CUCO Certification Exam 2 Practice Test 1

• $650,000

• $750,000

• $800,000

• $850,000

Sarah establishes a revocable trust account naming her three children as equal beneficiaries. The account balance is $900,000. How much of this account is insured by NCUA?

• $250,000

• $500,000

• $750,000

• $900,000

• $250,000 total

• $500,000 permanently

Which of the following accounts is NOT eligible for share insurance coverage?

• Individual Retirement Account (IRA)

• UTMA custodial account

Tom and Lisa Johnson establish a revocable trust account naming each other as the sole beneficiaries. The account has $400,000. How is this account treated for share insurance purposes?

• As a joint account with $500,000 coverage

• As an individual account with $250,000 coverage

• As two separate accounts with $250,000 each

Which statement about NCUA's official sign requirements is CORRECT?

• The official sign must be displayed only at the main office

• The sign must appear on all website pages, including those for ineligible products

• The sign must be displayed at each teller station and on the credit union's main webpage

• The sign is optional for federal credit unions but required for state-chartered credit unions

Under Truth in Savings, which term may a federal credit union use to describe payments to members on their share accounts?

• Interest

• Dividends

• Returns

• Profits

XYZ Credit Union wants to advertise a share certificate account. The advertisement states an APY of 3.50%. Which of the following disclosures is NOT required in the advertisement?

• Statement that the rate may change after account opening (if variable)

• The term required for the advertised APY

• Minimum balance requirements

• The credit union's routing number

A credit union includes an advertisement for a new credit card on its monthly account statements. The credit union must include the NCUA official advertising statement on the account statement because:

• All account statements must include the NCUA statement

• The statement includes an advertisement, triggering the requirement

• This is required only for new members

• The NCUA statement is never required on periodic statements

When must a credit union send a change-in-terms notice to members?

• Within 10 days after implementing any change

• 30 days before a change that reduces the APY or adversely affects the member

• Immediately when any fee is changed

• Only when opening a new type of account