Question 1

The OCC recommends all but one of the following actions to help prevent a national bank’s

purchasing or acquiring predatory or abusive loans. Which practice is NOT recommended?

Options :

A :

Establish policies on the bank’s relationship with third-party brokers and originators

B : Review loan documentation

C : Audit the third-party broker

D : Require the broker to establish a reserve account for legal contingencies

Answer: D

Question 2

An electronic image of an item together with electronic information describing that item in an

approved format will be considered a valid instrument. Common forms of instruments are the

following 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 3

How long after discovery does a bank have to report any lost or missing securities when criminal activity is suspected?

Options :

A : 90 calendar days

B : 1 business day

C : Never. Law enforcement must report

D : 10 business days

Answer: B

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

A routine review of account records reveals that suspicious activity involving foreign currency has occurred in the account of one of the bank’s directors. Which of the following actions should be taken FIRST?

Options :

A : A SAR should be filed.

B : The bank’s board of directors should discuss the account activity without the affected director being present.

C : The bank’s president should meet with the affected director to discuss the account activity.

D : . The bank should file a CTR, checking the box that indicates the report is for suspicious activity.

Answer: A