Question 1

Martha Smith of First National Bank is attempting to close a large commercial loan to a manufacturing equipment company. In negotiating the interest rate on the loan Martha states that if the company will move some of its demand accounts to the bank, it could get a lower interest rate. Is this wrong?

Options :

A : Yes. It violates the anti-tying provisions.

B : Yes. It is a restraint of trade.

C : No, unless moving the accounts is a condition of the loan..

D : No. The bank may condition the loan on the customer placing a deposit in the bank.

Answer: D

Question 2

Electronic funds transfers’ requirements say that transfers that vary in amount must be communicated to the designated payee within _______________before the scheduled transfer or may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts.

Options :

A : 10 days

B : 20 days

C : 30 days

D : 15 days

Answer: A

Question 3

When conducting a records search pursuant to a FinCEN request, what must a bank search?

Options :

A : All customer records from the previous five years

B : All accounts maintained within the previous 12 months and transaction records for 6 months

C : Only records that can be electronically searched

D : Nothing; searches are voluntary

Answer: B

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

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

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