Community Reinvestment Act | Test REAL QUESTIONS AND VERIFIED ANSWERS |100%
CORRECT | ALREADY GRADED a+| pass!!!
s CRA performance in the community and map of the assessment area -answer-D
There was a time when area that were allegedly considered poor credit risk sections of
the community were outlined on a map? What is the term used to describe this
practice? -answer-Redlining
What statement is true when institutions choose to develop their own CRA strategic
plan and be evaluated for CRA performance based on how well they meet the goals of
the plan?
a) 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
b) If an institution chooses the strategic plan option, they are not evaluated under the
small or large bank tests
c) The strategic plan option must address the deposit and service criteria that would
have been part of the usual evaluation
d) The strategic plan must cover the entire institution's performance -answer-B
Significant revisions were made to the focus of the CRA in 1995. Which statement best
describes that change?
a) Greater emphasis was placed on the CRA process and less emphasis on the CRA
performance of the institution
b) A split occurred between the agencies
c) The definition of community development was changed
d) Greater emphasis on CRA performance of the financial institution and less emphasis
on its CRA process -answer-D
Which statement best describes the development of a strategic plan?
a) Plan developed by a committee made up of federal regulators and employees of the
financial institutions
b) Plan developed by the board of the financial institution and approved by regulators
c) Plan developed by the financial institution with input from the community and
approval by the primary federal regulator
, d) Plan developed by the community with approval by the financial institution and the
federal regulators -answer-C
What are the potential consequences of failing to follow CRA requirements? -answer-
Regulators can deny banks with a less than satisfactory rating permission to merge,
purchase other banks, and open new branches. Additionally banks are required to
document efforts to improve performance on a quarterly basis in the public file
What happens if a bank does not receive at least a satisfactory rating using the strategic
plan assessment? -answer-Regulators will examine the bank using the appropriate
tests based on asset size
What are the required elements of a CRA strategic plan? -answer-Must address the
lending, investment, and service test criteria as defined in the large bank criteria
Everywhere Bank has received its Community Reinvestment Act (CRA) rating. The
rating reflects how Everywhere Bank is meeting its responsibilities to whom?
A. The Home Mortgage Disclosure Act (HMDA)
B. The community it serves
C. The Federal Reserve
D. The Federal Financial Institutions Examination Council (FFIEC) -answer-B
Certain information must be made available to the public upon request. The information
is found in the Community Reinvestment Act (CRA) Public File. What information is
found in this file?
A. An assessment area map and the number of employees required to monitor CRA
activity
B. Comment letters from individuals or businesses on the bank's CRA performance in
the community and an assessment area map
C. The number of employees required to monitor CRA activity and the lending services
available
D. Only the lending services available and comment letters from individuals or
businesses in the community on the bank's CRA performance -answer-B
Significant revisions were made to the Community Reinvestment Act's (CRA's) focus in
1995. Which statement best describes that change?
A. Greater emphasis was placed on the CRA process and less emphasis on bank CRA
performance
B. A split occurred between the agencies
C. The definition of ''community development'' changed
D. Greater emphasis on bank CRA performance and less emphasis on its CRA process
-answer-D What is the primary purpose of the CRA? -answer-To require appropriate
federal regulatory agencies to encourage regulated banks to help meet the credit needs
CORRECT | ALREADY GRADED a+| pass!!!
s CRA performance in the community and map of the assessment area -answer-D
There was a time when area that were allegedly considered poor credit risk sections of
the community were outlined on a map? What is the term used to describe this
practice? -answer-Redlining
What statement is true when institutions choose to develop their own CRA strategic
plan and be evaluated for CRA performance based on how well they meet the goals of
the plan?
a) 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
b) If an institution chooses the strategic plan option, they are not evaluated under the
small or large bank tests
c) The strategic plan option must address the deposit and service criteria that would
have been part of the usual evaluation
d) The strategic plan must cover the entire institution's performance -answer-B
Significant revisions were made to the focus of the CRA in 1995. Which statement best
describes that change?
a) Greater emphasis was placed on the CRA process and less emphasis on the CRA
performance of the institution
b) A split occurred between the agencies
c) The definition of community development was changed
d) Greater emphasis on CRA performance of the financial institution and less emphasis
on its CRA process -answer-D
Which statement best describes the development of a strategic plan?
a) Plan developed by a committee made up of federal regulators and employees of the
financial institutions
b) Plan developed by the board of the financial institution and approved by regulators
c) Plan developed by the financial institution with input from the community and
approval by the primary federal regulator
, d) Plan developed by the community with approval by the financial institution and the
federal regulators -answer-C
What are the potential consequences of failing to follow CRA requirements? -answer-
Regulators can deny banks with a less than satisfactory rating permission to merge,
purchase other banks, and open new branches. Additionally banks are required to
document efforts to improve performance on a quarterly basis in the public file
What happens if a bank does not receive at least a satisfactory rating using the strategic
plan assessment? -answer-Regulators will examine the bank using the appropriate
tests based on asset size
What are the required elements of a CRA strategic plan? -answer-Must address the
lending, investment, and service test criteria as defined in the large bank criteria
Everywhere Bank has received its Community Reinvestment Act (CRA) rating. The
rating reflects how Everywhere Bank is meeting its responsibilities to whom?
A. The Home Mortgage Disclosure Act (HMDA)
B. The community it serves
C. The Federal Reserve
D. The Federal Financial Institutions Examination Council (FFIEC) -answer-B
Certain information must be made available to the public upon request. The information
is found in the Community Reinvestment Act (CRA) Public File. What information is
found in this file?
A. An assessment area map and the number of employees required to monitor CRA
activity
B. Comment letters from individuals or businesses on the bank's CRA performance in
the community and an assessment area map
C. The number of employees required to monitor CRA activity and the lending services
available
D. Only the lending services available and comment letters from individuals or
businesses in the community on the bank's CRA performance -answer-B
Significant revisions were made to the Community Reinvestment Act's (CRA's) focus in
1995. Which statement best describes that change?
A. Greater emphasis was placed on the CRA process and less emphasis on bank CRA
performance
B. A split occurred between the agencies
C. The definition of ''community development'' changed
D. Greater emphasis on bank CRA performance and less emphasis on its CRA process
-answer-D What is the primary purpose of the CRA? -answer-To require appropriate
federal regulatory agencies to encourage regulated banks to help meet the credit needs
