Texas Banking Commission Officer
Licensing Exam Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2025|2026 Q&A | Instant
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1. Which Texas statute governs the regulation of state-chartered banks?
A. Texas Trust Code
B. Texas Banking Act
C. Texas Securities Act
D. Texas Insurance Code
B. Texas Banking Act
The Texas Banking Act provides the statutory framework for the regulation
and supervision of state-chartered banks in Texas.
2. Who appoints the Texas Banking Commissioner?
A. Texas Governor
B. State Legislature
C. Finance Commission of Texas
D. Texas Supreme Court
C. Finance Commission of Texas
,The Finance Commission of Texas appoints the Banking Commissioner,
who serves as the chief executive of the Texas Department of Banking.
3. Which of the following is NOT a primary responsibility of the Texas
Department of Banking?
A. Supervising state-chartered banks
B. Regulating insurance companies
C. Licensing money services businesses
D. Supervising trust companies
B. Regulating insurance companies
The regulation of insurance companies is handled by the Texas Department
of Insurance, not the Texas Department of Banking.
4. The Bank Secrecy Act (BSA) primarily addresses:
A. Consumer lending disclosures
B. Deposit insurance
C. Anti-money laundering compliance
D. Credit card interest rates
C. Anti-money laundering compliance
The BSA focuses on preventing money laundering and requires banks to
report suspicious activities.
5. The threshold for filing a Currency Transaction Report (CTR) is:
A. $3,000
B. $5,000
C. $10,000
D. $20,000
C. $10,000
Banks must file a CTR for any transaction involving more than $10,000 in
currency in a single day.
, 6. What is the maximum deposit insurance coverage provided by the
FDIC per depositor, per bank?
A. $100,000
B. $150,000
C. $250,000
D. $500,000
C. $250,000
The FDIC insures up to $250,000 per depositor, per insured bank, for each
account ownership category.
7. Which federal agency is primarily responsible for enforcing consumer
protection laws in financial services?
A. FDIC
B. OCC
C. CFPB
D. SEC
C. CFPB
The Consumer Financial Protection Bureau (CFPB) enforces consumer
financial laws to ensure fairness in financial markets.
8. What is a key responsibility of a bank officer under the Texas Banking
Act?
A. Drafting state legislation
B. Supervising the Texas Department of Insurance
C. Ensuring the bank operates in a safe and sound manner
D. Approving mergers between national banks
C. Ensuring the bank operates in a safe and sound manner
Officers are responsible for maintaining the safety and soundness of the
bank under Texas regulations.
9. The Community Reinvestment Act (CRA) is designed to:
, A. Reduce interest rates
B. Prevent insider trading
C. Encourage lending in low- and moderate-income neighborhoods
D. Eliminate ATM fees
C. Encourage lending in low- and moderate-income neighborhoods
CRA ensures that banks meet the credit needs of all segments of their
communities.
10. A Texas bank must notify the Department of Banking of a branch
closure at least:
A. 10 days in advance
B. 30 days in advance
C. 60 days in advance
D. 90 days in advance
D. 90 days in advance
Advance notice ensures transparency and regulatory oversight of branch
closures.
11. Which law prohibits discrimination in credit transactions?
A. Truth in Lending Act
B. Equal Credit Opportunity Act
C. CRA
D. RESPA
B. Equal Credit Opportunity Act
The ECOA prohibits lenders from discriminating based on race, sex,
religion, or national origin.
12. The Truth in Savings Act requires banks to:
Licensing Exam Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2025|2026 Q&A | Instant
Download Pdf
1. Which Texas statute governs the regulation of state-chartered banks?
A. Texas Trust Code
B. Texas Banking Act
C. Texas Securities Act
D. Texas Insurance Code
B. Texas Banking Act
The Texas Banking Act provides the statutory framework for the regulation
and supervision of state-chartered banks in Texas.
2. Who appoints the Texas Banking Commissioner?
A. Texas Governor
B. State Legislature
C. Finance Commission of Texas
D. Texas Supreme Court
C. Finance Commission of Texas
,The Finance Commission of Texas appoints the Banking Commissioner,
who serves as the chief executive of the Texas Department of Banking.
3. Which of the following is NOT a primary responsibility of the Texas
Department of Banking?
A. Supervising state-chartered banks
B. Regulating insurance companies
C. Licensing money services businesses
D. Supervising trust companies
B. Regulating insurance companies
The regulation of insurance companies is handled by the Texas Department
of Insurance, not the Texas Department of Banking.
4. The Bank Secrecy Act (BSA) primarily addresses:
A. Consumer lending disclosures
B. Deposit insurance
C. Anti-money laundering compliance
D. Credit card interest rates
C. Anti-money laundering compliance
The BSA focuses on preventing money laundering and requires banks to
report suspicious activities.
5. The threshold for filing a Currency Transaction Report (CTR) is:
A. $3,000
B. $5,000
C. $10,000
D. $20,000
C. $10,000
Banks must file a CTR for any transaction involving more than $10,000 in
currency in a single day.
, 6. What is the maximum deposit insurance coverage provided by the
FDIC per depositor, per bank?
A. $100,000
B. $150,000
C. $250,000
D. $500,000
C. $250,000
The FDIC insures up to $250,000 per depositor, per insured bank, for each
account ownership category.
7. Which federal agency is primarily responsible for enforcing consumer
protection laws in financial services?
A. FDIC
B. OCC
C. CFPB
D. SEC
C. CFPB
The Consumer Financial Protection Bureau (CFPB) enforces consumer
financial laws to ensure fairness in financial markets.
8. What is a key responsibility of a bank officer under the Texas Banking
Act?
A. Drafting state legislation
B. Supervising the Texas Department of Insurance
C. Ensuring the bank operates in a safe and sound manner
D. Approving mergers between national banks
C. Ensuring the bank operates in a safe and sound manner
Officers are responsible for maintaining the safety and soundness of the
bank under Texas regulations.
9. The Community Reinvestment Act (CRA) is designed to:
, A. Reduce interest rates
B. Prevent insider trading
C. Encourage lending in low- and moderate-income neighborhoods
D. Eliminate ATM fees
C. Encourage lending in low- and moderate-income neighborhoods
CRA ensures that banks meet the credit needs of all segments of their
communities.
10. A Texas bank must notify the Department of Banking of a branch
closure at least:
A. 10 days in advance
B. 30 days in advance
C. 60 days in advance
D. 90 days in advance
D. 90 days in advance
Advance notice ensures transparency and regulatory oversight of branch
closures.
11. Which law prohibits discrimination in credit transactions?
A. Truth in Lending Act
B. Equal Credit Opportunity Act
C. CRA
D. RESPA
B. Equal Credit Opportunity Act
The ECOA prohibits lenders from discriminating based on race, sex,
religion, or national origin.
12. The Truth in Savings Act requires banks to:
