses For The Sales Staff
C. Develop New Account Forms That Include Processes To Determine Suitability
D. Review The Interagency Statement On The Retail Sale Of Nondeposit Investment
Products Correct Answer: D. Review The Interagency Statement On The Retail Sale Of
Nondeposit Investment Products
10. Anywhere Bank Is Receiving Frequent Complaints From Borrowers About Having
To Delay The Loan Closing Because A Copy Of The Appraisal Must Be Provided To
Them At Least Three Business Days Prior To Loan Consummation And Appraisals Are
Taking A Very Long Time In This Area. So, The Bank Has Decided To Allow
Borrowers To Waive Their Right To Receive A Copy Of The Appraisal As Follows:
A. Borrowers May Provide A Waiver In Writing As Long As It Is Received By The
Bank At Least Three Business Days Before Loan Consummation And As Long As The
Appraisal Is Provided To Them No Later Than At Loan Consummation
ANSWERS A RATED
1. 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?
A. Drafting The Content Of The Electronic Disclosures
B. Setting Reasonable And Competitive Fees For The Services Offered
C. Determining Which Products To Include In The Electronic Delivery System
D. Identifying The Consumer Protection Regulatory Provisions On Liability And Error
Resolution Correct Answer: D. Identifying The Consumer Protection Regulatory
Provisions On Liability And Error Resolution
2. You Have Learned That The Consumer Financial Protection Bureau Has Issued A
Proposed Regulation To Implement A Recently Enacted Federal Law. The Proposal
Would Have A Significant Adverse Impact On One Of The Financial Institution's
Existing Activities. You Have Prepared A Summary Of The Proposal For Management.
Which Of The Following Actions Is Most Appropriate For You To Take?
A. Wait To Distribute Information Until The Rule Is Final.
B. Distribute The Summary And Begin Efforts To Comply With The Proposed
Requirements.
C. Distribute The Summary And Advise That The Financial Institution May Send A
Comment Letter.
D. Distribute The Summary Along With Guidance On How To Lobby Congress To
Amend The Recent Law. Correct Answer: C. Distribute The Summary And Advise That
The Financial Institution May Send A Comment Letter.
,3. A Customer Presented $13,000 In Cash For Deposit To Her Account. She Withheld
$4,000 From The Transaction When The Teller Began To Complete A Ctr. In This
Situation, The Bank Should ____________.
A. File The Appropriate Sar Form With Respect To The Structured Transaction
B. Make An Entry In Its Log Of Cash Sales Of Monetary Instruments
C. File A Ctr For The $13,000 Transaction
D. Refuse The Transaction Correct Answer: A. File The Appropriate Sar Form With
Respect To The Structured Transaction
4. An Internal Fair Lending Review Indicated No Evidence Of Overt Discriminatory
Practices. However, 60% Of The Unsecured Loans Approved To Male Applicants Were
Charged Loan Fees That Were Lower Than The Bank's Policy, And Only 10% Of The
Female Applicants Received Reduced Loan Fees. There Was Insufficient Documentation
In The Credit Files To Justify These Pricing Differences. The Most Appropriate Action
The Compliance Officer Should Take Is To ____________.
A. Note The Event, But Indicate That No Overt Discrimination Was Found
B. Conduct A Complete Demographic And Regression Analysis To Determine The Full
Extent Of This Fair Lending Issue
C. Develop Specific Policy Provisions For Fee Exception Approvals And
Documentation, And Retrain Lending Personnel
D. Anticipate A Referral To The Department Of Justice On The Next Regulatory Exam
Due To Inconsistent Application Of Loan Policy That Has Resulted In Disparate Impact
Correct Answer: C. Develop Specific Policy Provisions For Fee Exception Approvals
And Documentation, And Retrain Lending Personnel
5. To Ensure That Your Institutions Policies And Procedures Are In Compliance With
Regulation B And Its Requirements Relating To Spousal Signatures, What Is The Most
Effective Action You, As The Compliance Officer, Should Take?
A. Research State Signature Requirements In All States In Which Customers Could
Reside Or Own Property And Prepare A Legal Brief For Management On The Findings
,B. Ensure That The Institution Adopts A Continuing Guarantee For All Commercial
Loans
C. Review Customer Complaints Relating To Spousal Signatures In The Lending
Department
D. Provide Periodic Training On Spousal Signature Requirements Of Regulation B To
Lending Staff Correct Answer: D. Provide Periodic Training On Spousal Signature
Requirements Of Regulation B To Lending Staff
6. A Bank Is Considering Changing Its Business Hours Of Operation. Currently,
Branches Arre Not Open On Saturdays And Sundays. The Bank Is Considering Opening
All Branches On Saturdays From 9:00 Am To 11:00 Am For Routine Teller Transactions
Through The Drive-Up Windows. The Loan Operations Manager Asks The Compliance
Manager How This Change Will Impact The Process For Mailing Consumer Loan
Disclosures To Customers For Mortgage Loans. The Compliance Manager Responds By
Explaining That:
A. The Change Will Require The Bank To Consider Saturday As A Business Day For
Purposes Of Delivering Loan Estimates To Consumers After Receipt Of An Application.
B. The Change Will Not Affect The Timing Of Delivery Of Loan Estimates To
Consumers After Receipt Of An Application.
C. The Change Will Affect The Timing Of Delivery Of Revised Loan Estimates To
Consumers After Receipt Of An Application.
D. The Change Will Require The Bank To Consider Saturday As A Business Day For
Purposes Of The 7 Day Waiting Period Prior To Loan Consummation. Correct Answer:
B. The Change Will Not Affect The Timing Of Delivery Of Loan Estimates To
Consumers After Receipt Of An Application.
7. An Auditor Asked For Your Guidance Regarding An Audit In Process. Review Of 20
Adverse Action Notices Revealed That 2 Were Sent Late, And 2 Did Not Show The
Name And Address Of The Credit Reporting Agency When Required By The Fair Credit
Reporting Act. Each Of The Errors Was Made By A Different Employee. Given These
Findings, You Should Advise The Auditor To ____________.
, A. Continue With The Audit, As This Is Not A Problem
B. Cite The Errors As Technical Exceptions
C. Review More Items To Determine A Root Cause Of The Problem
D. Read Regulation B And The Fair Credit Reporting Act For Guidance Correct
Answer: C. Review More Items To Determine A Root Cause Of The Problem
8. A Recent Regulatory Change Increased The Amount Of Fdic Insurance Coverage For
Individual Depositors. The Compliance Manager Should First _____________.
A. Develop A New Policy In This Area
B. Maintain The Current Program Without Change
C. Update The Content Of Employee Training Material
D. Revise The Internal Monitoring Schedule In This Area Correct Answer: C. Update
The Content Of Employee Training Material
9. The Bank Has Decided To Begin Offering A Full Range Of Non-Deposit Investment
Products To Retail Customers. Your First Step Should Be To ____________.
A. Review The State Insurance Licensing Requirements
B. Develop A Program To Obtain Series 6 & 7 Licenses For The Sales Staff
C. Develop New Account Forms That Include Processes To Determine Suitability
D. Review The Interagency Statement On The Retail Sale Of Nondeposit Investment
Products Correct Answer: D. Review The Interagency Statement On The Retail Sale Of
Nondeposit Investment Products
10. Anywhere Bank Is Receiving Frequent Complaints From Borrowers About Having
To Delay The Loan Closing Because A Copy Of The Appraisal Must Be Provided To
Them At Least Three Business Days Prior To Loan Consummation And Appraisals Are
Taking A Very Long Time In This Area. So, The Bank Has Decided To Allow
Borrowers To Waive Their Right To Receive A Copy Of The Appraisal As Follows:
A. Borrowers May Provide A Waiver In Writing As Long As It Is Received By The
Bank At Least Three Business Days Before Loan Consummation And As Long As The
Appraisal Is Provided To Them No Later Than At Loan Consummation
