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American Bankers Association CRCM Exam - Topic 7 Question 79 Discussion

For which of the following business activities must a bank holding company obtain prior approval of the Federal Reserve Board?
B) Serving as a safe deposit company
A) Operating an auto club service
C) Operating as a management consulting firm for financial institutions
D) Selling installment loan data processing

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?

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Suggested Answer: B

by Gracia at Dec 27, 2023, 12:58 PM

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Xuan
10 months ago
I thought selling data processing was a free-for-all!
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Rosina
10 months ago
Safe deposit companies definitely require it.
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Joana
10 months ago
Wait, do they really need approval for auto clubs?
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Janae
11 months ago
Totally agree, it's a big deal!
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Freeman
11 months ago
Banks need approval for management consulting.
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Vallie
11 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
11 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
11 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
12 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
12 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
12 months ago
I remember learning about this in class. I'm pretty confident I know the right answer.
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Adela
12 months ago
Hmm, I'm not too sure about this one. I'll need to think it through carefully.
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Kerry
12 months ago
This question seems straightforward, I think I can figure this out.
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Fletcher
12 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
12 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
12 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
1 year 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
1 year 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
1 year ago
C) Operating as a management consulting firm for financial institutions
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King
1 year ago
B) Serving as a safe deposit company
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Mable
1 year ago
A) Operating an auto club service
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Gussie
1 year ago
Wait, they can't just open up a car wash on the side? Talk about diversifying your portfolio!
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Cassie
1 year 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
1 year ago
C) Operating as a management consulting firm for financial institutions
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Agustin
1 year ago
B) Serving as a safe deposit company
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Valentin
1 year ago
D) Selling installment loan data processing
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Jade
1 year ago
C) Operating as a management consulting firm for financial institutions
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Tori
1 year ago
B) Serving as a safe deposit company
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Chauncey
1 year ago
A) Operating an auto club service
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Thomasena
1 year ago
A) Operating an auto club service
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Goldie
1 year 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
1 year 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
1 year ago
Selling installment loan data processing might require approval from the Federal Reserve Board.
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Refugia
1 year ago
Operating as a management consulting firm for financial institutions could be beneficial for a bank holding company.
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Latrice
1 year ago
C) Operating as a management consulting firm for financial institutions
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Arlean
1 year ago
I think serving as a safe deposit company would make more sense for a bank holding company.
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Lashaunda
1 year ago
B) Serving as a safe deposit company
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Geraldo
1 year ago
C) Operating as a management consulting firm for financial institutions
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Stacey
1 year ago
B) Serving as a safe deposit company
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Kris
1 year ago
I agree, operating an auto club service seems unrelated to banking.
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Evan
1 year 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
1 year ago
I agree with Joye, because holding deposits is a core banking activity that requires regulatory approval.
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Joye
1 year ago
I think the answer is B) Serving as a safe deposit company.
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Justine
1 year 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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Hyman
1 year ago
Definitely, it's important for banks to get approval for activities outside of traditional banking.
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Tegan
1 year ago
I agree, it makes sense that the Federal Reserve Board would want to oversee that.
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Shay
1 year ago
Yeah, banks usually need approval for services like that.
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Jillian
1 year ago
I think B) Serving as a safe deposit company is correct.
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Tanesha
1 year ago
I'm not sure, but I think it's D) Selling installment loan data processing because it involves sensitive financial information.
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Deja
1 year ago
I agree with Lanie, because it involves holding customer assets.
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Lanie
1 year ago
I think it's B) Serving as a safe deposit company.
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