Question No. 1

Which of the following loans would First National report on its loan application register?

AA refinancing of the balance of a home purchase loan made five years earlier, both loans will be secured by dwellings

BA loan made to a couple, secured by their home, to pay for their children's education

CA bridge loan made to a newly transferred executive of a local company

DA loan made to construct a principal dwelling

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Correct Answer: A

Question No. 2

Banks may extend and maintain purpose credit without complying with Regulation U if the credit is extended:

ATo a bank auditor

BTo a qualified employee stock ownership plan running previously but not now

CTo any customer, other than a broker or dealer, to temporarily finance the purchase or sale of securities for prompt delivery, if the credit is to be repaid in the ordinary course of business on the completion of the transaction

DTo enable a customer to meet emergency expenses not reasonably foreseen and if the bank obtains a good faith statement from the customer. Emergency expenses are ones related to unforeseen death or disability, not a chance to make a profit.

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Correct Answer: C, D

Question No. 3

Under Regulation M, what is a ''consumer lease''?

AAny lease of $25,000

BA consumer lease for $25,000 or less with an option to own the property after the lease expires

CA consumer lease for $25,000 or less for the use of personal property

DAny consumer or agricultural lease for $25,000 or less

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Correct Answer: C

Question No. 4

Government credit

AIt is credit extended to governments or government agencies, instrumentalities, or subdivisions

BIt has no finance charge

CIt has Records retention requirements

DOnly the general rule against discrimination applies to government credit

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Correct Answer: A, D

Question No. 5

Which of the following describes the record retention requirements under Regulation Bfor a credit application from a business with annual gross revenues in excess of$1,000,000?

AThe bank must retain records for 30 days; however, if a written statement of action isrequested, the bank must retain the records for 90 days.

BAfter 6 months, the bank must dispose of the applications and records in accordancewith waste disposal rules promulgated by the EPA.

CThe bank must retain records for 12 months if a written statement of adverse action isrequested within 60 days after notifying the applicant of the action taken.

DThe bank must retain records for 25 months from the date of application.

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Correct Answer: C

Free American Bankers Association CRCM Exam Actual Questions

The questions for CRCM were last updated On Nov 19, 2024