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Sec5-P21

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Question 1 of 10

1. Question
Which of the following is an example of suspicious bank activity?
- A. Conducting transactions with no logical economic purpose
- B. Depositing checks from long-term business clients
- C. Making small cash withdrawals for daily operations
- D. Paying rent with a check
Correct

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Question 2 of 10

2. Question
Which scenario may indicate suspicious activity related to money laundering?
- A. A borrower making a down payment using a cashier's check
- B. Large cash payments from sources not normally associated with cash transactions
- C. A contractor receiving payment for labor
- D. A seller receiving gift funds
Correct

Incorrect
Question 3 of 10

3. Question
Which pattern is a red flag for suspicious financial activity?
- A. Using sequentially numbered money orders
- B. Using cashier’s checks for settlement
- C. Using wire transfers for closing
- D. Using business checks for payroll
Correct

Incorrect
Question 4 of 10

4. Question
What should financial institutions implement regarding suspicious activity?
- A. A process for collecting, evaluating, and documenting potential suspicious activity
- B. A process to report all mortgage applications to the CFPB
- C. A database of customer marketing preferences
- D. A tracking system for lock-in agreements
Correct

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Question 5 of 10

5. Question
Which statement is TRUE about Suspicious Activity Reports (SARs)?
- A. SARs and information revealing their existence are confidential
- B. SARs must be disclosed to the borrower upon request
- C. SARs may be shared with real estate agents
- D. SARs must be included in the Loan Estimate
Correct

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Question 6 of 10

6. Question
Which advertising practice is considered misleading?
- A. Stating a mortgage rate is “fixed” when it will adjust
- B. Disclosing APR on the Loan Estimate
- C. Advertising “rates subject to change”
- D. Noting that discount points may be purchased
Correct

Incorrect
Question 7 of 10

7. Question
Which statement would be considered misleading under advertising rules?
- A. Stating “government loan program” when it is not FHA/VA/Rural Housing
- B. Advertising USDA loans require property eligibility
- C. Promoting VA loans to qualified veterans
- D. Advertising FHA loans to first-time homebuyers
Correct

Incorrect
Question 8 of 10

8. Question
Which of the following is an example of misleading advertising?
- A. “Wipe Out Personal Debts!”
- B. “Interest rates may vary based on credit.”
- C. “Ask about our FHA options.”
- D. “Down-payment assistance may be available.”
Correct

Incorrect
Question 9 of 10

9. Question
Which advertising statement is considered misleading?
- A. “Our loan officers are trained mortgage counselors.”
- B. “Interest rates can change daily.”
- C. “Closing costs vary by lender.”
- D. “Prequalification is not a final approval.”
Correct

Incorrect
Question 10 of 10

10. Question
What best describes a bait-and-switch mortgage advertisement?
- A. Advertising a low interest rate to lure applicants, then revealing it is unavailable and offering a higher-rate loan instead
- B. Offering multiple loan programs to compare
- C. Disclosing a higher APR due to lender fees
- D. Advertising only fixed-rate loans
Correct

Incorrect

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