Question 1

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 2

Second National has decided to close one of its less profitable neighborhood branches. Which of the following actions is NOT required of the bank under federal law?

Options :

A : Publish a notice of the closing in the local newspaper

B : Send a notice to its regulatory agency

C : Send notices to the branch customers

D : Post a notice at the branch

Answer: A

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

Which of the following banks CANNOT select Montana as its home state for deposit production purposes?

Options :

A : ABC National Bank with its headquarters in Missoula, Montana

B : XYZ State Bank, with a Montana state charter

C : ACME National Bank with its headquarters in Minneapolis, MN, but with most of its branches and the majority of its loans in Montana

D : Friendly Bank, a U.S. branch of a foreign bank with two U.S. locations, one in Montana and one in Wyoming

Answer: C

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

Higher Test Marks with Free Online CRCM Exam Practice

Buying Options: