CRCM Online Practice Questions and Answers

requires that a statement of purpose be obtained from borrowers whose loans are to be greater than $100,000 and that will be secured by margin stock. Loans made for the purpose of purchasing margin stock are subject to additional limitations.

A. Regulation U

B. Regulation V

C. Regulation Z

D. Regulation X

It is an extension of credit will be deemed to be made to an insider if the proceeds are transferred to the insider or used for the insider's benefit. This rule does not apply if the credit is made on substantially the same terms and conditions as those made to a non- insider and if the proceeds are used in a bona fide transaction involving the acquisition of property, goods, or services from the insider.

What is it?

A. Tangible economic benefit rule012 CFR 215.3(f)

B. Extension of credit-12 CFR 215.3

C. Lending restrictions

D. Intangible economic-benefit rule

Is the renewal of a loan considered to be a new extension of credit for purposes of valuing the collateral under Regulation U?

A. Yes

B. Yes, if any additional amounts are added to the loan balance

C. Yes, if any amounts other than interest, service charges, or taxes are added to the loan balance

D. No, a renewal is never considered to be a new credit

Which of the following loans is clearly NOT subject to the IRS mortgage interest reporting requirement?

A. A loan made to purchase securities, secured by rural acreage

B. A loan made to finance a college education, secured by a piece of commercial real estate

C. A loan made to purchase a lot on a lake, secured by a certificate of deposit

D. A loan made to purchase a residence, secured by the dwelling

Information reports must include which of the following details?

A. Name, address, and TIN of the borrower

B. Purpose of the loan

C. Address of the property securing the mortgage

D. Fair market value of the property at the time of the loan

A member bank wants to sell assets to an affiliated bank that is 100 percent owned by the same bank holding company. Is this transaction allowed?

A. No. It is prohibited.

B. Yes, but it is subject to an aggregate limit of 10 percent of the member bank's capital and unimpaired surplus.

C. Yes. It is permitted, if the assets are not low quality.

D. Yes, but it must be classified on the receiving bank's books as low quality assets.

Which of the following is (are) NOT covered by the regulation?

A. All banks regardless of insurance sales.

B. A lender who indicates to the consumer that he or she is selling insurance on behalf of the bank

C. A person to whom the bank refers consumers and who has a contract with the bank to receive commissions on sales of insurance

D. A person who sells insurance to nonconsumers for other than personal, family, or household purposes

is an agent or a subagent of the owner of an item; agency terminates when it receives payment for an item in finally collected funds and makes the proceeds available to the sender, and the time for commencing all actions against it has expired.

A. Clearing agent

B. The Reserve Bank

C. Foreign bank

D. Foreign banker

A Reserve Bank may present a noncash item for payment if instructed to do so by the sender and if the:

A. Item provides that it must be presented for acceptance

B. Item is payable elsewhere than at the residence or business of the payor

C. Item sent directly to the paying bank or the nonbank payor

D. Date of payment of the item depends on presentment for acceptance

As an alternative to providing a periodic statement, a financial institution holding payroll card accounts may make available:

A. The account balance, accessed through a readily available telephone line

B. An electronic history of the account that covers a period of at least 60 days preceding the time the consumer electronically accesses the account

C. A written history of account transactions, available on request that covers a period of at least 15 days preceding the date of the consumer request

D. A written history of account transactions, available on request that covers a period of at least 30 days preceding the date of the consumer request