Bank Exam, 2026 – Study Material and Practice Questions
Historically, a commercial bank was defined as a firm that:
A. accepted NOW accounts and made consumer loans.
B. accepted demand deposits and made business loans.
c. accepted government deposits and made public loans.
D. accepted demand deposits and made consumer loans.
E. is regulated by the Federal Reserve. - ANS✔✔ B. accepted demand deposits and made
business loans.
1. Which of the following is not a purpose of bank regulation?
A. Guarantee minimal profitability of the banking system.
B. Provide monetary stability.
C. Ensure the safety and soundness of banks.
D. Provide a competitive financial system.
E.Protect consumers from abuses by banks. - ANS✔✔ A
1. A primary purpose of maintaining the safety and soundness of banks is to:
A.encourage loan growth.
B.protect depositors.
C. ensure liquidity for the stock market.
D. prevent discrimination.
E.minimize bank losses. - ANS✔✔ B
Which of the following is not represented in the CAMELS ratings.
A. Cash adequacy
,B. Asset quality
C. Management quality
D. Liquidity
E. Sensitivity to market risk. - ANS✔✔ A
1. A formal regulatory document that prescribes corrective action for a problem institution is
called a:
A. cease and desist order.
B. capital request.
C. memorandum of understanding.
D. quality assurance directive.
E. national bank order. - ANS✔✔ c
A legal document that orders a firm to sop an unfair practice under full penalty of law is a:
A. cease and desist order.
B. capital request.
C. memorandum of understanding.
D. quality assurance directive.
E. national bank order. - ANS✔✔ A
1. A new charter to start a state bank must be obtained from the:
A.Federal Reserve.
B. Federal Deposit Insurance Corporation.
C. Office of the Comptroller of the Currency.
D. Office of Thrift Supervision.
E. State banking department. - ANS✔✔ E
,A new charter to start a federal savings association is obtained from the:
A. Office of the Comptroller of the Currency.
B.National Credit Union Administration.
C. Office of Thrift Supervision.
D. State banking department.
E. Federal Reserve - ANS✔✔ C
National and state charters are available for all of the following except:
A. credit unions.
B. commercial banks.
C. savings associations.
D.Federal Reserve banks.
E. National and state charters are available for all of the above. - ANS✔✔ D
The primary federal regulator of state banks that are not members of the Fed is the:
A.FDIC.
B. Office of the Comptroller of the Currency.
C. Office of Thrift Supervision.
D. State's banking department.
E. National Credit Union Administration. - ANS✔✔ A
The primary federal regulator of state banks that are members of the Fed is the:
A. Resolution Trust Corporation
B. Federal Reserve
C. Office of the Comptroller of the Currency
, D. State Banking Authorities.
E. Federal Deposit Insurance Corporation. - ANS✔✔ B
Commercial banks mostly specialize in:
A. mortgages.
B. mutual loans.
C. short-term business credit.
D. savings accounts.
E. share draft accounts. - ANS✔✔ C
Savings and loans have historically specialized in:
A. commercial loans.
B. auto loans.
C. mutual loan.
D. real estate loans.
E. demand deposit accounts.
Answer: d - ANS✔✔ D
1. Savings institutions must maintain what percent of their assets in housing-related assets to be
considered a "Qualified Thrift Lender"?
A. 100%
B. 15%
C. 70%
D. 85%
E. 65% - ANS✔✔ E
Historically, a commercial bank was defined as a firm that:
A. accepted NOW accounts and made consumer loans.
B. accepted demand deposits and made business loans.
c. accepted government deposits and made public loans.
D. accepted demand deposits and made consumer loans.
E. is regulated by the Federal Reserve. - ANS✔✔ B. accepted demand deposits and made
business loans.
1. Which of the following is not a purpose of bank regulation?
A. Guarantee minimal profitability of the banking system.
B. Provide monetary stability.
C. Ensure the safety and soundness of banks.
D. Provide a competitive financial system.
E.Protect consumers from abuses by banks. - ANS✔✔ A
1. A primary purpose of maintaining the safety and soundness of banks is to:
A.encourage loan growth.
B.protect depositors.
C. ensure liquidity for the stock market.
D. prevent discrimination.
E.minimize bank losses. - ANS✔✔ B
Which of the following is not represented in the CAMELS ratings.
A. Cash adequacy
,B. Asset quality
C. Management quality
D. Liquidity
E. Sensitivity to market risk. - ANS✔✔ A
1. A formal regulatory document that prescribes corrective action for a problem institution is
called a:
A. cease and desist order.
B. capital request.
C. memorandum of understanding.
D. quality assurance directive.
E. national bank order. - ANS✔✔ c
A legal document that orders a firm to sop an unfair practice under full penalty of law is a:
A. cease and desist order.
B. capital request.
C. memorandum of understanding.
D. quality assurance directive.
E. national bank order. - ANS✔✔ A
1. A new charter to start a state bank must be obtained from the:
A.Federal Reserve.
B. Federal Deposit Insurance Corporation.
C. Office of the Comptroller of the Currency.
D. Office of Thrift Supervision.
E. State banking department. - ANS✔✔ E
,A new charter to start a federal savings association is obtained from the:
A. Office of the Comptroller of the Currency.
B.National Credit Union Administration.
C. Office of Thrift Supervision.
D. State banking department.
E. Federal Reserve - ANS✔✔ C
National and state charters are available for all of the following except:
A. credit unions.
B. commercial banks.
C. savings associations.
D.Federal Reserve banks.
E. National and state charters are available for all of the above. - ANS✔✔ D
The primary federal regulator of state banks that are not members of the Fed is the:
A.FDIC.
B. Office of the Comptroller of the Currency.
C. Office of Thrift Supervision.
D. State's banking department.
E. National Credit Union Administration. - ANS✔✔ A
The primary federal regulator of state banks that are members of the Fed is the:
A. Resolution Trust Corporation
B. Federal Reserve
C. Office of the Comptroller of the Currency
, D. State Banking Authorities.
E. Federal Deposit Insurance Corporation. - ANS✔✔ B
Commercial banks mostly specialize in:
A. mortgages.
B. mutual loans.
C. short-term business credit.
D. savings accounts.
E. share draft accounts. - ANS✔✔ C
Savings and loans have historically specialized in:
A. commercial loans.
B. auto loans.
C. mutual loan.
D. real estate loans.
E. demand deposit accounts.
Answer: d - ANS✔✔ D
1. Savings institutions must maintain what percent of their assets in housing-related assets to be
considered a "Qualified Thrift Lender"?
A. 100%
B. 15%
C. 70%
D. 85%
E. 65% - ANS✔✔ E
