Question 1

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 2

Below mentioned is the necessary information that should be included in the___________. Risk of payment shock—potential payment increases; how the new payment will be calculated when the introductory rate expires Ramifications of prepayment penalties—how they will be calculated, when they will be imposed Ramifications of balloon payments Ramifications of the lack of escrowing for taxes and insurance—who is responsible for paying taxes and insurance and the fact that their costs may be substantial Cost of reduced documentation loans—whether there is a pricing premium required

Options :

A : Consumer protection principles

B : Underwriting standards

C : Workout arrangements

D : None of these

Answer: A

Question 3

_____________requires that a statement of purpose be obtained from borrowers whose loans are to be greater than $100,000 and that will be secured by margin stock. Loans made for the purpose of purchasing margin stock are subject to additional limitations

Options :

A : Regulation U

B : Regulation V

C : . Regulation Z

D : Regulation X

Answer: A

Question 4

When is it permissible for a bank that is a government securities broker or dealer to refrain from

filing a Form G-FIN-5 or a Form MSD-5 when an employee terminates the associated person status?

Options :

A : When the employee files the form

B :

When the bank does not have all the necessary information and notifies its regulatory agency

C :

When the employee’s status is reinstated within six months

D : When the employee remains employed by the bank and the bank notifies its regulatory agency

Answer: D

Question 5

A compliance professional’s responsibilities include all of the following EXCEPT:

Options :

A : Understanding the business units operating environment and risk tolerance

B : Performing risk assessments with the assistance of business units to determine current risk levels and risks associated with the bank’s products, lines of business, customers, and locations, among other factors

C : Working with business units to ensure prompt corrective action for any detected errors

D : Assisting business lines with compliance training for employees, as needed

Answer: D