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American Bankers Association Exam CRCM Topic 1 Question 103 Discussion

Actual exam question for American Bankers Association's CRCM exam
Question #: 103
Topic #: 1
[All CRCM Questions]

First National Bank advises Country A, a boycotting country, on various U.S. investments. Country A instructs First National Bank not to recommend for investment any shares of certain blacklisted companies. First National Bank follows this instruction. Has First National Bank participated or cooperated in an international boycott under the IRS regulations by this action?

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Suggested Answer: B

by Dierdre at Nov 13, 2024, 09:24 AM

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Salena
2 months ago
Ah, the age-old dilemma of banking and international relations. I'd say B is the way to go. The bank is simply exercising its business judgment, not actively participating in a boycott. Gotta stay neutral, you know?
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Olga
1 months ago
Ah, the age-old dilemma of banking and international relations. I'd say B is the way to go. The bank is simply exercising its business judgment, not actively participating in a boycott. Gotta stay neutral, you know?
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Carlton
2 months ago
B) No. The bank may agree not to recommend certain companies.
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Candra
2 months ago
A) Yes. The companies are the subject of a boycott.
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Audrie
3 months ago
Haha, this question is a real head-scratcher! I'm going to go with D. The bank should report this to the IRS, just to cover their bases. You never know when the tax man might come knocking.
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Annalee
2 months ago
Definitely, you don't want any trouble with the tax authorities.
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Lon
2 months ago
I agree, it's always best to follow regulations.
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Serita
2 months ago
Yeah, it's better to be transparent with these things.
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Roosevelt
3 months ago
I think the bank should report this to the IRS, just to be safe.
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Shawnee
3 months ago
But the companies are blacklisted, so it does seem like a boycott.
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Quentin
3 months ago
I disagree, the bank is just following Country A's instructions.
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Jimmie
3 months ago
Hmm, I'm not so sure. I think C is the correct answer. If the companies are part of an international boycott, then the bank is cooperating in that boycott by following the instructions. Seems like a gray area to me.
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Shawnee
3 months ago
I think the bank has participated in a boycott.
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Rebeca
4 months ago
I think the answer is B. The bank has the right to decide which companies to recommend, even if it's based on a boycott. As long as they aren't actively participating in the boycott, they're in the clear.
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Avery
2 months ago
That makes sense. So the answer is B, right?
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Delsie
3 months ago
No, because they are not actively supporting the boycott, just following instructions.
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Eugene
3 months ago
But wouldn't that still be considered participating in the boycott?
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Paul
3 months ago
I think the answer is B. The bank has the right to decide which companies to recommend, even if it's based on a boycott. As long as they aren't actively participating in the boycott, they're in the clear.
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Quinn
3 months ago
I agree with you, the bank is just following the instructions given by Country A.
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Janella
3 months ago
B) No. The bank may agree not to recommend certain companies.
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Tammy
3 months ago
A) Yes. The companies are the subject of a boycott.
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