ExamTopics Logo
Mail Us[email protected]
Menu
Aba Discussions
exam questions

Exam CRCM All Questions

View all questions & answers for the CRCM exam
Go to Exam

Exam CRCM topic 1 question 29 discussion

Actual exam question from ABA's CRCM
Question #: 29
Topic #: 1
[All CRCM Questions]

Safety and soundness concerns in FDIC Payday Lending Guidance clearly mention that there should be adequate capital as Minimum capital requirements are not enough to offset the risks of payday loans. Banks should hold capital against its subprime portfolio in amounts:

  • A. That are 1½ to 5 times greater than normal
  • B. That are 1½ to 3 times greater than normal
  • C. That are 1½ to 3 times lower than normal
  • D. That should be between 2-5 in comparison to normal
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️
by JessyJazz24 at Oct. 4, 2023, 11:01 p.m.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Submit Cancel
Cam22
4 months ago
This reflects the FDIC's guidance that the inherent risks associated with payday lending require banks to hold more capital than the minimum requirements, specifically in the range of 1½ to 3 times greater than what would be considered normal for less risky lending activities. This additional capital is meant to provide a buffer against the high risk of loss inherent in payday lending.
upvoted 1 times
...
JessyJazz24
9 months, 2 weeks ago
Selected Answer: B
Greater the previous
upvoted 1 times
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago