Question 1

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 2

Your bank’s president comes back from an industry conference and tells the compliance officer that

she attended a presentation about OFAC. She heard the bank could be fined for not adhering to OFAC

requirements. Thus, she has directed that every bank transaction be reviewed for OFAC compliance.

What is the most appropriate statement the compliance officer could make to the bank president?

Options :

A : The bank is already in compliance because OFAC checks are performed on all new depositors

B : The bank has assessed its OFAC risk and has implemented risk-based OFAC procedures

C : OFAC does not apply because the bank does not conduct business in foreign countries or with foreign nationals

D : Banks are usually not fined for OFAC violations unless they conduct transactions with SDNs or blocked countries

Answer: B

Question 3

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 4

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

Question 5

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 12

years Bob’s bank uses a judgmental credit evaluation system. For which of these applications is Bob

able 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

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