American Bankers Association CRCM Exam - Topic 6 Question 118 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 118
Topic #: 6

First National Bank is attempting to determine which of the following customers would qualify as exempt persons:

* Nationwide Foods, Inc., is a national company with stock listed on the New York Stock Exchange

* National Paper Products, is a wholly owned subsidiary of Nationwide Foods, Inc.

* Products Incorporated, a depositor for three months, is a regional company whose stock is designated a NASDAQ Capital Markets Company and that sells and leases large boats

* Century Enterprises, a local company owning several local restaurants, is a long-time bank customer and frequently makes deposits in excess of $10,000. All of Century's stock is owned by a local family.Which of these customers would qualify as an exempt person?

AAll except for Nationwide Foods, Inc.

BAll except for National Paper Products

CAll except for Century Enterprises

DAll except for Products Incorporated

Show Suggested Answer

Suggested Answer: D

by Hector at Oct 31, 2025, 06:00 PM

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Quentin

2 months ago

C makes sense to me. Century Enterprises doesn't fit the criteria.

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Ryan

3 months ago

I disagree, I lean towards A. Nationwide Foods is too big.

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Idella

3 months ago

Surprised that being a long-time customer doesn’t make Century exempt!

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Mee

3 months ago

Totally agree, Century Enterprises doesn’t seem to qualify as exempt.

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Jimmie

4 months ago

Wait, how can Products Incorporated be exempt? They’re just a regional company.

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Artie

4 months ago

I think National Paper Products should be exempt too, being a subsidiary.

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Gearldine

4 months ago

Nationwide Foods is definitely exempt since it's publicly traded.

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Roselle

4 months ago

Hmm, I wonder if any of these customers have a secret boat-leasing side business. That would be a plot twist!

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Ming

4 months ago

Century Enterprises is a long-time bank customer making frequent large deposits, so it should be considered an exempt person.

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Tori

4 months ago

Products Incorporated is a regional company with NASDAQ-listed stock, so it should also qualify as an exempt person.

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Lindsey

5 months ago

Nationwide Foods, Inc. is a national company with stock listed on the NYSE, so it should qualify as an exempt person.

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Colton

5 months ago

I think Products Incorporated might be tricky because it's a regional company, but I can't recall if NASDAQ Capital Markets counts as exempt.

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Mauricio

5 months ago

I practiced a similar question where local businesses were often not exempt, so I'm leaning towards Century Enterprises being the one that doesn't qualify.

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Amie

5 months ago

I think the correct answer is B) All except for National Paper Products.

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Pansy

5 months ago

I think it's B. National Paper Products should be exempt.

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Aliza

5 months ago

I'm not entirely sure about National Paper Products since it's a subsidiary. I feel like subsidiaries might not always be exempt.

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Gary

6 months ago

D seems right. Products Incorporated is too small.

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Theron

6 months ago

I remember that exempt persons usually include companies listed on major exchanges, so I think Nationwide Foods qualifies.

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Ines

6 months ago

I feel pretty confident about this one. I just need to carefully analyze each customer's characteristics to determine which ones meet the exemption criteria.

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Tonette

7 months ago

This question is really testing our understanding of the regulations around exempt persons. I'm going to make sure I fully understand the requirements before selecting my answer.

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Coletta

7 months ago

I'm a little confused about the NASDAQ Capital Markets Company designation for Products Incorporated. Does that mean they qualify as an exempt person or not?

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