CRA1 - Community Reinvestment Act
c. A, B, and D are incorrect because they do not include all of the correct ratings used by CRA to report examination results.
1. The results of the CRA examinations are reported by ratings categories. What are the CRA ratings? A. Excellent, reasonable, needs to improve, probationary noncompliance B. Notable, satisfactory, needs to advance, significant noncompliance C. Outstanding, satisfactory, needs to improve, substantial noncompliance D. Exceptional, acceptable, needs to improve, substantial noncompliance ID:482F0CBD958C4A1387E89E58F0D08141
d. A, B, and C are incorrect because they are not terms applied to describe the practice of identifying allegedly poor investment risk areas on a map.
1. There is a term used to describe the practice of outlining specific areas on a map that are allegedly considered to be poor credit risk sections of the community. What is the term? A. Targeted selection B. Strategic planning C. Assessment lending D. Redlining ID:B79E1AF8F8D240669841E257F7309F7D
a. B, C, and D are incorrect because information contained in the CRA public file must be current as of April 1 each calendar year.
10. Institutions make the CRA public file available to the public and should be kept up-to-date. The CRA public file must be current as of what date in a calendar year? A. April 1 of each calendar year B. December 31 every two calendar years C. March 1 every three calendar years D. September 30 of each calendar year ID:AF0BBC54250B4E5DBB1C0F9E7BFEB9E4
a. B is incorrect because it will be examined using the appropriate test for large or small institutions if it includes such an option in its approved strategic plan. C is incorrect because if an institution chooses the strategic plan option, they are not evaluated under the small or large bank tests. D is incorrect because the strategic plan option must address the lending, investment and service criteria that would have been part of the usual evaluation.
10. Strategy Bank developed its own CRA strategic plan and is evaluated for CRA performance based on how well it meets the goals in that plan. Which statement is true regarding strategic plans under CRA rules? A. The strategic plan can cover the entire institution's performance or just a single assessment area B. If an institution does not receive at least a satisfactory rating in a CRA examination using its strategic plan, it will be rated again using its strategic plan C. If an institution chooses the strategic plan option, they are evaluated under the small or large bank tests D. The strategic plan option must address the deposit and service criteria that would have been part of the usual evaluation ID:CDDB556949EA4A50969861819EBC0B02
d. A is incorrect because there is no ''required'' number of employees. B is incorrect because there is no ''required'' number of employees and because the file will include branch addresses and all services available not just lending services. C is incorrect because the file will include branch addresses and all services available not just lending services.
10. The CRA public file must be made available to the public upon request. What information is found in this file? A. Map of the assessment area and number of employees required to monitor CRA activity B. Number of employees required to monitor CRA activity and lending services available C. Only lending services available and comment letters from individuals or businesses in the community on the institution's CRA performance D. Comment letters from individuals or businesses on the institution's CRA performance in the community and map of the assessment area ID:DE925233F6204642A146D8F05FB9A229
a. B, C, and D are incorrect because they do not include all of the correct ratings used by CRA to report examination results.
10. There are four ratings categories used to report the results of the CRA examinations. What are the ratings? A. Outstanding, satisfactory, needs to improve, substantial noncompliance B. Excellent, reasonable, needs to improve, probationary noncompliance C. Exceptional, acceptable, needs to improve, substantial noncompliance D. Notable, satisfactory, needs to advance, significant noncompliance ID:A93FABAA42D5447AA74F9335F66E156B
a. B, C, and D are incorrect because they are not terms applied to describe the practice of identifying allegedly poor investment risk areas on a map.
10. What is the term used to describe the practice that outlines a specific area on a map allegedly considered a poor credit risk section of the community? A. Redlining B. Targeted selection C. Strategic planning D. Assessment lending ID:7A1CDB0E52794248B95A83BC5F6E4FDE
b. A is incorrect because the community development test is generally used for wholesale or limited purpose financial institutions or for intermediate small institutions. C is incorrect because the lending, investment, and service test is generally used for large financial institutions. D is incorrect because the service test is part of the performance standard generally used by large financial institutions.
10. What type of performance standard do the agencies generally use to determine an intermediate small bank's CRA rating? A. Community development test B. Small bank lending and community development tests C. Lending, investment, and service tests D. Service test ID:6C042E87EA9C48F6B9DBEFC70D347C9F
b. A, C, and D are incorrect because the purpose of the CRA rating is to reflect how an institution is meeting its responsibilities to the community it serves.
2. Everywhere Bank has received its CRA rating. The rating reflects how Everywhere Bank is meeting its responsibilities to whom? A. HMDA B. Community it serves C. Federal Reserve D. FFIEC ID:51B174A4A9B9421B8AB85D629717439D
b. A, C, and D are incorrect because information contained in the CRA public file must be current as of April 1 each calendar year.
2. Information contained in the CRA public file must be current as of what date in a calendar year? A. December 31 of each calendar year B. April 1 of each calendar year C. March 1 of each calendar year D. September 30 of each calendar year ID:3CA58C21ADCD4BD7BF314F60B17F5292
c. A is incorrect because there is no ''required'' number of employees. B is incorrect because there is no ''required'' number of employees and because the file will include branch addresses and all services available not just lending services. D is incorrect because the file will include branch addresses and all services available not just lending services.
2. What type of information is found in the CRA public file that must be made available to the public upon request? A. Map of the assessment area and number of employees required to monitor CRA activity B. Number of employees required to monitor CRA activity and lending services available C. Comment letters from individuals or businesses on the institution's CRA performance in the community and map of the assessment area D. Only lending services available and comment letters from individuals or businesses in the community on the institution's CRA performance ID:929FCE7F595645149EE4F5CB6910B087
a. B is incorrect because the community development test is generally used for wholesale or limited purpose financial institutions or for intermediate small institutions. C is incorrect because the lending, investment, and service test is generally used for large financial institutions. D is incorrect because the service test is part of the performance standard generally used by large financial institutions.
2. Which type of performance standard do agencies generally use to determine an intermediate small bank's CRA rating? A. Small bank lending and community development tests B. Community development test C. Lending, investment, and service tests D. Service test ID:4743F67B8D164E8BB77430A117843060
b. A is incorrect because the emphasis was placed on the performance of the financial institution. C is incorrect because this split occurred in the 2005-2006 changes. D is incorrect because this definition was changed in the 2005-2006 changes.
3. In 1995 the focus of CRA was revised. Which statement best describes that significant change in focus? A. Greater emphasis was placed on the CRA process and less emphasis on the CRA performance of the financial institution B. Greater emphasis on CRA performance of the financial institution and less emphasis on its CRA process C. A split occurred between the agencies D. The definition of community development was changed ID:FF496B4382D448BA93DDB85F6EA4B6CD
d. A, B, and C are incorrect because financial institutions who choose to be evaluated using the strategic plan work with the community to create the plan which must be approved by their primary federal regulator.
3. The CRA rules allow financial institutions to create their own strategic plan for evaluation. Which statement best describes the development of a strategic plan? A. Plan developed by a committee made up of federal regulators and employees of the financial institution B. Plan developed by the board of directors of the financial institution and approved by the federal regulators C. Plan developed by the community with approval by the financial institution and the federal regulators D. Plan developed by the financial institution with input from the community and approval by the primary federal regulator ID:198E69D2FA574E53AF56525ACB8AB9DC
d. A, B, and C are incorrect because the purpose of the CRA rating is to reflect how an institution is meeting its responsibilities to the community it serves.
3. When an institution receives the CRA rating, it reflects how the institution is meeting its responsibilities to whom? A. HMDA B. Federal Reserve C. FFIEC D. Community it serves ID:2392545F3D7B47B4B7218B9CBE348179
b. A is incorrect because CRA does not negate the efforts of a financial institution to make safe and sound credit decisions. C is incorrect because CRA does not dictate the types of loans financial institutions must make. D is incorrect because CRA does not set a quota for the number of loans that must be approved.
3. Which statement best describes the primary purpose of the CRA? A. Encourages financial institutions to approve loans to low- and moderate-income individuals B. Encourages financial institutions to help meet the credit needs of the assessment area(s) they serve C. Encourages financial institutions to make certain types of loans available to low- and moderate-income individuals D. Encourages financial institutions to approve a required number of loans based on the population of the assessment area they serve ID:8DB66A4534CE4EB2AB8C028564AC26EF
b. A is incorrect because they are not evaluated under the small or large bank tests. C is incorrect because it can cover the entire institution's performance or just a single assessment area. D is incorrect because it will be examined using the appropriate test for large or small institutions if it includes such an option in its approved strategic plan.
4. Under CRA rules, institutions can choose to develop their own CRA strategic plan and be evaluated for CRA performance based on how well they meet the goals in that plan. Which statement is true concerning strategic plans? A. If an institution chooses the strategic plan option, they are evaluated under the small or large bank tests B. The strategic plan option must address the lending, investment, and service criteria that would have been part of the usual evaluation C. The strategic plan must cover the entire institution's performance D. If an institution does not receive at least a satisfactory rating in a CRA examination using its strategic plan, it will be rated again using its strategic plan ID:A0A4DDFAF37342C8A6CCBBB04FE037D3
a. B is incorrect because the emphasis was placed on the performance of the financial institution. C is incorrect because this split occurred in the 2005-2006 changes. D is incorrect because this definition was changed in the 2005-2006 changes.
5. Which statement best describes the 1995 revisions made to the focus of the CRA? A. Greater emphasis on CRA performance of the financial institution and less emphasis on its CRA process B. Greater emphasis was placed on the CRA process and less emphasis on the CRA performance of the financial institution C. A split occurred between the agencies D. The definition of community development was changed ID:83373CDAF02C4AA8B0454D4A0E4D60D0
c. A, B, and D are incorrect because financial institutions who choose to be evaluated using the strategic plan work with the community to create the plan which must be approved by their primary federal regulator.
5. Which statement best describes the development of a strategic plan? A. Plan developed by a committee made up of federal regulators and employees of the financial institution B. Plan developed by the board of directors of the financial institution and approved by the federal regulators C. Plan developed by the financial institution with input from the community and approval by the primary federal regulator D. Plan developed by the community with approval by the financial institution and the federal regulators ID:031ACFEECBDF41DBAE061C8E336A4E24
a. B, C, and D are incorrect because financial institutions who choose to be evaluated using the strategic plan work with the community to create the plan which must be approved by their primary federal regulator.
6. Financial institutions have the option of creating their own strategic plan for CRA evaluation. Which statement best describes the development of a strategic plan? A. Plan developed by the financial institution with input from the community and approval by the primary federal regulator B. Plan developed by a committee made up of federal regulators and employees of the financial institution C. Plan developed by the board of directors of the financial institution and approved by the federal regulators D. Plan developed by the community with approval by the financial institution and the federal regulators ID:ECABAFE12C2E46178811951C9D09659F
a. B, C, and D are incorrect because the purpose of the CRA rating is to reflect how an institution is meeting its responsibilities to the community it serves.
6. The CRA rating reflects how an institution is meeting its responsibilities to whom? A. Community it serves B. HMDA C. Federal Reserve D. FFIEC ID:9AEF1CF679CF4BA2B45295F36C492869
c. A, B, and D are incorrect because they are not terms applied to describe the practice of identifying allegedly poor investment risk areas on a map.
6. There was a time when areas that were allegedly considered poor credit risk sections of the community were outlined on a map. What is the term used to describe this practice? A. Targeted selection B. Strategic planning C. Redlining D. Assessment lending ID:4052A8EBA66E43438AC36DD9FB0AA435
d. A is incorrect because CRA does not negate the efforts of a financial institution to make safe and sound credit decisions. B is incorrect because CRA does not dictate the types of loans financial institutions must make. C is incorrect because CRA does not set a quota for the number of loans that must be approved.
6. What is the primary purpose of the CRA? A. Encourages financial institutions to approve loans to low- and moderate-income individuals B. Encourages financial institutions to make certain types of loans available to low- and moderate-income individuals C. Encourages financial institutions to approve a required number of loans based on the population of the assessment area they serve D. Encourages financial institutions to help meet the credit needs of the assessment area(s) they serve ID:CF560301D827447D86E4BF87A2370AFE
d. A, B, and C are incorrect because they do not include all of the correct ratings used by CRA to report examination results.
7. What are the ratings categories used to report the results of the CRA examinations? A. Excellent, reasonable, needs to improve, probationary noncompliance B. Exceptional, acceptable, needs to improve, substantial noncompliance C. Notable, satisfactory, needs to advance, significant noncompliance D. Outstanding, satisfactory, needs to improve, substantial noncompliance ID:235539852D94487AA08F044F5A824DBD
c. A is incorrect because the community development test is generally used for wholesale or limited purpose financial institutions or for intermediate small institutions. B is incorrect because the lending, investment, and service test is generally used for large financial institutions. D is incorrect because the service test is part of the performance standard generally used by large financial institutions.
7. When intermediate small banks are evaluated, what type of performance standard do the agencies generally use to determine its CRA rating? A. Community development test B. Lending, investment, and service tests C. Small bank lending and community development tests D. Service test ID:05793B8EE9804D96848D96C3331AA3AF
d. A is incorrect because the emphasis was placed on the performance of the financial institution. B is incorrect because this split occurred in the 2005-2006 changes. C is incorrect because this definition was changed in the 2005-2006 changes.
8. Significant revisions were made to the focus of CRA in 1995. Which statement best describes that change? A. Greater emphasis was placed on the CRA process and less emphasis on the CRA performance of the financial institution B. A split occurred between the agencies C. The definition of community development was changed D. Greater emphasis on CRA performance of the financial institution and less emphasis on its CRA process ID:7F917E4810864B4BA080F62DF96E7C02
d. A, B, and C are incorrect because information contained in the CRA public file must be current as of April 1 each calendar year.
8. There are several areas of information in the CRA public file. As of what date must the file be current in a calendar year? A. December 31 of each calendar year B. March 1 every two calendar years C. September 30 every two calendar years D. April 1 of each calendar year ID:EFAFDB5C59354EE98C03BC88EC8B5AA1
b. A is incorrect because it will be examined using the appropriate test for large or small institutions if it includes such an option in its approved strategic plan. C is incorrect because the strategic plan option must address the lending, investment and service criteria that would have been part of the usual evaluation. D is incorrect because it can cover the entire institution's performance or just a single assessment area.
8. Which statement is true when institutions choose to develop their own CRA strategic plan and be evaluated for CRA performance based on how well they meet the goals in that plan? A. If an institution does not receive at least a satisfactory rating in a CRA examination using its strategic plan, it will be rated again using its strategic plan B. If an institution chooses the strategic plan option, they are not evaluated under the small or large bank tests C. The strategic plan option must address the deposit and service criteria that would have been part of the usual evaluation D. The strategic plan must cover the entire institution's performance ID:726CFD76E84445ABA825BA7F9C093F2A
b. A is incorrect because there is no ''required'' number of employees. C is incorrect because there is no ''required'' number of employees and because the file will include branch addresses and all services available not just lending services. D is incorrect because the file will include branch addresses and all services available not just lending services.
9. Certain types of information must be made available to the public upon request. The information is found in the CRA public file. What information is found in this file? A. Map of the assessment area and number of employees required to monitor CRA activity B. Comment letters from individuals or businesses on the institution's CRA performance in the community and map of the assessment area C. Number of employees required to monitor CRA activity and lending services available D. Only lending services available and comment letters from individuals or businesses in the community on the institution's CRA performance ID:065DBE5D8CDF4FD5BC58CF543758EF2C
a. B is incorrect because CRA does not negate the efforts of a financial institution to make safe and sound credit decisions. C is incorrect because CRA does not dictate the types of loans financial institutions must make. D is incorrect because CRA does not set a quota for the number of loans that must be approved.
9. Which statement provides the most accurate description of the primary purpose of the CRA? A. Encourages financial institutions to help meet the credit needs of the assessment area(s) they serve B. Encourages financial institutions to approve loans to low- and moderate-income individuals C. Encourages financial institutions to make certain types of loans available to low- and moderate-income individuals D. Encourages financial institutions to approve a required number of loans based on the population of the assessment area they serve ID:3EE5A9147D5342F9BD254E7CA332EC12