CRCM Final Test UPDATED ACTUAL
Exam Questions and CORRECT Answers
Completing the annual report of indebtedness to correspondent banks.
Reg O: - CORRECT ANSWER - Instructions to executive officers regarding their
reporting obligations under Regulation O should NOT include ____________.
The account will be credited promptly.
Reg E: - CORRECT ANSWER - A customer who has preauthorized transfers made on the
15th of each month to the utility company, sent written notification to the bank on the 5th of the
current month that he wanted to discontinue the automatic transfers. The bank received the
customer's notification on the 7th. On the 20th of the month, the customer telephoned to state
that his account balance indicated that payment was NOT stopped. The bank should advise the
customer that ____________.
Currency Transaction Reports CRTs
AML not BSA - CORRECT ANSWER - When reviewing exemptions for continued
eligibility under the Bank Secrecy Act, a review of which of the following is LEAST helpful?
1099A
IRS Regs - CORRECT ANSWER - When conducting an audit of IRS tax compliance
procedures, you should select a sample of which of the following forms?
Handicap accessibility to property secured by a first mortgage loan made by the bank.
Fair Housing Act: - CORRECT ANSWER - In monitoring a bank's compliance with the
federal Fair Housing Act, it is LEAST relevant to review ____________.
,Encourage banks to help meet the credit needs of their local community.
CRA - CORRECT ANSWER - One purpose of CRA Regulations is to ____________.
update the employee manual
not develop a new policy or revise internal monitoring schedules in this area.
Compliance Management - CORRECT ANSWER - A recent regulatory change increased
the amount of FDIC insurance coverage for individual depositors. The compliance manager
should FIRST _____________.
Loans to small farms
CRA rules - CORRECT ANSWER - Under CRA rules, banks other than small banks must
report which of the following types of loans?
Have a loan-to-deposit ratio in each state that equals or exceeds 50% of the loan-to-deposit ratio
of each host state.
Riegle-Neal - CORRECT ANSWER - National Bank is headquartered in Colorado and has
branches in Nebraska and Wyoming that it acquired two years ago. Each year the federal
regulatory agencies publish the host state loan-to-deposit ratios for each state, which are used to
determine if banks with interstate branches are in compliance with the Riegle-Neal Interstate
Banking and Branching Efficiency Act of 1994. To comply with the Act, the National Bank
must:
ID the consumer protection regulatory provisions on liability and error resolution.
, Compliance Management - CORRECT ANSWER - 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?
The fair market value of the prize is reportable on Form 1099 MISC
IRS regs - CORRECT ANSWER - Which of the following statements describes a bank's
reporting requirements when it awards a big-screen television, valued at $800, to a customer as a
grand-opening prize?
Perform a root cause analysis
Compliance Management - CORRECT ANSWER - An internal audit reveals APR
calculation issues. In responding, you should FIRST ____________.
Require verification of the identity of each customer.
AML? CIP - CORRECT ANSWER - During a review of your bank's customer
identification procedures, you are likely to find regulatory deficiencies if the bank does NOT
____________.
Obtain the TIN within a reasonable time after account opening.
BSA - CORRECT ANSWER - If the bank does not obtain the TIN from the deposit
account holder when the account is opened, the Bank Secrecy Act requires that the bank
____________.
Determine the number of mortgage loans your banks services together with any affiliates as of
the current date.
Exam Questions and CORRECT Answers
Completing the annual report of indebtedness to correspondent banks.
Reg O: - CORRECT ANSWER - Instructions to executive officers regarding their
reporting obligations under Regulation O should NOT include ____________.
The account will be credited promptly.
Reg E: - CORRECT ANSWER - A customer who has preauthorized transfers made on the
15th of each month to the utility company, sent written notification to the bank on the 5th of the
current month that he wanted to discontinue the automatic transfers. The bank received the
customer's notification on the 7th. On the 20th of the month, the customer telephoned to state
that his account balance indicated that payment was NOT stopped. The bank should advise the
customer that ____________.
Currency Transaction Reports CRTs
AML not BSA - CORRECT ANSWER - When reviewing exemptions for continued
eligibility under the Bank Secrecy Act, a review of which of the following is LEAST helpful?
1099A
IRS Regs - CORRECT ANSWER - When conducting an audit of IRS tax compliance
procedures, you should select a sample of which of the following forms?
Handicap accessibility to property secured by a first mortgage loan made by the bank.
Fair Housing Act: - CORRECT ANSWER - In monitoring a bank's compliance with the
federal Fair Housing Act, it is LEAST relevant to review ____________.
,Encourage banks to help meet the credit needs of their local community.
CRA - CORRECT ANSWER - One purpose of CRA Regulations is to ____________.
update the employee manual
not develop a new policy or revise internal monitoring schedules in this area.
Compliance Management - CORRECT ANSWER - A recent regulatory change increased
the amount of FDIC insurance coverage for individual depositors. The compliance manager
should FIRST _____________.
Loans to small farms
CRA rules - CORRECT ANSWER - Under CRA rules, banks other than small banks must
report which of the following types of loans?
Have a loan-to-deposit ratio in each state that equals or exceeds 50% of the loan-to-deposit ratio
of each host state.
Riegle-Neal - CORRECT ANSWER - National Bank is headquartered in Colorado and has
branches in Nebraska and Wyoming that it acquired two years ago. Each year the federal
regulatory agencies publish the host state loan-to-deposit ratios for each state, which are used to
determine if banks with interstate branches are in compliance with the Riegle-Neal Interstate
Banking and Branching Efficiency Act of 1994. To comply with the Act, the National Bank
must:
ID the consumer protection regulatory provisions on liability and error resolution.
, Compliance Management - CORRECT ANSWER - 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?
The fair market value of the prize is reportable on Form 1099 MISC
IRS regs - CORRECT ANSWER - Which of the following statements describes a bank's
reporting requirements when it awards a big-screen television, valued at $800, to a customer as a
grand-opening prize?
Perform a root cause analysis
Compliance Management - CORRECT ANSWER - An internal audit reveals APR
calculation issues. In responding, you should FIRST ____________.
Require verification of the identity of each customer.
AML? CIP - CORRECT ANSWER - During a review of your bank's customer
identification procedures, you are likely to find regulatory deficiencies if the bank does NOT
____________.
Obtain the TIN within a reasonable time after account opening.
BSA - CORRECT ANSWER - If the bank does not obtain the TIN from the deposit
account holder when the account is opened, the Bank Secrecy Act requires that the bank
____________.
Determine the number of mortgage loans your banks services together with any affiliates as of
the current date.
