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Banking CRCM Exam
CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) (Page 28 )

Updated On: 11-Jan-2026
Page 28 of 276
PDF with 463 Questions

Margin stock includes:

  1. Equity securities registered or having delisted trading privileges on a national securities exchange:
  2. Over-the-counter (OTC) securities that do not qualify for trading in the National Market System
  3. Warrants or rights to subscribe to or purchase a common stock
  4. Securities issued by a investment company registered under the Investment Company Act, except for:
    A company licensed under the Small Business Investment Company Act A company that has at least 95 percent of its assets continuously invested in exempted securities; or
    A company that issues face-amount certificates; or A company that is considered a money market fund under the SEC Rules

Answer(s): D



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

  1. To a bank auditor
  2. To a qualified employee stock ownership plan running previously but not now
  3. To 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
  4. To 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.

Answer(s): C,D



An exempted borrower is a member of a national securities exchange or a registered broker or dealer who:

  1. Maintains at least 1,000 active accounts annually for persons other than brokers, dealers, and persons associated with brokers and dealers
  2. Earns at least $10 million in gross revenues on an annual basis from transactions with persons other than brokers, dealers, and persons associated with brokers and dealers, or
  3. Earns at least 10 percent of its gross revenues on an annual basis from transactions with persons other than brokers, dealers, and persons associated with brokers and dealers
  4. None of these

Answer(s): A,B,C



____________ 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

  1. Regulation U
  2. Regulation V
  3. Regulation Z
  4. Regulation X

Answer(s): A



Under Consumer Leasing Act Enforcement-15 USC 1667d section FIRREA penalties include:

  1. Penalties up to $8,500 per day for violations of laws and regulations
  2. Penalties up to $37,500 per day if violations or unsafe or unsound practices are engaged in recklessly or are part of a pattern of misconduct that causes more than a minimal loss to the bank or any pecuniary gain to the parties involved
  3. Penalties up to $1,375,000 per day against persons who knowingly commit a violation and knowingly or recklessly cause a substantial loss to the bank or a substantial benefit to the party
  4. Penalties up to $9,500 per day for violations of laws and regulations

Answer(s): A,B



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