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Banking CRCM Exam
CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) (Page 40 )

Updated On: 11-Jan-2026
Page 40 of 276
PDF with 463 Questions

Bank B is a correspondent of Bank A. Which of the following must be included in Bank A's calculation of credit exposure to Bank B?

  1. A loan to Mr. Pierce from Bank A secured by Bank B common stock
  2. Bank B's purchase of U.S. government T-Bills on behalf of Bank A under an overnight repurchase arrangement
  3. Bank A's deposit account of $1 million in Bank B
  4. A letter of credit issued by Bank B and pledged against the ACME Company's debt at Bank A

Answer(s): C



Which of the following is NOT a requirement of Regulation F?

  1. Writing and maintaining policies and procedures for managing exposure to correspondent banks
  2. Monitoring the exposure to correspondent banks on a regular basis
  3. Establishing internal limits on exposure to correspondents
  4. Providing quarterly reports to the board of directors of compliance audit results

Answer(s): D



Which of the following loans is clearly NOT subject to the IRS mortgage interest reporting requirement?

  1. A loan made to purchase securities, secured by rural acreage
  2. A loan made to finance a college education, secured by a piece of commercial real estate
  3. A loan made to purchase a lot on a lake, secured by a certificate of deposit
  4. A loan made to purchase a residence, secured by the dwelling

Answer(s): C



First National Bank receives a notice from the IRS to begin withholding 28 percent of the interest payments on the money market savings account of Myra Wilcox because of payee underreporting. What is the most proper action for First National Bank to take?

  1. Send a notice to Ms. Wilcox within 15 days of the receipt of the IRS notice and begin withholding; stop withholding if Ms. Wilcox can prove to the bank that she is not underreporting
  2. Begin withholding and send a notice to Ms. Wilcox within 15 days of beginning the withholding; stop withholding only on written notice from the IRS
  3. Begin withholding with the first payment after 30 days and send a notice to Ms.
    Wilcox at least 15 days before the first payment from which funds are to be withheld; stop withholding only on written notice from the IRS
  4. Send notice to Ms. Wilcox within 15 days of the receipt of the IRS notice and begin backup withholding with the first payment following 30 days after the notice; stop withholding only on written notice from the IRS

Answer(s): B



On March 1, First National Bank opened three accounts:
1) a savings account for Margaret Nelson, who did not have a TIN but signed a certification that she had applied for one;
2) a money market savings account for Linda Miller, who could not remember her TIN but promised to provide it at the earliest possible date; and
3) a certificate of deposit for John Whiteside, who completed a Form W-9 but provided a TIN with only eight numbers. Ms. Nelson provided her newly acquired TIN to the bank on April 15, Ms. Miller provided her TIN on April 5, and Mr. Whiteside provided his TIN to the bank on March 10. Interest was paid on all of these accounts on March 31, and the bank withheld 28 percent of the interest payments. On April 20 all the payees requested that the withheld interest be refunded. What should the bank do?

  1. Refund the withheld interest to all payees
  2. Refund to Ms. Nelson and Mr. Whiteside because the interest was erroneously withheld
  3. Refund only to Mr. Whiteside because the interest was erroneously withheld
  4. Refund only to Ms. Nelson because the interest was erroneously withheld

Answer(s): B



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