Question 1

Which of the following is NOT a requirement when a bank pays an employee a fee for referring ahigh-net-worth or institutional customer to a broker?

Options :

A : The bank must have a written agreement with the broker

B : The bank must give a disclosure to the customer

C : The bank must reasonably believe that the customer is a high net worth or institutional customer

D : The employee must be registered with the bank’s regulatory agency

Answer: D

Question 2

Credit scoring systems:

Options :

A : Evaluate an applicant’s creditworthiness mechanically, based on key attributes of the applicant and aspects of the transaction, and determine, alone or in conjunction with an evaluation of additional information about the applicant, whether an applicant is deemed creditworthy

B : Are evaluated by regulatory agencies to determine whether they are empirically derived and statistically sound and to examine: The bank’s policies on the use of the credit scoring system Training of bank employees on the use of the system The number of high-side and low-side overrides of the system

C : Both of these

D : None of these

Answer: C

Question 3

Your institution has identified a transaction by an existing depositor that should be blocked underOFAC requirements. The branch manager contacts you for specific instructions. Before reporting thetransaction to OFAC, what should the bank do?

Options :

A : Reject the transaction

B : Process the transaction

C : Close the customer’s account

D : Place the funds in an interest-bearing account

Answer: D

Question 4

It means a direction by the consumer that the financial institution not discloses nonpublic personal information about the consumer to a non-affiliated third party, except as permitted by the regulation. What is it?

Options :

A : Opt-out

B : Re-disclosure

C : Non-affiliated

D : Both B and C

Answer: A

Question 5

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

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