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Exam CRCM topic 1 question 131 discussion

Actual exam question from ABA's CRCM
Question #: 131
Topic #: 1
[All CRCM Questions]

First National Bank would like to adopt a recordkeeping system that complies with the requirements of Regulation O. Which of the following best describes the recordkeeping system required by Regulation O?

  • A. A system in which the bank annually surveys all executive officers of First National and its affiliates to determine the insiders' related interests
  • B. A system in which the bank asks all borrowers as loans are made whether the borrower is a related interest of an insider
  • C. A system that surveys insiders of First National annually and requires each insider to disclose his or her related interests
  • D. A system that requires an annual survey of affiliate insiders
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Suggested Answer: C 🗳️

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Cam22
4 months ago
Selected Answer: C
Regulation O requires banks to establish and maintain recordkeeping systems to monitor and report insider transactions. This includes surveying insiders (executive officers, directors, and principal shareholders) annually to disclose any related interests they may have. This information is crucial for ensuring compliance with Regulation O and preventing conflicts of interest. Therefore, option C best describes the recordkeeping system required by Regulation O.
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