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American Bankers Association CRCM Exam - Topic 6 Question 118 Discussion

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?
D) All except for Products Incorporated
A) All except for Nationwide Foods, Inc.
B) All except for National Paper Products
C) All except for Century Enterprises

American Bankers Association CRCM Exam - Topic 6 Question 118 Discussion

Actual exam question for American Bankers Association's CRCM exam
Question #: 118
Topic #: 6
[All CRCM Questions]

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?

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Suggested Answer: D

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

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Quentin
4 months ago
C makes sense to me. Century Enterprises doesn't fit the criteria.
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Ryan
5 months ago
I disagree, I lean towards A. Nationwide Foods is too big.
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Idella
5 months ago
Surprised that being a long-time customer doesn’t make Century exempt!
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Mee
5 months ago
Totally agree, Century Enterprises doesn’t seem to qualify as exempt.
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Jimmie
5 months ago
Wait, how can Products Incorporated be exempt? They’re just a regional company.
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Artie
5 months ago
I think National Paper Products should be exempt too, being a subsidiary.
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Gearldine
5 months ago
Nationwide Foods is definitely exempt since it's publicly traded.
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Roselle
6 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
6 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
6 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
6 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
6 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
6 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
7 months ago
I think the correct answer is B) All except for National Paper Products.
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Pansy
7 months ago
I think it's B. National Paper Products should be exempt.
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Aliza
7 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
7 months ago
D seems right. Products Incorporated is too small.
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Theron
8 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
8 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
8 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
8 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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Carmela
8 months ago
Okay, I think I've got this. The key is to identify which customers meet the criteria for being an "exempt person" based on the information provided.
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Carlene
9 months ago
Hmm, this seems like a tricky one. I'll need to carefully review the details about each customer to determine which ones qualify as exempt persons.
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Precious
3 months ago
Products Incorporated seems like the tricky one.
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Eden
3 months ago
I’m leaning towards Century Enterprises being exempt too.
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Lizette
4 months ago
But what about National Paper Products?
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Tuyet
4 months ago
I think Nationwide Foods is definitely exempt.
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Lindsey
7 months ago
I’ll have to double-check the criteria for each one.
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