Question 1

A compliance professional’s responsibilities include all of the following EXCEPT:

Options :

A : Understanding the business units operating environment and risk tolerance

B : Performing risk assessments with the assistance of business units to determine current risk levels and risks associated with the bank’s products, lines of business, customers, and locations, among other factors

C : Working with business units to ensure prompt corrective action for any detected errors

D : Assisting business lines with compliance training for employees, as needed

Answer: D

Question 2

Which of the following is the best method for a large bank to use in monitoring its CRA performance?

Options :

A :

Review the effectiveness of marketing materials.

B : Evaluate approval and denial rates for minority loan applicants.

C : Perform a quarterly evaluation of the bank’s loans-to-deposits ratio.

D :

Perform a geographic analysis of lending levels and dispersion of loans.

Answer: D

Question 3

When is it permissible for a bank that is a government securities broker or dealer to refrain from

filing a Form G-FIN-5 or a Form MSD-5 when an employee terminates the associated person status?

Options :

A : When the employee files the form

B :

When the bank does not have all the necessary information and notifies its regulatory agency

C :

When the employee’s status is reinstated within six months

D : When the employee remains employed by the bank and the bank notifies its regulatory agency

Answer: D

Question 4

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer’s loan obligation on the occurrence of a specified event. It May be a part of the loan itself or a separate agreement.Does not include a loan payment deferral arrangement where the borrower or the bank can unilaterally defer a payment.What is it?

Options :

A : Debt suspension agreement (DSA)

B : Anti-dying

C : Debt cancellation contract (DCC)

D : ALLL

Answer: A

Question 5

By presentation or transmission of an item a Reserve Bank warrants to a subsequent collecting bank

and paying bank that:

Options :

A : The Reserve Bank has good title to the item

B : The item has not been altered

C :

The item bears all endorsements applied by parties that have previously handled the item in paper

or electronic form

D : All of these

Answer: D

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