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WorksheetsCUCO Certification Exam 2 Practice Test 1
Total questions: 56
Worksheet time: 28mins
John Smith has a single ownership account with 200,000,ajointaccountwithhiswifeMarywith 600,000, and an IRA account with $250,000 at ABC Credit Union. How much total share insurance coverage does John have?
$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
A credit union merger was completed on March 1, 2025. Member Bob had 300,000inaccountsatCreditUnionAand 200,000 in accounts at Credit Union B before the merger. Both credit unions merged into Credit Union A. What is Bob's share insurance coverage immediately after the merger?
$250,000 total
500,000forsixmonths,then 250,000
$500,000 permanently
300,000fromCUAand 200,000 from CU B separately
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 revocable trust with 500,000coverage( 250,000 per beneficiary)
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
Which of the following fees would be considered a maintenance or activity fee that must be disclosed under Truth in Savings?
Wire transfer fee charged to members and non-members
Stop payment fee
Monthly service fee for not maintaining a minimum balance
Traveler's check fee
A credit union advertises "Free Checking!" but charges a 5monthlyfeeifthebalancefallsbelow 500. This advertisement is:
Permissible if the fee is disclosed in small print
Permissible because the account can be free if members maintain the minimum balance
Not permissible because a maintenance fee may be imposed
Permissible as long as the credit union waives the fee for the first six months
For accounts where electronic fund transfers can occur, how often must periodic statements be sent if an EFT has NOT occurred during the month?
Monthly
Quarterly
A member requests information about opening a share draft account. When must the credit union provide account opening disclosures if the member is present in the branch?
Within 10 business days after opening the account
Before the account is opened or a service is provided, whichever is earlier
Within 30 days of the member's request
No later than with the first periodic statement
What is the acceptable rounding rule for the Annual Percentage Yield (APY) under Truth in Savings?
Round to the nearest whole number
Round to the nearest 0.01% (two decimal places)
Round to the nearest 0.001% (three decimal places)
Rounding is not permitted; exact figures must be used
Which of the following is an acceptable synonym for "share certificate" under Truth in Savings?
Certificate of Deposit (CD)
Time deposit
Certificate account
Deposit certificate
A credit union advertises an overdraft protection program. Which disclosure is required in the advertisement?
The credit union's net worth ratio
Categories of transactions for which a fee may be imposed for paying an overdraft
Names of all employees authorized to approve overdrafts
The member's credit score requirements
Which of the following transactions is covered by Regulation E?
Wire transfer pursuant to UCC 4A
Check converted to an image and processed electronically
ACH credit transfer to a member's account
Automatic transfer from a member's savings to pay a loan at the same credit union
A member reports that her debit card was stolen on Monday. She notifies the credit union on Wednesday (two business days later). Unauthorized transactions totaling $300 occurred before she reported the theft. What is the member's maximum liability?
$0
$50
$300
$500
A member notifies the credit union of an unauthorized EFT appearing on her periodic statement 75 days after the statement was mailed. The credit union must:
Complete an investigation within 10 business days
Investigate only if the member provides written confirmation
Hold the member fully liable for the unauthorized transfer
Provisionally credit the account within 10 business days
When must a credit union send a change-in-terms notice under Regulation E?
10 days before the effective date of any change
21 days before the effective date of a change that increases fees or liability
30 days after implementing the change
Change-in-terms notices are not required under Regulation E
Under Regulation E's error resolution procedures, which of the following is NOT considered an error?
An unauthorized electronic fund transfer
A computational error by the credit union relating to an EFT
A member's request to determine whether an error exists
For an EFT error involving a point-of-sale debit card transaction on a new account (opened less than 30 days ago), how long does the credit union have to complete its investigation?
10 business days
20 business days
45 calendar days
90 calendar days
A credit union wants to charge members overdraft fees for ATM withdrawals that overdraw their accounts. What must the credit union do first?
Provide notice in the periodic statement
Obtain the member's opt-in consent
File notice with the NCUA
Nothing; overdraft fees can be charged automatically
Which statement about Regulation E's opt-in requirements for overdraft services is CORRECT?
A credit union must obtain opt-in for all overdraft services, including checks and ACH
The opt-in requirement applies only to ATM and one-time debit card transactions
Members who do not opt-in cannot have checking accounts
Opt-in consent must be renewed annually
A credit union may extend the error resolution investigation period to 90 calendar days for:
All errors on new accounts
Point-of-sale debit card transactions initiated outside the United States
All ACH transactions
Errors reported more than 30 days after the statement date
Under Regulation E, a credit union is prohibited from:
Offering lower interest rates to members who set up automatic loan payments
Conditioning the extension of credit on repayment by preauthorized electronic fund transfer
Charging a fee for providing periodic statements
Charging a fee for ATM withdrawals
Before a credit union can provide required disclosures electronically, it must obtain a member's consent. Which statement about this consent requirement is CORRECT?
Consent can be implied from the member's use of online banking
The member must affirmatively consent or confirm consent electronically
Verbal consent obtained over the phone is sufficient
Consent is not required if the member has an email address on file
Which of the following must be included in the E-SIGN Act consent disclosures?
The member's credit score
Hardware and software requirements for accessing electronic records
The credit union's net worth ratio
A list of all members who have consented to electronic delivery
After obtaining proper E-SIGN consent, a credit union changes its hardware and software requirements in a way that creates a material risk members cannot access electronic disclosures. What must the credit union do?
Nothing; the original consent remains valid
Send a notice of the change via postal mail
Repeat the consent process with affected members
Discontinue electronic delivery to all members
Under the E-SIGN Act, which type of record or document is specifically EXCLUDED from coverage?
Account opening disclosures
Periodic statements
Wills and trusts
Privacy notices
A member opens an account online and clicks a button on the credit union's website to acknowledge receipt of the E-SIGN disclosures. This process:
Is sufficient because the member consented electronically
Is insufficient because there's no proof the member can access future electronic disclosures
Meets E-SIGN requirements if it reasonably demonstrates the member can access electronic records
Requires follow-up with a paper confirmation
Which statement about electronic record retention under the E-SIGN Act is CORRECT?
Electronic records can never substitute for paper records
Records must be retained in paper format for at least two years
Electronic records may be retained if they accurately reflect the information and remain accessible
Only records created electronically can be retained electronically
A member deposits a $3,000 local check in person at a teller window on Tuesday. Assuming no exceptions apply, when must the credit union make funds available for withdrawal?
$225 on Wednesday, remainder on Thursday
225onWednesday, 2,775 on Thursday
Entire amount on Wednesday
Entire amount on Thursday
What is the latest time a credit union may establish as a cut-off hour for deposits made in person to an employee at a branch?
12:00 PM
2:00 PM
5:00 PM
6:00 PM
A member deposits a $400 U.S. Treasury check made payable to the member in person at a teller window. When must these funds be made available?
Same day
Next business day after the day of deposit
Two business days after the day of deposit
Three business days after the day of deposit
Which of the following is NOT a valid exception to Regulation CC's funds availability schedules?
New account (less than 30 days old)
Large deposit (over $5,525)
Reasonable cause to doubt collectibility
Member has had an account for exactly 35 days
For new accounts, what is the maximum amount that must be made available the next business day for U.S. Treasury checks, cashier's checks, and certified checks deposited in person?
$225
$450
$5,525
The full amount
A credit union invokes the large deposit exception for a $10,000 local check. How much must be made available for withdrawal by the second business day after deposit?
$225
$450
$5,525
$10,000
Funds deposited into a nonproprietary ATM must be made available no later than:
Next business day
Second business day
Third business day
An account is considered "repeatedly overdrawn" under Regulation CC if:
The account is overdrawn once in six months
The account is negative on six or more banking days in the preceding six months
The account is overdrawn by any amount
The member requests overdraft protection
Under Regulation P (GLBA Privacy Rule), which of the following is considered "nonpublic personal information"?
Information from public sources like phone directories
A member's account balance
The credit union's address
Publicly available government records about the member
When must a credit union provide an initial privacy notice to a new member?
Within 30 days after the relationship is established
No later than when the customer relationship is established
Within 10 business days after the first transaction
With the first periodic statement
Under which circumstance is a credit union NOT required to send an annual privacy notice?
The credit union shares information with affiliates
The credit union does not share NPI in a manner triggering opt-out rights and has not changed its policies
The credit union has fewer than 1,000 members
The member has opted out of information sharing
Which of the following is considered an "affiliate" under Regulation P?
A company that is owned at least 25% by the credit union
A CUSO owned 67% by the credit union
Any third-party service provider
The credit union's legal counsel
A credit union may share a member's nonpublic personal information with a nonaffiliated third-party service provider without providing an opt-out notice if:
The third party is located in the same state
The credit union has a contract ensuring confidentiality and the sharing is disclosed in the privacy notice
The member has an account for more than one year
The information is shared only once per year
Under the FCRA Affiliate Marketing Rule, what is "eligibility information"?
Information about whether a member is eligible for membership
Information that would be a consumer report if certain exclusions did not apply
Publicly available information about employment
Information about the member's address
A credit union and its CUSO want to use eligibility information from member accounts to market CUSO products. What must the credit union do?
Obtain member consent for each marketing communication
Provide opt-out notice and reasonable opportunity to opt out
Notify the NCUA of the marketing arrangement
Nothing; affiliates can freely share eligibility information
How long is the minimum effective period for an opt-out under the Affiliate Marketing Rule?
1 year
2 years
3 years
4 years
5 years
Which of the following email practices would violate the CAN-SPAM Act?
Sending a monthly newsletter to members who requested it
Using a false "From" email address in marketing emails
Including the credit union's physical address in marketing emails
Providing an opt-out mechanism in commercial emails
Under the CAN-SPAM Act, how long does a credit union have to honor a member's opt-out request from commercial emails?
3 business days
5 business days
10 business days
30 calendar days
The Right to Financial Privacy Act (RFPA) applies to:
State government requests for member information
Federal government requests for member information
All third-party requests for member information
Credit union examinations by state regulators
Before releasing member financial records to a federal government authority under the RFPA, a credit union should receive:
A verbal request from the agent
An email from a .gov address
A certificate of compliance
Permission from the member only
Under the RFPA, which form of government authorization is acceptable for obtaining member financial records?
Verbal request from a government agent
Administrative subpoena meeting RFPA requirements
Telephone call from a federal agency
Request submitted through social media
A credit union wants to send a revised privacy notice to members because it will begin sharing information with a new category of nonaffiliated third parties. The revised notice must be provided:
Before the credit union begins the new information sharing
Within 30 days after beginning the new sharing
With the next annual privacy notice
Only if members request it
Under the Affiliate Marketing Rule, what is the minimum opt-out period?
One year
Three years
Five years
Ten years
