age 1 of 37
FDIC TE TEST STUDY GUIDE 2025/2026 ACCURATE
QUESTIONS AND VERIFIED CORRECT SOLUTIONS
WITH RATIONALES || 100% GUARANTEED PASS
<RECENT VERSION>
What does the ROCA rating system rate? ......ANSWER........Risk
Management
Operational Controls
Compliance
Asset Quality
What are the mandatory provisions under Section 38 applicable
to Undercapitalized banks? ......ANSWER........Immediately after
receiving notice (or deemed to have notice) [Call Report, receipt
of ROE, written FDIC notice] bank is subject to Sec 38 of FDI Act:
,age 2 of 37
-restricting capital distributions and management fees
-requires FDIC to monitor condition of bank
-requires submission of a Capital Restoration Plan
-restrict asset growth of bank
-prior approval required for acquisitions, branching, and new
lines of business
324.405(a)(2)
If a lease meets one or more of what 4 criteria to be accounted
Capitalized Lease? ......ANSWER........Ownership of property
transferred to lessee @ end of lease term
lease term contains bargain purchase option
,age 3 of 37
lease term represents at least 75% of est. economic life of asset
PV of minimum lease payments at beginning of lease is 90% or
more of the FV of the leased property to lessor less any related
investment tax credit expected to be realized by lessor.
How should a capitalized lease be reported on the Call Report
......ANSWER........Reported in P&FA @ PV of the minimum req.
lease payments over the non-cancellable term & PV of BPO
payment less portion of payments for admin expense. Property
amortized according to bank's (lessee's) normal depreciation
policy.
What are the 5 methods of accounting for dispositions of ORE?
(ASC 360) ......ANSWER........Full accrual
Installment
, age 4 of 37
Cost Recovery
Reduced Profit
Deposit Method
What defines a full-scope exam? ......ANSWER........Procedures
necessary to complete mandatory ROE pages + evaluate all
components of the UFIRS/CAMELS ratings
All exam activities are considered in the overall assessment of
the bank including:
risk mgmt, IT, BSA/AML, OFAC, Trust, Registered transfer agent,
muni securities dealer, gov't securities dealer, as applicable
What are the mandatory ROE pages? ......ANSWER........Cover
Page
FDIC TE TEST STUDY GUIDE 2025/2026 ACCURATE
QUESTIONS AND VERIFIED CORRECT SOLUTIONS
WITH RATIONALES || 100% GUARANTEED PASS
<RECENT VERSION>
What does the ROCA rating system rate? ......ANSWER........Risk
Management
Operational Controls
Compliance
Asset Quality
What are the mandatory provisions under Section 38 applicable
to Undercapitalized banks? ......ANSWER........Immediately after
receiving notice (or deemed to have notice) [Call Report, receipt
of ROE, written FDIC notice] bank is subject to Sec 38 of FDI Act:
,age 2 of 37
-restricting capital distributions and management fees
-requires FDIC to monitor condition of bank
-requires submission of a Capital Restoration Plan
-restrict asset growth of bank
-prior approval required for acquisitions, branching, and new
lines of business
324.405(a)(2)
If a lease meets one or more of what 4 criteria to be accounted
Capitalized Lease? ......ANSWER........Ownership of property
transferred to lessee @ end of lease term
lease term contains bargain purchase option
,age 3 of 37
lease term represents at least 75% of est. economic life of asset
PV of minimum lease payments at beginning of lease is 90% or
more of the FV of the leased property to lessor less any related
investment tax credit expected to be realized by lessor.
How should a capitalized lease be reported on the Call Report
......ANSWER........Reported in P&FA @ PV of the minimum req.
lease payments over the non-cancellable term & PV of BPO
payment less portion of payments for admin expense. Property
amortized according to bank's (lessee's) normal depreciation
policy.
What are the 5 methods of accounting for dispositions of ORE?
(ASC 360) ......ANSWER........Full accrual
Installment
, age 4 of 37
Cost Recovery
Reduced Profit
Deposit Method
What defines a full-scope exam? ......ANSWER........Procedures
necessary to complete mandatory ROE pages + evaluate all
components of the UFIRS/CAMELS ratings
All exam activities are considered in the overall assessment of
the bank including:
risk mgmt, IT, BSA/AML, OFAC, Trust, Registered transfer agent,
muni securities dealer, gov't securities dealer, as applicable
What are the mandatory ROE pages? ......ANSWER........Cover
Page
