NEWEST CERTIFIED REGULATORY
COMPLIANCE MANAGER (CRCM) EXAM |
ULTIMATE EXAM WITH CORRECT
ANSWERS AND RATIONALES FOR
CERTIFICATION SUCCESS
1. The primary purpose of a compliance management
system (CMS) is to:
A) Maximize profits through regulatory arbitrage
B) Ensure that the financial institution complies with
all applicable laws, regulations, and internal policies
C) Avoid all regulatory scrutiny
D) Minimize employee training costs
E) Eliminate all customer complaints
Correct answer: B
Rationale: A CMS is designed to achieve and maintain
compliance.
2. The three lines of defense in a compliance
management system are:
,A) Business line management, compliance
department, and internal audit
B) The board, management, and shareholders
C) The CEO, CFO, and COO
D) Internal audit, external audit, and regulators
E) Compliance, legal, and risk management
Correct answer: A
Rationale: The three lines provide layered assurance.
3. Under the Community Reinvestment Act (CRA), a
financial institution is evaluated on its record of:
A) Meeting the credit needs of its entire community,
including low- and moderate-income neighborhoods
B) Maximizing profits in all areas
C) Avoiding lending in low-income areas
D) Providing only deposit services
E) Investing only in government securities
Correct answer: A
Rationale: CRA encourages banks to serve all
segments of their communities.
,4. Which of the following is NOT one of the three CRA
tests for large retail banks?
A) Lending test
B) Investment test
C) Service test
D) Capital adequacy test
E) Community development test
Correct answer: D
Rationale: Capital adequacy is not a CRA test.
5. The Equal Credit Opportunity Act (ECOA) prohibits
discrimination based on:
A) Race, color, religion, national origin, sex, marital
status, age, or receipt of public assistance
B) Only race and gender
C) Only age and marital status
D) Only income level
E) Only credit score
Correct answer: A
, Rationale: ECOA lists these protected classes.
6. Under ECOA, a creditor must provide an adverse
action notice to an applicant within:
A) 30 days of receiving a completed application
B) 15 days of receiving a completed application
C) 45 days of receiving a completed application
D) 60 days of receiving a completed application
E) 90 days of receiving a completed application
Correct answer: A
Rationale: ECOA requires notification within 30 days.
7. The Fair Housing Act (FHA) prohibits
discrimination in housing-related transactions based
on:
A) Race, color, religion, sex, national origin, familial
status, and disability
B) Only race and color
C) Only familial status and disability
D) Only religion and national origin
E) Only sex and marital status
COMPLIANCE MANAGER (CRCM) EXAM |
ULTIMATE EXAM WITH CORRECT
ANSWERS AND RATIONALES FOR
CERTIFICATION SUCCESS
1. The primary purpose of a compliance management
system (CMS) is to:
A) Maximize profits through regulatory arbitrage
B) Ensure that the financial institution complies with
all applicable laws, regulations, and internal policies
C) Avoid all regulatory scrutiny
D) Minimize employee training costs
E) Eliminate all customer complaints
Correct answer: B
Rationale: A CMS is designed to achieve and maintain
compliance.
2. The three lines of defense in a compliance
management system are:
,A) Business line management, compliance
department, and internal audit
B) The board, management, and shareholders
C) The CEO, CFO, and COO
D) Internal audit, external audit, and regulators
E) Compliance, legal, and risk management
Correct answer: A
Rationale: The three lines provide layered assurance.
3. Under the Community Reinvestment Act (CRA), a
financial institution is evaluated on its record of:
A) Meeting the credit needs of its entire community,
including low- and moderate-income neighborhoods
B) Maximizing profits in all areas
C) Avoiding lending in low-income areas
D) Providing only deposit services
E) Investing only in government securities
Correct answer: A
Rationale: CRA encourages banks to serve all
segments of their communities.
,4. Which of the following is NOT one of the three CRA
tests for large retail banks?
A) Lending test
B) Investment test
C) Service test
D) Capital adequacy test
E) Community development test
Correct answer: D
Rationale: Capital adequacy is not a CRA test.
5. The Equal Credit Opportunity Act (ECOA) prohibits
discrimination based on:
A) Race, color, religion, national origin, sex, marital
status, age, or receipt of public assistance
B) Only race and gender
C) Only age and marital status
D) Only income level
E) Only credit score
Correct answer: A
, Rationale: ECOA lists these protected classes.
6. Under ECOA, a creditor must provide an adverse
action notice to an applicant within:
A) 30 days of receiving a completed application
B) 15 days of receiving a completed application
C) 45 days of receiving a completed application
D) 60 days of receiving a completed application
E) 90 days of receiving a completed application
Correct answer: A
Rationale: ECOA requires notification within 30 days.
7. The Fair Housing Act (FHA) prohibits
discrimination in housing-related transactions based
on:
A) Race, color, religion, sex, national origin, familial
status, and disability
B) Only race and color
C) Only familial status and disability
D) Only religion and national origin
E) Only sex and marital status
