NCCO EXAM STUDY GUIDE
ACTUAL EXAM QUESTIONS
WITH VERIFIED SOLUTIONS
BRAND NEW!
"Does the CFPB have examination authority over all credit unions? What determines whether
CFPB has supervisory and examination authority over a credit union? - CORRECT ANSWER=> Only
CU's with more then $10 billion in assets. CU's with $10 billion or less in assets are examined
and supervised by NCUA and, for state-chartered CU's, their state regulator. The CFPB's
examination and supervision powers are generally limited to the consumer laws and regulations
under its authority. NCUA will continue to examine all credit unions for safety and soundness.
Dodd-Frank"
"Are credit unions subject to the CFPB's Regulation DD? - CORRECT ANSWER=> The language of
the CFPB's Regulations DD is clear that it does not cover credit unions, stating it "applies to
depository institutions except for credit unions.""
"How do the CFPB's authority and objectives impact credit unions? - CORRECT ANSWER=> The
transfer of authority to the CFPB means that all credit unions need to comply with the bureau's
regulations. This requirement applies regardless of the size of the credit union. A credit union
with $15 million in assets is required to follow Regulation Z as well as a credit union with $250
million in assets."
"How does the NCUA's examination program differ from an audit? - CORRECT ANSWER=>
Program conducts risk focused examinations to determine area of risk to the CU's operational
and financial health.
Audit will asses how a CU is operating to date; a financial audit verifies the CU financial
statements."
Page | 1
, "What are the seven types of risk that NCUA examines for? - CORRECT ANSWER=> Credit Risk,
Liquidity Risk, Interest Rate Risk, Transaction Risk, Compliance Risk, Strategic Risk, Reputation
Risk."
"What are the various administrative tools available to NCUA, when may they be utilized, and
what is the severity of each? - CORRECT ANSWER=> Examiner's findings Document of Resolution
Letters of Understanding and Agreement Cease and Desist Order Others: Civil Money Penalty,
Prohibition Orders, Removal of Officer(s)"
"What are the six components that make up the CAMELS system? - CORRECT ANSWER=> Capital
Adequacy Asset Quality Management Earnings Liquidity and Asset Liability Management"
"In what format can credit unions file quarterly call reports and profile data with NCUA? -
CORRECT ANSWER=> Electronically using the NCUA's information management system or other
electronic means specified by the agency."
"What is the difference between the NCUA and CFPB authority when it comes to examining
credit unions? - CORRECT ANSWER=> NCUA - all federally insured CU's and the CFPB is
empowered to examine federally insured CUs with assets greater than $10 billion and their
affiliates."
"What are the benefits of the credit union membership? - CORRECT ANSWER=> Members own
the credit union, members exercise democratic control of the CU, right to vote - each member
has equal voting power: one share, one vote, Right to inspect - Members have right to inspect
bylaws and charter and upon petition, members may inspect CU books and records, including
board minute and accounting records."
"Can credit unions provide health insurance to directors during their time on the board? -
CORRECT ANSWER=> Credit Unions may provide directors with reasonable health insurance."
"What is the basic structure of a federal credit union's board of directors? How often must they
meet? - CORRECT ANSWER=> May consist of an odd number between 5 and 15, composition
should reflect the CU's membership, term are for two or three years. Positions - Chair, One or
more Vice Chairs, Financial Officer and Secretary. They should meet at least once a month. At
least one in person, regular meeting each year must be held in person."
"What are the main responsibilities of the Supervisory Committee? - CORRECT ANSWER=> The
committee should review the performance of the FCU, its officials and employees, and make
Page | 2
ACTUAL EXAM QUESTIONS
WITH VERIFIED SOLUTIONS
BRAND NEW!
"Does the CFPB have examination authority over all credit unions? What determines whether
CFPB has supervisory and examination authority over a credit union? - CORRECT ANSWER=> Only
CU's with more then $10 billion in assets. CU's with $10 billion or less in assets are examined
and supervised by NCUA and, for state-chartered CU's, their state regulator. The CFPB's
examination and supervision powers are generally limited to the consumer laws and regulations
under its authority. NCUA will continue to examine all credit unions for safety and soundness.
Dodd-Frank"
"Are credit unions subject to the CFPB's Regulation DD? - CORRECT ANSWER=> The language of
the CFPB's Regulations DD is clear that it does not cover credit unions, stating it "applies to
depository institutions except for credit unions.""
"How do the CFPB's authority and objectives impact credit unions? - CORRECT ANSWER=> The
transfer of authority to the CFPB means that all credit unions need to comply with the bureau's
regulations. This requirement applies regardless of the size of the credit union. A credit union
with $15 million in assets is required to follow Regulation Z as well as a credit union with $250
million in assets."
"How does the NCUA's examination program differ from an audit? - CORRECT ANSWER=>
Program conducts risk focused examinations to determine area of risk to the CU's operational
and financial health.
Audit will asses how a CU is operating to date; a financial audit verifies the CU financial
statements."
Page | 1
, "What are the seven types of risk that NCUA examines for? - CORRECT ANSWER=> Credit Risk,
Liquidity Risk, Interest Rate Risk, Transaction Risk, Compliance Risk, Strategic Risk, Reputation
Risk."
"What are the various administrative tools available to NCUA, when may they be utilized, and
what is the severity of each? - CORRECT ANSWER=> Examiner's findings Document of Resolution
Letters of Understanding and Agreement Cease and Desist Order Others: Civil Money Penalty,
Prohibition Orders, Removal of Officer(s)"
"What are the six components that make up the CAMELS system? - CORRECT ANSWER=> Capital
Adequacy Asset Quality Management Earnings Liquidity and Asset Liability Management"
"In what format can credit unions file quarterly call reports and profile data with NCUA? -
CORRECT ANSWER=> Electronically using the NCUA's information management system or other
electronic means specified by the agency."
"What is the difference between the NCUA and CFPB authority when it comes to examining
credit unions? - CORRECT ANSWER=> NCUA - all federally insured CU's and the CFPB is
empowered to examine federally insured CUs with assets greater than $10 billion and their
affiliates."
"What are the benefits of the credit union membership? - CORRECT ANSWER=> Members own
the credit union, members exercise democratic control of the CU, right to vote - each member
has equal voting power: one share, one vote, Right to inspect - Members have right to inspect
bylaws and charter and upon petition, members may inspect CU books and records, including
board minute and accounting records."
"Can credit unions provide health insurance to directors during their time on the board? -
CORRECT ANSWER=> Credit Unions may provide directors with reasonable health insurance."
"What is the basic structure of a federal credit union's board of directors? How often must they
meet? - CORRECT ANSWER=> May consist of an odd number between 5 and 15, composition
should reflect the CU's membership, term are for two or three years. Positions - Chair, One or
more Vice Chairs, Financial Officer and Secretary. They should meet at least once a month. At
least one in person, regular meeting each year must be held in person."
"What are the main responsibilities of the Supervisory Committee? - CORRECT ANSWER=> The
committee should review the performance of the FCU, its officials and employees, and make
Page | 2
