CRCM Sample Exam 100 Questions
And Answers| A RATED
1. The bank is beginning e-banking and wants to deliver a full range of consumer electronic
services. The compliance manager is a member of the project team. Which of the following
functions is MOST appropriate for the compliance manager during the INITIAL stages of this
project?
A. Drafting the content of the electronic disclosures
B. Setting reasonable and competitive fees for the services offered
C. Determining which products to include in the electronic delivery system
D. Identifying the consumer protection regulatory provisions on liability and error resolution
Correct Answer: D. Identifying the consumer protection regulatory provisions on liability and
error resolution
2. You have learned that the Consumer Financial Protection Bureau has issued a proposed
regulation to implement a recently enacted federal law. The proposal would have a significant
adverse impact on one of the financial institution's existing activities. You have prepared a
summary of the proposal for management. Which of the following actions is MOST appropriate
for you to take?
A. Wait to distribute information until the rule is final.
B. Distribute the summary and begin efforts to comply with the proposed requirements.
C. Distribute the summary and advise that the financial institution may send a comment letter.
D. Distribute the summary along with guidance on how to lobby Congress to amend the recent
law. Correct Answer: C. Distribute the summary and advise that the financial institution may
send a comment letter.
3. A customer presented $13,000 in cash for deposit to her account. She withheld $4,000 from
the transaction when the teller began to complete a CTR. In this situation, the bank should
____________.
A. file the appropriate SAR form with respect to the structured transaction
B. make an entry in its log of cash sales of monetary instruments
C. file a CTR for the $13,000 transaction
D. refuse the transaction Correct Answer: A. file the appropriate SAR form with respect to the
structured transaction
4. An internal fair lending review indicated no evidence of overt discriminatory practices.
However, 60% of the unsecured loans approved to male applicants were charged loan fees that
were lower than the bank's policy, and only 10% of the female applicants received reduced loan
fees. There was insufficient documentation in the credit files to justify these pricing differences.
The MOST appropriate action the compliance officer should take is to ____________.
A. note the event, but indicate that no overt discrimination was found
B. conduct a complete demographic and regression analysis to determine the full extent of this
fair lending issue
, C. develop specific policy provisions for fee exception approvals and documentation, and retrain
lending personnel
D. anticipate a referral to the Department of Justice on the next regulatory exam due to
inconsistent application of loan policy that has resulted in disparate impact Correct Answer: C.
develop specific policy provisions for fee exception approvals and documentation, and retrain
lending personnel
5. To ensure that your institutions policies and procedures are in compliance with Regulation B
and its requirements relating to spousal signatures, what is the most effective action you, as the
compliance officer, should take?
A. Research state signature requirements in all states in which customers could reside or own
property and prepare a legal brief for management on the findings
B. Ensure that the institution adopts a continuing guarantee for all commercial loans
C. Review customer complaints relating to spousal signatures in the lending department
D. Provide periodic training on spousal signature requirements of Regulation B to lending staff
Correct Answer: D. Provide periodic training on spousal signature requirements of Regulation B
to lending staff
6. A bank is considering changing its business hours of operation. Currently, branches arre not
open on Saturdays and Sundays. The bank is considering opening all branches on Saturdays from
9:00 am to 11:00 am for routine teller transactions through the drive-up windows. The loan
operations manager asks the compliance manager how this change will impact the process for
mailing consumer loan disclosures to customers for mortgage loans. The compliance manager
responds by explaining that:
A. The change will require the bank to consider Saturday as a business day for purposes of
delivering Loan Estimates to consumers after receipt of an application.
B. The change will not affect the timing of delivery of Loan Estimates to consumers after receipt
of an application.
C. The change will affect the timing of delivery of Revised Loan Estimates to consumers after
receipt of an application.
D. The change will require the bank to consider Saturday as a business day for purposes of the 7
day waiting period prior to loan consummation. Correct Answer: B. The change will not affect
the timing of delivery of Loan Estimates to consumers after receipt of an application.
7. An auditor asked for your guidance regarding an audit in process. Review of 20 adverse action
notices revealed that 2 were sent late, and 2 did not show the name and address of the credit
reporting agency when required by the Fair Credit Reporting Act. Each of the errors was made
by a different employee. Given these findings, you should advise the auditor to ____________.
A. continue with the audit, as this is not a problem
B. cite the errors as technical exceptions
C. review more items to determine a root cause of the problem
D. read Regulation B and the Fair Credit Reporting Act for guidance Correct Answer: C.
review more items to determine a root cause of the problem
8. A recent regulatory change increased the amount of FDIC insurance coverage for individual
depositors. The compliance manager should FIRST _____________.
, A. develop a new policy in this area
B. maintain the current program without change
C. update the content of employee training material
D. revise the internal monitoring schedule in this area Correct Answer: C. update the content of
employee training material
9. The bank has decided to begin offering a full range of non-deposit investment products to
retail customers. Your FIRST step should be to ____________.
A. review the state insurance licensing requirements
B. develop a program to obtain Series 6 & 7 licenses for the sales staff
C. develop new account forms that include processes to determine suitability
D. review the Interagency Statement on the Retail Sale of Nondeposit Investment Products
Correct Answer: D. review the Interagency Statement on the Retail Sale of Nondeposit
Investment Products
10. Anywhere Bank is receiving frequent complaints from borrowers about having to delay the
loan closing because a copy of the appraisal must be provided to them at least three business
days prior to loan consummation and appraisals are taking a very long time in this area. So, the
bank has decided to allow borrowers to waive their right to receive a copy of the appraisal as
follows:
A. Borrowers may provide a waiver in writing as long as it is received by the bank at least three
business days before loan consummation and as long as the appraisal is provided to them no later
than at loan consummation
B. Borrowers may provide a waiver in writing as long as it is received by the bank prior to loan
consummation and as long as the appraisal is provided to them no later than 30 days after loan
consummation
C. Borrowers may provide a waiver in writing as long as it is not on a bank-prepared form and
describes the bona fide personal financial emergency that is the basis for the requested waiver
and as long as the appraisal is provided to them no later than 30 days after loan consummation
D. Borrowers may provide a waiver in writing as long as it is received by the bank with the
Intent to Proceed with the loan application and as long as the appraisal is provided to them no
later than at loan consummation Correct Answer: A. Borrowers may provide a waiver in writing
as long as it is received by the bank at least three business days before loan consummation and as
long as the appraisal is provided to them no later than at loan consummation
11. To avoid a violation of the Regulation O prohibition against paying an overdraft of a director,
a bank should ____________.
A. establish a written, preauthorized interest-bearing credit line with a specified repayment
schedule, with each director to cover possible overdrafts
B. charge sufficiently large overdraft fees to directors in order to deter overdrafts
C. report directors' overdrafts in writing, within ten days, to the bank's supervisory agency
D. limit the aggregate outstanding overdrafts of any one director to 2.5% of capital and surplus,
or $100,000, whichever is less Correct Answer: A. establish a written, preauthorized interest-
bearing credit line with a specified repayment schedule, with each director to cover possible
overdrafts
And Answers| A RATED
1. The bank is beginning e-banking and wants to deliver a full range of consumer electronic
services. The compliance manager is a member of the project team. Which of the following
functions is MOST appropriate for the compliance manager during the INITIAL stages of this
project?
A. Drafting the content of the electronic disclosures
B. Setting reasonable and competitive fees for the services offered
C. Determining which products to include in the electronic delivery system
D. Identifying the consumer protection regulatory provisions on liability and error resolution
Correct Answer: D. Identifying the consumer protection regulatory provisions on liability and
error resolution
2. You have learned that the Consumer Financial Protection Bureau has issued a proposed
regulation to implement a recently enacted federal law. The proposal would have a significant
adverse impact on one of the financial institution's existing activities. You have prepared a
summary of the proposal for management. Which of the following actions is MOST appropriate
for you to take?
A. Wait to distribute information until the rule is final.
B. Distribute the summary and begin efforts to comply with the proposed requirements.
C. Distribute the summary and advise that the financial institution may send a comment letter.
D. Distribute the summary along with guidance on how to lobby Congress to amend the recent
law. Correct Answer: C. Distribute the summary and advise that the financial institution may
send a comment letter.
3. A customer presented $13,000 in cash for deposit to her account. She withheld $4,000 from
the transaction when the teller began to complete a CTR. In this situation, the bank should
____________.
A. file the appropriate SAR form with respect to the structured transaction
B. make an entry in its log of cash sales of monetary instruments
C. file a CTR for the $13,000 transaction
D. refuse the transaction Correct Answer: A. file the appropriate SAR form with respect to the
structured transaction
4. An internal fair lending review indicated no evidence of overt discriminatory practices.
However, 60% of the unsecured loans approved to male applicants were charged loan fees that
were lower than the bank's policy, and only 10% of the female applicants received reduced loan
fees. There was insufficient documentation in the credit files to justify these pricing differences.
The MOST appropriate action the compliance officer should take is to ____________.
A. note the event, but indicate that no overt discrimination was found
B. conduct a complete demographic and regression analysis to determine the full extent of this
fair lending issue
, C. develop specific policy provisions for fee exception approvals and documentation, and retrain
lending personnel
D. anticipate a referral to the Department of Justice on the next regulatory exam due to
inconsistent application of loan policy that has resulted in disparate impact Correct Answer: C.
develop specific policy provisions for fee exception approvals and documentation, and retrain
lending personnel
5. To ensure that your institutions policies and procedures are in compliance with Regulation B
and its requirements relating to spousal signatures, what is the most effective action you, as the
compliance officer, should take?
A. Research state signature requirements in all states in which customers could reside or own
property and prepare a legal brief for management on the findings
B. Ensure that the institution adopts a continuing guarantee for all commercial loans
C. Review customer complaints relating to spousal signatures in the lending department
D. Provide periodic training on spousal signature requirements of Regulation B to lending staff
Correct Answer: D. Provide periodic training on spousal signature requirements of Regulation B
to lending staff
6. A bank is considering changing its business hours of operation. Currently, branches arre not
open on Saturdays and Sundays. The bank is considering opening all branches on Saturdays from
9:00 am to 11:00 am for routine teller transactions through the drive-up windows. The loan
operations manager asks the compliance manager how this change will impact the process for
mailing consumer loan disclosures to customers for mortgage loans. The compliance manager
responds by explaining that:
A. The change will require the bank to consider Saturday as a business day for purposes of
delivering Loan Estimates to consumers after receipt of an application.
B. The change will not affect the timing of delivery of Loan Estimates to consumers after receipt
of an application.
C. The change will affect the timing of delivery of Revised Loan Estimates to consumers after
receipt of an application.
D. The change will require the bank to consider Saturday as a business day for purposes of the 7
day waiting period prior to loan consummation. Correct Answer: B. The change will not affect
the timing of delivery of Loan Estimates to consumers after receipt of an application.
7. An auditor asked for your guidance regarding an audit in process. Review of 20 adverse action
notices revealed that 2 were sent late, and 2 did not show the name and address of the credit
reporting agency when required by the Fair Credit Reporting Act. Each of the errors was made
by a different employee. Given these findings, you should advise the auditor to ____________.
A. continue with the audit, as this is not a problem
B. cite the errors as technical exceptions
C. review more items to determine a root cause of the problem
D. read Regulation B and the Fair Credit Reporting Act for guidance Correct Answer: C.
review more items to determine a root cause of the problem
8. A recent regulatory change increased the amount of FDIC insurance coverage for individual
depositors. The compliance manager should FIRST _____________.
, A. develop a new policy in this area
B. maintain the current program without change
C. update the content of employee training material
D. revise the internal monitoring schedule in this area Correct Answer: C. update the content of
employee training material
9. The bank has decided to begin offering a full range of non-deposit investment products to
retail customers. Your FIRST step should be to ____________.
A. review the state insurance licensing requirements
B. develop a program to obtain Series 6 & 7 licenses for the sales staff
C. develop new account forms that include processes to determine suitability
D. review the Interagency Statement on the Retail Sale of Nondeposit Investment Products
Correct Answer: D. review the Interagency Statement on the Retail Sale of Nondeposit
Investment Products
10. Anywhere Bank is receiving frequent complaints from borrowers about having to delay the
loan closing because a copy of the appraisal must be provided to them at least three business
days prior to loan consummation and appraisals are taking a very long time in this area. So, the
bank has decided to allow borrowers to waive their right to receive a copy of the appraisal as
follows:
A. Borrowers may provide a waiver in writing as long as it is received by the bank at least three
business days before loan consummation and as long as the appraisal is provided to them no later
than at loan consummation
B. Borrowers may provide a waiver in writing as long as it is received by the bank prior to loan
consummation and as long as the appraisal is provided to them no later than 30 days after loan
consummation
C. Borrowers may provide a waiver in writing as long as it is not on a bank-prepared form and
describes the bona fide personal financial emergency that is the basis for the requested waiver
and as long as the appraisal is provided to them no later than 30 days after loan consummation
D. Borrowers may provide a waiver in writing as long as it is received by the bank with the
Intent to Proceed with the loan application and as long as the appraisal is provided to them no
later than at loan consummation Correct Answer: A. Borrowers may provide a waiver in writing
as long as it is received by the bank at least three business days before loan consummation and as
long as the appraisal is provided to them no later than at loan consummation
11. To avoid a violation of the Regulation O prohibition against paying an overdraft of a director,
a bank should ____________.
A. establish a written, preauthorized interest-bearing credit line with a specified repayment
schedule, with each director to cover possible overdrafts
B. charge sufficiently large overdraft fees to directors in order to deter overdrafts
C. report directors' overdrafts in writing, within ten days, to the bank's supervisory agency
D. limit the aggregate outstanding overdrafts of any one director to 2.5% of capital and surplus,
or $100,000, whichever is less Correct Answer: A. establish a written, preauthorized interest-
bearing credit line with a specified repayment schedule, with each director to cover possible
overdrafts
