10 exam-style questions with answers and explanations, straight from our 1,055-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free CCO questions are organized by exam domain, so you can see how each part of the Certified Cannabis Compliance Officer blueprint is tested. Reveal the answer and explanation under each question.
An NCUA examiner determines that a credit union's lending practices are unsafe and unsound. The examiner recommends an enforcement action. Which action would NCUA take FIRST in the escalation process?
Correct answer: D - An informal action such as a DOR or contact letter
A credit union wants to originate a member business loan of $1.5 million. Its net worth is $800,000 and total assets are $12 million. The MBL aggregate cap is the lesser of 1.75 × $800,000 = $1,400,000 or 12.25% × $12,000,000 = $1,470,000. Can the credit union originate this loan?
Correct answer: B - No, because the loan exceeds the lesser of the two caps ($1,400,000)
A credit union charges a $35 overdraft fee on a one-time debit card transaction. The member never opted in to overdraft services. This is:
Correct answer: B - A violation of Regulation E which requires opt-in consent for ATM and debit overdraft fees
A member's debit card is stolen on January 5. The member discovers the theft on January 10 but does not report it to the credit union until January 25. Unauthorized transactions totaling $3,000 occurred between January 5 and January 25. The member's maximum liability is:
Correct answer: B - $500 because the member reported more than 2 business days after learning of the theft
A credit union's minimum credit score policy results in a significantly higher denial rate for a particular racial group, even though the policy is applied uniformly to all applicants. This is an example of:
Correct answer: B - Disparate impact
Under the Military Lending Act, disclosures to covered borrowers must be provided:
Correct answer: C - Both orally and in writing
A member closes on a home equity line of credit (HELOC) on Wednesday. Assuming all disclosures were properly provided at closing, when does the rescission period expire?
Correct answer: C - Saturday at midnight
A member asks the credit union whether a Suspicious Activity Report has been filed on their account. The credit union must:
Correct answer: B - Refuse to disclose whether a SAR has been filed under any circumstances
A credit union detects activity suspected of being related to terrorist financing. The dollar amount involved is $500. Should a SAR be filed?
Correct answer: B - Yes, because there is no minimum dollar threshold for suspected terrorist financing
A member visits three different branches on the same day, making cash deposits of $3,500 at each location. If the credit union discovers this pattern, what should occur?
Correct answer: B - A CTR should be filed for the aggregate $10,500, and a SAR should be considered
The CCO exam also covers these domains. Drill them in the full free practice test:
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