American Bankers Association CRCM Exam - 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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Xuan

4 months ago

I thought selling data processing was a free-for-all!

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Rosina

4 months ago

Safe deposit companies definitely require it.

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Joana

4 months ago

Wait, do they really need approval for auto clubs?

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Janae

5 months ago

Totally agree, it's a big deal!

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Freeman

5 months ago

Banks need approval for management consulting.

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Vallie

5 months ago

I recall something about safe deposit companies needing approval, but I can't remember if it's specifically for bank holding companies.

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Margart

5 months ago

I’m really uncertain about this one. I thought all these activities were allowed without prior approval, but now I’m second-guessing myself.

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Jerrod

5 months ago

I feel like we practiced a similar question about consulting firms and their regulatory requirements. I think that might be the right answer.

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Franklyn

6 months ago

I think I remember that banks need approval for activities that are closely related to banking, but I'm not sure which one it is here.

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Jacquline

6 months ago

I'm a little unsure, but I'll give it my best shot and make an educated guess.

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Louvenia

6 months ago

I remember learning about this in class. I'm pretty confident I know the right answer.

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Adela

6 months ago

Hmm, I'm not too sure about this one. I'll need to think it through carefully.

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Kerry

6 months ago

This question seems straightforward, I think I can figure this out.

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Fletcher

6 months ago

Okay, let me break this down step-by-step. I need to focus on the key details about bank holding companies.

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Trinidad

6 months ago

Hmm, this one seems straightforward. I think the answer is Downstream, since that's the segment that deals with the retail side of the oil and gas industry.

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Rolande

6 months ago

Hmm, I'm not totally sure about this one. Is it something to do with the Export Administration Regulations (EAR)? I know those cover commercial and dual-use tech exports.

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Yun

6 months ago

Wait, aren't both originator ID and cluster ID important in route reflection? I feel like I saw a question similar to this in practice.

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Fletcher

10 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

10 months ago

C) Operating as a management consulting firm for financial institutions

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King

10 months ago

B) Serving as a safe deposit company

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Mable

10 months ago

A) Operating an auto club service

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Gussie

11 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

11 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

9 months ago

C) Operating as a management consulting firm for financial institutions

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Agustin

9 months ago

B) Serving as a safe deposit company

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Valentin

10 months ago

D) Selling installment loan data processing

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Jade

10 months ago

C) Operating as a management consulting firm for financial institutions

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Tori

10 months ago

B) Serving as a safe deposit company

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Chauncey

10 months ago

A) Operating an auto club service

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Thomasena

10 months ago

A) Operating an auto club service

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Goldie

11 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

11 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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Dorathy

9 months ago

Selling installment loan data processing might require approval from the Federal Reserve Board.

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Refugia

10 months ago

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

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Latrice

10 months ago

C) Operating as a management consulting firm for financial institutions

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Arlean

10 months ago

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

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Lashaunda

11 months ago

B) Serving as a safe deposit company

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Geraldo

11 months ago

C) Operating as a management consulting firm for financial institutions

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Stacey

11 months ago

B) Serving as a safe deposit company

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Kris

11 months ago

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

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Evan

12 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

12 months ago

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

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Joye

12 months ago

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

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Justine

12 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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