CCT Key Federal Regulations 2 — Questions and Answers
Question 1: Under the Bank Secrecy Act (BSA), what is the threshold for filing a Currency Transaction Report (CTR)?
- $5,000 in a single transaction
- $10,000 in a single day (Correct answer)
- $25,000 in a single transaction
- $50,000 in a calendar month
Correct answer: $10,000 in a single day
The BSA requires financial institutions to file a CTR for cash transactions exceeding $10,000 in a single business day.
Question 2: Which federal law established the Consumer Financial Protection Bureau (CFPB)?
- Gramm-Leach-Bliley Act
- Dodd-Frank Wall Street Reform and Consumer Protection Act (Correct answer)
- Sarbanes-Oxley Act
- Fair Credit Reporting Act
Correct answer: Dodd-Frank Wall Street Reform and Consumer Protection Act
The Dodd-Frank Act of 2010 created the CFPB to regulate consumer financial products and services.
Question 3: The Equal Credit Opportunity Act (ECOA) prohibits discrimination based on all of the following EXCEPT:
- Race and national origin
- Credit score and payment history (Correct answer)
- Sex and marital status
- Age and religion
Correct answer: Credit score and payment history
ECOA prohibits credit discrimination based on protected characteristics; credit scores and payment history are legitimate underwriting factors.
Question 4: Under the Truth in Lending Act (TILA), what must lenders disclose using the Annual Percentage Rate (APR)?
- The total principal amount of the loan
- The true cost of credit including fees and interest (Correct answer)
- The monthly payment amount only
- The collateral value securing the loan
Correct answer: The true cost of credit including fees and interest
TILA requires disclosure of the APR, which reflects the true cost of credit by incorporating fees and interest into a standardized rate.
Question 5: Which regulation implements the Home Mortgage Disclosure Act (HMDA)?
- Regulation B
- Regulation C (Correct answer)
- Regulation E
- Regulation Z
Correct answer: Regulation C
Regulation C implements HMDA, requiring covered lenders to collect and report data on home loan applications and originations.
Question 6: The Right to Financial Privacy Act (RFPA) primarily restricts which entity from accessing customer financial records?
- State tax authorities
- Federal government agencies (Correct answer)
- Private credit reporting agencies
- Foreign financial institutions
Correct answer: Federal government agencies
The RFPA limits the ability of federal government agencies to obtain customer financial records from financial institutions without proper authorization.
Question 7: Under the USA PATRIOT Act, financial institutions must establish Customer Identification Program (CIP) procedures as part of which broader requirement?
- Know Your Customer (KYC) (Correct answer)
- Anti-Money Laundering (AML)
- Suspicious Activity Reporting (SAR)
- Currency Transaction Reporting (CTR)
Correct answer: Know Your Customer (KYC)
CIP is a core component of the KYC framework, requiring institutions to verify the identity of customers opening accounts.
CCT Key Federal Regulations 2
Under the Bank Secrecy Act (BSA), what is the threshold for filing a Currency Transaction Report (CTR)?