CRCM Online Practice Questions and Answers

When developing a training plan for commercial lenders, which of the following regulations is least important to include?

A. Equal Credit Opportunity, FRS Regulation B

B. Home Mortgage Disclosure, FRS Regulation C

C. Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks, FRS Regulation O

D. Truth in Lending Act, FRS Regulation Z

Which of the following is true regarding extensions of credit to executive officers, directors, and principal shareholders?

A. Must be approved in advance by the board of directors if the aggregate credit is more than the greater of either $25,000 or 5 percent of the bank's capital and surplus, not exceeding $500,000

B. Must be approved in advance by the board of directors if the credit is greater than $50,000 or 5 percent of the bank's capital and surplus

C. May not exceed $100,000 in the aggregate, regardless of approvals

D. May not exceed $250,000 in the aggregate, regardless of approvals

Which account is NOT subject to backup withholding?

A. A money market savings account owned by Brenda Wilson

B. A time deposit account owned by Bob and Nancy Dawson

C. An IRA owned by Max Jones

D. A savings account owned by Karen Hitchings

First National Bank made a loan to a nonbank affiliate of its holding company that is secured by stocks, bonds, and debentures. At the outset of the loan,First National had collateral with a market value equal to 150 percent of the loan amount. Over time, some of the collateral has been retired and amortized. Some has dropped in value. What is the responsibility of the bank regarding the collateral?

A. The bank has no responsibility once the loan is made provided the percentages were correct at the loan's inception.

B. The bank must check values every month to ensure that the percentages are correct at all times.

C. The bank must check values when the collateral is retired or amortized to make sure the collateral is replaced with securities that will bring the loan into compliance with the percentages required in the law.

D. The bank must annually check the value of the collateral to ensure that the percentage of value is maintained.

While Presenting items for payment:

A. A Reserve Bank or a subsequent collecting bank may present an item for payment but doesn't send the item for presentment and payment

B. A Reserve Bank may send an item to a collecting bank with authority to present it for payment or send it for presentment and payment

C. A Reserve Bank may present an item for payment at the place requested by the paying bank, at a place requested by the nonbank payor, through a clearinghouse, or under a special collection agreement

D. Within a Reserve Bank's district, the Reserve Bank may present the item indirectly to the paying bank or a nonbank payor, as applicable

The institution need not provisionally credit the consumer's account if it requires but does not receive written confirmation of oral notice of error or if the error involves an account subject to the margin requirements of .

A. Regulation T

B. Regulation X

C. Regulation Z

D. Regulation E

The OCC has determined that a national bank may not assume that, simply because a consumer's PIN or ATM card was used in a transaction, that transaction is authorized. Banks are required to take reasonable steps to determine whether the transaction was authorized. Such steps might include the bank's review of:

A. Documentation or written, signed statements provided by the consumer

B. Historical information on the customer's pattern of use (such as time, location, types of transactions, and so on)

C. Problems reported by regular customers regarding the access device or ATM

D. Legal reports

What should a bank do when it receives a request from a customer to transfer funds to an individual in Iraq?

A. Conduct the transfer as requested

B. Conduct the transfer if the individual and the financial institution are not on the SDN list

C. Block the transfer

D. Conduct the transfer and then notify OFAC immediately

Which of the following employment practices is NOT legal under ADA?

A. Establishing a policy that prohibits hiring alcoholic applicants

B. Establishing a policy that prohibits smoking at any time at work

C. Holding employees who are certified alcoholics to the same performance standards as other employees

D. Refusing to hire an employee who currently uses illegal drugs

Which of the following actions is acceptable under the financial reporting regulations?

A. Attaching a narrative explanation by management of the reasons for a cease and desist order as a part of the annual disclosure

B. Attaching a copy of the bank's last safety and soundness examination to the annual disclosure

C. Including a statement that indicates that the bank's regulatory agency has reviewed the financial information

D. Using an unaudited financial statement for the past two years as an annual disclosure statement