IFPUG CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) - CRCM FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

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

A. A person to whom the bank refers consumers and who has a contract with the bank to receive commissions on sales of insurance B. All banks regardless of insurance sales. C. A person who sells insurance to nonconsumers for other than personal, family, or household purposes D. A lender who indicates to the consumer that he or she is selling insurance on behalf of the bank

Discussion 0

Correct Answer: C Vote an answer

Question 2

Fastfood, Inc., a nationwide restaurant chain, opened an account at First National Bank last year. Fastfood is making daily deposits in amounts of $15,000 to $20,000. First National needs to determine if this company is an exempt person. What should the bank do first?

A. The bank should ask the company if it qualifies as a listed business. B. The bank should look in the newspaper or on the Internet to determine if Fastfood, Inc.'s, stock appears on one of the listed exchanges. C. Because
the restaurant is an established
depositor, the
bank should
provide an unlimited exemption for cash deposits and withdrawals. D. The bank should perform a corporate records check to determine if the company is chartered in the United States.

Discussion 0

Correct Answer: B Vote an answer

Question 3

First National Bank has an employee benefit program whereby all bank employees who meet the bank's credit
underwriting standards may obtain consumer loans for
major purchases or expenses at a rate that is less than the bank's prime rate. Can the bank allow its executive officers to borrow under this program?

A. Yes. Provided the program is available to everyone at the bank as an employee benefit, executive officers may also participate. B. Yes. However, executive officers must secure their loans with collateral valued at 100 percent of the loan balance or more. C. No. Executive officers may not have preferential interest rates under any circumstances. D. No. However, the related interests of the executive officers may take advantage of it.

Discussion 0

Correct Answer: A Vote an answer

Question 4

On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

A. An unsecured loan made to purchase a computer used in the borrower's business B. A loan made to purchase a home computer, secured by the computer C. A loan made to purchase a family car, secured by the car D. A loan made to purchase a residence, secured by the residence

Discussion 0

Correct Answer: D Vote an answer

Question 5

When completing and filing a SAR, what is the bank NOT required to do?

A. Maintain a copy of the SAR and supporting documentation for 5 years B. Report the SAR information to the bank's board of directors C. Submit a copy of the supporting documentation with the SAR D. Submit the SAR within 30 days of the initial detection of facts

Discussion 0

Correct Answer: C Vote an answer

Question 6

ACME Bank would like its tellers to help sell insurance products to new and existing customers. The tellers would refer customers to personal bankers who have insurance licenses from the state. The bank would like to reward tellers by giving them a small percentage of the commission for each policy sold where the sale resulted from a referral. Which of the following statements presents ACME's biggest concern in complying with the Consumer Protection in Sales of Insurance regulation?

A. It is difficult for many people to get an insurance license. B. Tellers should not be rewarded only when the referral results in a sale. C. It is hard for tellers to handle so many types of products. D. It is hard to physically separate insured deposit products from insurance products.

Discussion 0

Correct Answer: B Vote an answer

Question 7

Which one of the following types of credit may be extended in Requirements case-12 CFR 221.3, 221.7:

A. Capital contribution leases B. Credit to clearing banking authorities C. Temporary advances in payment against delivery transactions D. Underwriter loans

Discussion 0

Correct Answer: C,D Vote an answer

Question 8

What are holders of unclaimed property required to do?

A. Publish in a local paper the owners' names of accounts that will escheat B. Charge customers "inactive/unclaimed" fees for accounts that are dormant C. Discontinue paying interest on dormant accounts D. Mail a notification to customers whose accounts may escheat to the state

Discussion 0

Correct Answer: D Vote an answer

Question 9

A bank may include all of the following in the narrative portion of its financial disclosure except for one. Which of these pieces of information CANNOT be disclosed?

A. The bank's future plans for product development B. Information related to a regulatory enforcement action that currently applies to the bank C. An excerpt from the latest regulatory examination prepared by the bank's regulatory agency D. Information relating to mergers and acquisitions

Discussion 0

Correct Answer: C Vote an answer

Question 10

Mr. Roberts has three loans at First National Bank: Loan A made to purchase a car, secured by the car; Loan B made to purchase stock, secured by a lake lot; and Loan C made to pay taxes, secured by a rental house he owns. Last year he paid $2,500 in interest on Loan A; $550 in interest on Loan B; and $1,000 in interest on Loan C.
How much interest will First National Bank report to the IRS?

A. $2,500 B. $1,550 C. $4,050 D. $1,000

Discussion 0

Correct Answer: D Vote an answer

Question 11

First National Bank made a loan to Lawrence & Co. for the purpose of purchasing landscape equipment, secured by a storage lot the company owneD. The borrower made payments for a year and then defaulteD. Three months passed without any communication or payments from the borrower, despite the bank's efforts to locate the company's owners. The company appears to have ceased operations. What is the bank's BEST course of action?

A. Do nothing, because the bank has no actual knowledge of abandonment and has not foreclosed on the property B. Make reasonable inquiries to determine whether the property is abandoned and if so, report it as abandoned C. Locate the borrower, foreclose on the property, and report the transaction as a foreclosure D. Report the property as abandoned

Discussion 0

Correct Answer: B Vote an answer