American Bankers Association Exam CRCM Topic 7 Question 79 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 79
Topic #: 7

[All CRCM Questions]

For which of the following business activities must a bank holding company obtain prior approval of the Federal Reserve Board?

AOperating an auto club service

BServing as a safe deposit company

COperating as a management consulting firm for financial institutions

DSelling installment loan data processing

Show Suggested Answer

Suggested Answer: B

by Gracia at Dec 27, 2023, 12:58 PM

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Fletcher

1 months ago

I bet the Fed is just waiting for a bank to try and start selling used cars. 'Sorry, not on my watch!'

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Bettina

9 days ago

C) Operating as a management consulting firm for financial institutions

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King

18 days ago

B) Serving as a safe deposit company

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Mable

19 days ago

A) Operating an auto club service

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Gussie

1 months ago

Wait, they can't just open up a car wash on the side? Talk about diversifying your portfolio!

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Cassie

2 months ago

C) Operating as a management consulting firm for financial institutions - now that's a curve ball! Definitely not something a bank would do without getting the Fed's okay.

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Lavonna

13 hours ago

C) Operating as a management consulting firm for financial institutions

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Agustin

2 days ago

B) Serving as a safe deposit company

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Valentin

7 days ago

D) Selling installment loan data processing

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Jade

9 days ago

C) Operating as a management consulting firm for financial institutions

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Tori

10 days ago

B) Serving as a safe deposit company

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Chauncey

16 days ago

A) Operating an auto club service

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Thomasena

1 months ago

A) Operating an auto club service

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Goldie

2 months ago

D) Selling installment loan data processing is an interesting one. I could see that needing approval, but I'm not totally sure.

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Shawn

2 months ago

A) Operating an auto club service? That's a bit of a stretch for a bank holding company, don't you think?

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Refugia

14 days ago

Operating as a management consulting firm for financial institutions could be beneficial for a bank holding company.

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Latrice

30 days ago

C) Operating as a management consulting firm for financial institutions

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Arlean

1 months ago

I think serving as a safe deposit company would make more sense for a bank holding company.

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Lashaunda

1 months ago

B) Serving as a safe deposit company

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Geraldo

1 months ago

C) Operating as a management consulting firm for financial institutions

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Stacey

1 months ago

B) Serving as a safe deposit company

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Kris

1 months ago

I agree, operating an auto club service seems unrelated to banking.

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Evan

2 months ago

I'm not sure, but I think C) Operating as a management consulting firm for financial institutions might also require approval due to potential conflicts of interest.

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Krissy

2 months ago

I agree with Joye, because holding deposits is a core banking activity that requires regulatory approval.

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Joye

2 months ago

I think the answer is B) Serving as a safe deposit company.

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Justine

2 months ago

B) Serving as a safe deposit company seems like the most likely answer. Banks typically need approval for activities outside their core banking services.

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