Deck 13: Regulatory Compliance for Financial Institutions

Question 1

Which of the following agencies regulates financial institutions not covered by other agencies?

A) Federal Trade Commission (FTC)
B) Commodity Futures Trading Commission (CFTC)
C) National Credit Union Administration (NCUA)
D) Federal Deposit Insurance Corporation (FDIC)

Answer 1

Federal Trade Commission (FTC)

Question 2

Which of the following agencies regulates state-chartered banks?

A) Federal Trade Commission (FTC)
B) Commodity Futures Trading Commission (CFTC)
C) National Credit Union Administration (NCUA)
D) Federal Deposit Insurance Corporation (FDIC)

Answer 2

Federal Deposit Insurance Corporation (FDIC)

Question 3

The Federal Reserve Board is responsible for regulating which of the following?

A) Bank holding companies and member banks of the Federal Reserve System
B) National banks, federal saving associations, and federal branches of foreign banks
C) Federally charted credit unions
D) State-chartered banks

Answer 3

Bank holding companies and member banks of the Federal Reserve System

Question 4

Which of the following statements best describes operational risk?

A) The risk arising from adverse business decisions
B) The risk arising from negative public opinion
C) The risk arising from problems with service or product delivery
D) The risk of loss resulting from inadequate or failed internal processes, people, or systems

Question 5

Which of the following statements best describes reputational risk?

A) The risk arising from adverse business decisions
B) The risk arising from negative public opinion
C) The risk arising from problems with service or product delivery
D) The risk of loss resulting from inadequate or failed internal processes, people, or systems

Question 6

Which of the following best describes an assessment?

A) Evidenced-based examination that compares current practices against a specific internal or external criteria
B) A focused privileged inspection to determine condition, locate weakness or vulnerabilities, and identity corrective actions
C) Testing controls by performing vulnerability assessment tests that simulate real attacks
D) Configuring the System and Security logs on each system to record and audit activities

Question 7

Which of the following testing methodologies measures how well controls and safeguards work by subjecting the system to an attack?

A) Assessment
B) Audit
C) Assurance
D) All of the above

Question 8

Which of the following is an evidence-based examination that compares current practices against internal or external criteria?

A) Appraisal
B) Audit
C) Assurance
D) Assessment

Question 9

What is the FTC implementation of the GBLA?

A) Interagency guidelines
B) Guidelines for Safeguarding Member Information
C) Safeguards Act
D) Banks Holding Company Act

Question 10

What is the term used to describe names, addresses, and phone numbers when linked to bank and credit card account information?

A) Private information
B) Nonpublic personal information
C) Nonpublic private information
D) Personal information

Question 11

Which of the following threats must financial institutions address?

A) Denial of service
B) Unauthorized access
C) Malware
D) All of the above

Question 12

Which of the following is not considered NPPI?

A) Social Security number
B) Customer account number
C) Credit card account number
D) Credit history

Question 13

According to the Interagency Guidelines, who must approve the bank's written information security program?

A) Chief Executive Officer
B) Chief Security Officer
C) Board of Directors
D) Information owner

Question 14

Which of the following, also known as social engineering, is a methodology by which an individual impersonates someone else to extract sensitive information from them?

A) Pretexting
B) System infiltration
C) Corporate identity theft
D) Denial of service

Question 15

Which of the following gives federal financial regulators statutory authority to regulate and examine the services a technology service provider (TSP) performs for FDIC-insured financial institutions?

A) FDIC
B) FFIEC
C) NIST
D) BSCA

Question 16

Which of the following statements best describes strategic risk?

A) The risk arising from adverse business decisions
B) The risk arising from negative public opinion
C) The risk arising from problems with service or product delivery
D) The risk of loss resulting from inadequate or failed internal processes, people, or systems

Question 17

Which of the following is used by regulatory agencies to uniformly assess financial institutions based on a rating scale of 1 to 5, with 1 representing the best rating and least degree of concern, and 5 representing the worst rating and highest degree of concern?

A) NY DFS
B) URSIT
C) BSCA
D) GLBA

Question 18

Which of the following is an interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions?

A) NCUA
B) FRB
C) FDIC
D) FFIEC

Question 19

Which key part of the NY DFS Cybersecurity Regulation covers training and monitoring?

A) Section 500.06
B) Section 500.12
C) Section 500.14
D) Section 500.17

Question 20

Which of the following refers to the risk arising from problems with service or product delivery?

A) Operational risk
B) Transactional risk
C) Strategic risk
D) Compliance risk