What is the term for the refusal of a bank to lend money to low-income communities while, at the same time, accepting deposits from those areas?

moral hazard

redlining

CAMELS

finance charge

Which of the following would an examiner most likely use to evaluate a bank's compliance with the Community Reinvestment Act?

accurate information on a savings account brochure

segregation of duties

diversity of loan distribution in the bank's community

none of the above

The Community Reinvestment Act requires that

city governments restore declining areas of the community.

banks help meet the credit needs of their community.

banks must be a member of the Federal Reserve System before dealing in securities.

citizens deposit money in a bank within their community.

What are CAMELS ratings?

an acronym for the process of rating a bank on its security system

a measure of fluctuations in interest rates

an acronym used by safety and soundness examiners, which stands for the six components of a bank's condition

none of the above

Which of the following is one of the four primary goals of banking supervision and regulation?

Provide financial services for the federal government.

Promote an efficient and competitive financial system.

Regulate discount window activites.

None of the above.

Which of the following is not one of the "5-Cs" used to rate the quality of a loan?

collateral

character

capital

call report

A bank is examined in which of the following areas?

safety and soundness

community reinvestment

consumer affairs

all of the above

Which of the following entities is not a bank regulator?

Bureau of the Public Debt

Federal Reserve

Office of the Comptroller of the Currency

Federal Deposit Insurance Corporation

What is a bank's primary source of income?

interest on loans made to borrowers

fees on checking accounts

fees on savings accounts

transaction fees on automatic debit cards

Which of the following information should you find in a bank's brochure for a savings account?

average percentage yield

any minimum balance required

any monthly service fee

all of the above