Question 1

Which of the following interest-bearing accounts is EXEMPT from Form 1099 annual information reporting requirements under IRS regulations?

Options :

A : Time certificates of deposit

B : Money market deposit accounts

C : Individual retirement accounts

D : Negotiable order of withdrawal accounts

Answer: C

Question 2

Bob Richardson has had three loan applicants this morning:• Heather Smith, age 17, who needs a car loan for $9,500 for 3 years• John Bako, age 42, who would like a stock loan for $15,000 for 1 year• Maynard Williams, age 70, recently retired, who needs a $50,000 home improvement loan for 12years Bob’s bank uses a judgmental credit evaluation system. For which of these applications is Bobable to consider the age of the applicant as a factor in the decision making process?

Options :

A : All of them

B : None of them

C : Only Mr. Williams

D : Mr. Williams and Ms. Smith

Answer: D

Question 3

Which one of the following is out of the FIRREA penalties included in the enforcement section of Adjusted Mortgage Regulation (12 CFR 34)?

Options :

A : Penalties up to $7,500 per day for violations of laws and regulations

B : Penalties up to $47,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved

C : Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party

D : Penalties up to $6,500 per day for violations of laws and regulations

Answer: A,C

Question 4

Under content of disclosures long term disclosures may include the following, as applicable EXCLUDING:

Options :

A : Notification that the product is optional

B : Explanation of debt-suspension agreement

C : Lump-sum payment of fee with no refund

D : Refund of fee paid in lump sum

Answer: D

Question 5

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

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