Question 1

Which of the following banks CANNOT select Montana as its home state for deposit production purposes?

Options :

A : ABC National Bank with its headquarters in Missoula, Montana

B : XYZ State Bank, with a Montana state charter

C : ACME National Bank with its headquarters in Minneapolis, MN, but with most of its branches and the majority of its loans in Montana

D : Friendly Bank, a U.S. branch of a foreign bank with two U.S. locations, one in Montana and one in Wyoming

Answer: C

Question 2

On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

Options :

A : A loan made to purchase a family car, secured by the car

B : An unsecured loan made to purchase a computer used in the borrower’s business

C : A loan made to purchase a residence, secured by the residence

D : A loan made to purchase a home computer, secured by the computer

Answer: C

Question 3

The Fair Credit Reporting Act (FCRA) became effective in 1971. The purpose of FCRA is to regulate:

Options :

A : The consumer credit reporting and related industries to ensure that consumer information is reported in an accurate manner

B : The consumer credit reporting and related industries to ensure that consumer information is reported in a timely manner

C : The consumer credit reporting and related industries to ensure that consumer information is reported in an accurate, timely, and complete manner

D : None of these

Answer: C

Question 4

An electronic image of an item together with electronic information describing that item in anapproved format will be considered a valid instrument. Common forms of instruments are thefollowing EXCEPT:

Options :

A : Checks: Drafts drawn on a bank and payable on demand

B : Pay checks

C : Cash items: Checks or other items payable on demand and collectible at par and accepted at the Reserve Bank

D : Noncash items: Items that a Reserve Bank classifies as requiring special handling

Answer: B

Question 5

Martha Smith of First National Bank is attempting to close a large commercial loan to a manufacturing equipment company. In negotiating the interest rate on the loan Martha states that if the company will move some of its demand accounts to the bank, it could get a lower interest rate. Is this wrong?

Options :

A : Yes. It violates the anti-tying provisions.

B : Yes. It is a restraint of trade.

C : No, unless moving the accounts is a condition of the loan..

D : No. The bank may condition the loan on the customer placing a deposit in the bank.

Answer: D

Free CRCM Mock Exam – Practice Online Confidently

Buying Options: