FDIC Compliance TE UPDATED ACTUAL Questions
and CORRECT Answers
What does 'Potential Harm' refer to It involves activities or failures that create the
in financial activities? possibility of consumer harm, such as inadequate
flood insurance.
What is the Residual Risk Formula? Inherent Risk - Mitigating Factors = Residual Risk.
What level of violation is a TIL Level 3 violation because the violation is greater
violation that resulted in $15,000 in than $10,000.
restitution?
, True or False: The exit agenda should True.
list discussion items in order of their
significance in relation to the overall
conclusions.
Which of the following is not a (e) Level 1 violations are not included; only Level 2
component of the ROE? (a) and 3 violations are included.
Transmittal Letter (b) Cover Page (c)
Examiner Comments & Conclusions
(d) MRBA (e) Level 1, 2, & 3 violations
(f) Supervisory Comments
Which component of the ROE is not (d) This page is used to provide information to RO,
included in the ROE transmitted to WO, and succeeding examiners.
the institution? (a) Compliance w/
Enforcement Actions (b) MRBA (c)
Other Matters (d) Supervisory
Comments
Where should items that require In Section 4 under the 'Other Areas for Review'
transaction testing but are not section.
predicated upon residual consumer
harm risk be addressed in the
ARCH?
True or False: Investigations or False; regional compliance management can
visitations cannot lead to a change in change a rating between exams if the current
the bank's compliance rating. rating is deemed no longer suitable.
True or False: Total assets help to True; the formula is Total Assets/$1 billion x Penalty,
determine the dollar amount of CMP with the penalty determined by points on the CMP
penalties. matrix.
and CORRECT Answers
What does 'Potential Harm' refer to It involves activities or failures that create the
in financial activities? possibility of consumer harm, such as inadequate
flood insurance.
What is the Residual Risk Formula? Inherent Risk - Mitigating Factors = Residual Risk.
What level of violation is a TIL Level 3 violation because the violation is greater
violation that resulted in $15,000 in than $10,000.
restitution?
, True or False: The exit agenda should True.
list discussion items in order of their
significance in relation to the overall
conclusions.
Which of the following is not a (e) Level 1 violations are not included; only Level 2
component of the ROE? (a) and 3 violations are included.
Transmittal Letter (b) Cover Page (c)
Examiner Comments & Conclusions
(d) MRBA (e) Level 1, 2, & 3 violations
(f) Supervisory Comments
Which component of the ROE is not (d) This page is used to provide information to RO,
included in the ROE transmitted to WO, and succeeding examiners.
the institution? (a) Compliance w/
Enforcement Actions (b) MRBA (c)
Other Matters (d) Supervisory
Comments
Where should items that require In Section 4 under the 'Other Areas for Review'
transaction testing but are not section.
predicated upon residual consumer
harm risk be addressed in the
ARCH?
True or False: Investigations or False; regional compliance management can
visitations cannot lead to a change in change a rating between exams if the current
the bank's compliance rating. rating is deemed no longer suitable.
True or False: Total assets help to True; the formula is Total Assets/$1 billion x Penalty,
determine the dollar amount of CMP with the penalty determined by points on the CMP
penalties. matrix.
