American Bankers Association CRCM Exam - Topic 10 Question 26 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 26
Topic #: 10

[All CRCM Questions]

Country A (a foreign country that is boycotting Country B, another foreign country) has ordered goods from ABC, a U.S. corporation. Country A has opened a letter of credit with Overseas, Inc., a foreign bank. The letter of credit specifies that ABC must certify that it does not do business with Country B. Overseas, Inc., sends a telegram to First National Bank, a U.S. bank, stating the major terms and conditions of the letter of credit and asking First National Bank to confirm the letter of credit. The telegram does not state the boycott provisions. Overseas mails the letter of credit to First National Bank and asks First National Bank to confirm it. What may First National Bank do?

AFirst National Bank must confirm it if it previously agreed to do so.

BFirst National Bank may advise ABC of the letter of credit and administer its disposal, but may not confirm it and must report it to the Department of Commerce and the IRS.

CFirst National Bank may do nothing but return the letter of credit to the issuing bank and report to the IRS.

DFirst National Bank must confirm the letter of credit but should also report it to the Department of Commerce.

Show Suggested Answer

Suggested Answer: B

by Vilma at May 08, 2022, 02:12 AM

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Burma

4 months ago

B sounds right, they can't just confirm without reporting!

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Diego

4 months ago

If they agreed to confirm it, they might have to.

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Fannie

4 months ago

Wait, can they really just ignore the boycott provisions?

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Stevie

4 months ago

I think they should report it to the Department of Commerce too.

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Tiffiny

5 months ago

First National Bank has to follow the rules about boycotts.

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Aaron

5 months ago

Okay, I've got this. Planning and controlling is not a technique for gathering information, so that must be the answer. I'm confident I can get this right.

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Kasandra

5 months ago

I'm a bit confused on this one. The question mentions something about the number of iterations, but I'm not sure how that relates to finding a good clustering. I'll have to think this through more carefully.

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Cornell

5 months ago

Ugh, I'm struggling with this question. There are a lot of GRC-related terms and I'm not totally clear on the differences between them. I'll have to make an educated guess and hope for the best.

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Blondell

5 months ago

This seems like a tricky one. I'll need to think through the dependencies and infrastructure costs carefully.

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Jeanice

5 months ago

I'm a little confused by the wording here. Does "dedicated cloud storage device" mean each hypervisor has its own separate storage, or is it referring to a shared storage solution? I'll have to re-read the passage more closely.

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