Credit Union Management School (CMS) Year 3 Practice Test

These questions are part of the practice quiz. Start practicing

• Which primary area focuses on guiding and directing the team's performance?
• Which factor determines how long member records must be retained?
• Burnout is best described as:
• Which term refers to the actions the credit union takes to mitigate or manage the risk exposure?
• A SWOT analysis of team performance is used to reflect on which elements?
• Why separate duties across transactions, authorization, and recording?
• What is the difference between descriptive and predictive analytics?
• Under what scenario would a contingency funding plan be activated?
• Which risk areas does the Asset-Liability Management Committee primarily monitor?
• What is the role of a control environment in internal controls?
• Which description best matches the storming stage?
• What is a hallmark of a good advocate?
• Which description best matches the forming stage?
• Which statement accurately describes barriers to homeownership for communities of color?
• What are the goals for economic activity?
• What are the most important components of economic activity?
• Why is capital planning important beyond meeting regulatory minimums?
• Which term describes someone who does not encourage you or support your growth and who tests you to be the best version of yourself?
• Which statement best describes data quality management in a credit union?
• Which statement best defines 'tone at the top' in internal controls?
• Enhanced due diligence (EDD) is applied to higher-risk customers; which statement is true?
• Which conflict management style involves giving concessions to reach a quick resolution?
• What is the primary focus of the Asset and Liability Management Committee (ALCO) in a credit union?
• On a cash flow statement, which category is used to classify cash flows arising from the core operations of the credit union?
• Why is transparent fee disclosure important for a credit union?
• Which of the following is a common mistake that harms team performance?
• Which term describes the discriminatory practice that denies services in certain areas based on race or ethnicity?
• If consumption accounts for 70% of economic activity, what is the accurate interpretation?
• Which statement best captures the goal of ERM?
• Name two key profitability metrics for a credit union and what they indicate.
• The acronym MAP stands for which phrase?
• What is the purpose of a data privacy program?
• What describes the inherent risk profile?
• What is the primary purpose of an internal audit in a credit union?
• What are the components of information security organizational structure?
• Likelihood is defined as:
• Why is ethical culture critical for credit unions?
• What is the basic difference between gap analysis and duration analysis?
• Which trap is defined as favoring closeness to existing solutions rather than looking for new solutions?
• Which statement best describes the output of the critical path method?
• What best defines an entrepreneurial mindset?
• Demographic refers to which of the following?
• What is the primary purpose of a formal change management process for core banking systems?
• Shared beliefs, norms, and expectations describe which concept?
• Which term acts as the compass, or litmus test, for making business decisions?
• Which statement best defines allies in the context of personal growth?
• Which Covey zone marks the moment when you start to see the benefits of the change?
• Based on HMDA data, which statement is accurate about mortgage denial rates?
• Which statement best describes the primary purpose of financial knowledge (FQ) in a business context?
• Which term describes delaying actions to avoid conflict?
• How should a credit union align HR strategy with strategy?
• What is the purpose of the cash flow statement in credit union financial reporting?
• In DISC, which style tends to follow established protocols and procedures?
• Which term describes finding middle ground and sharing?
• Which term serves as the compass for making business decisions and acts as the differentiator?
• In DISC, which style is associated with interacting and sharing opinions with others?
• What is credit risk in investments and how can it be mitigated?
• What is the purpose of Call Reports or NCUA financial reporting?
• Which statement correctly differentiates coaching from consulting?
• Which components define burnout?
• Which statement correctly defines risk tolerance?
• Which statement differentiates risk appetite from risk tolerance?
• Which statement best defines a business model?
• What is the key difference between KYC and CDD in BSA/AML programs?
• What is journey mapping and its value for credit unions?
• What best describes cybersecurity and cyber response?
• Who makes the decision to hire a new Chief Executive Officer at a credit union?
• Which option is also a primary area of team enablement factors?
• What is the goal of ERM?
• Which statistic reflects HMDA data about mortgage denial rates?
• What is the efficiency ratio in credit union metrics?
• Which statement distinguishes the purpose of regulatory reporting like Call Reports?
• How is disruption defined in Covey's framework?
• What principle ensures users are given the minimum access necessary to perform their job?
• What defines the cybersecurity maturity level?
• Day One Energy is best described as:
• What does status quo mean in Covey's framework?
• What is a disaster recovery plan?
• What is the purpose of vendor risk management?
• The concept 'heroes praise well' emphasizes which elements?
• Which best describes self awareness as an emotional intelligence skill?
• Which conflict management style involves avoiding the conflict?
• What is the primary purpose of a board-approved strategic plan in a credit union?
• Which statement describes the ERM policy's role in risk management reporting?
• Which term best describes a marketing channel based on personal recommendations from customers?
• Which two dimensions are typically rated in a risk assessment matrix?
• In a liquidity stress scenario with a large withdrawal spike, what is a primary action for ALCO?
• Why are audit trails important in core banking change management?
• Net Promoter Score is best described as
• Which is a key control for a secure online banking system?
• According to Gallup, what percentage of managers are engaged in the workplace?
• True or false: The government influences economic activity through fiscal policy (taxes and spending) and monetary policy (interest rates).
• Inherent risk is defined as exposure before responses and is the product of which two factors?
• What is fintech risk in credit unions?
• Which concept describes the process of using assumptions or biases formed from past experiences to judge the intentions of others?
• Which statement best describes internal controls?
• Which statement is NOT one of the three golden rules for mitigating workplace conflict?
• In segmentation terminology, what does the term 'demographic' refer to?
• Which term is your reputation?
• What is the difference between accrual basis and cash basis accounting?
• Which statement best describes burnout?
• Which term best describes self-awareness and self-management?
• What is the purpose of recognizing the internal traps in innovation?
• What is the difference between underwriting and approval in lending process?
• CU Advocacy focuses on which outcome?
• What is the significance of access policy and controls?
• Which statement demonstrates the racial gap in homeownership rates?
• Which expression defines residual risk?
• A good advocate is described as which of the following?
• What are escalation strategies?
• Which sequence correctly lists the five stages of team development in order?
• What is the maturity trap?
• Which description best matches the adjourning stage?
• According to Fortune 100 CEOs career paths, what is the most common function of the business that CEOs progress through?
• How should a credit union price a new unsecured personal loan in a competitive market?
• In segmentation, which phrase best describes psychographic focus?
• What is a contingency funding plan (CFP) and when is it used?
• Which analytics category is used to determine the best course of action to optimize future results?
• Which statement about emotional intelligence is most accurate?
• Which of the following is a conflict management style?
• Psychographic segmentation is described by which statement?
• Which statement describes ROAA (return on average assets)?
• Which set describes the information security organizational structure?
• What is described as the most valuable thing you can give someone?
• What is the purpose of the NCUA's Supervisory Committee in a credit union?
• How should a credit union screen members for sanctions?
• Which area does the NCUA Supervisory Committee oversee?
• Which statement correctly describes coaching?
• Which statement correctly describes consulting?
• When pricing unsecured personal loans, which requirement must be considered?
• Which description best defines allies?
• Which statement best describes homeownership's role in generational wealth?
• What best defines generational wealth?
• Which description best defines thieves?
• How does the government influence economic activity?
• Psychographic segmentation focuses on which?
• How does a board ensure effective oversight of risk management?
• Which term describes exposure after considering risk responses?
• What does the coaching approach 'If we see it, say it' emphasize?
• Which term corresponds to delays; neglects?
• Which elements are included in the 'heroes listen' approach?
• Which option correctly lists Covey's 4 Zones of Change in order?
• What is described as the most valuable thing you can give someone in a professional setting?
• What is the critical path method and its use in project planning?
• What does CAMEL stand for in the rating system used for credit unions?
• If HR strategy is not aligned with organizational strategy, what is a likely outcome?
• Which statement best describes the board's role in governance and reporting to the board?
• Which description best matches the norming stage?
• Net interest margin (NIM) measures which of the following?
• Which conflict management style prioritizes the other party's needs and yields to them?
• Which statement best describes the entrepreneurial mindset?
• What is the purpose of a workout plan in collections?
• Responses are defined as:
• SBID stands for the four components used in risk communication. Which option lists the correct components?
• Which analytics category forecasts future outcomes based on data?
• What is amygdala hijack?
• In DISC, which style is associated with making decisions and attacking problems?
• What is the board's role in enterprise risk management (ERM)?
• What is the first governance step when a fraud incident occurs?
• Residual risk is defined as exposure after responses and equals which expression?
• What does innovation mean in Covey's framework?
• Which term is the most trusted form of marketing?
• Which statement best reflects coaching positive performance?
• What non-credit union experiences do selection committees consider when hiring a CEO of a credit union?
• Trust is the degree to which one has confidence in the capabilities, integrity, and intent of another.
• Which statement about organic growth is true?
• Which outcome is a key objective of fair lending compliance?
• A healthy labor market and falling unemployment typically result in which outcome for credit union lending?
• What term describes the brain's fight-or-flight response when the perceived threat triggers automatic emotion-driven action?
• What is a key benefit of clearly defined structures, roles, systems, and processes in a team?
• Which term describes the reputation that shapes stakeholder perceptions?
• How could macroeconomic changes affect a credit union’s liquidity?
• Which term encompasses social awareness and relationship management?
• In the context of growth strategies, which statement best describes organic growth?
• What is the purpose of capital in a credit union?
• The concept 'heroes listen' emphasizes which attributes in customer interactions?
• Which statement best describes payday and title loan companies?
• Hike the Hill provides an opportunity for credit union advocates to visit Washington, D.C. or your state capital to educate decision-makers on issues that affect credit unions and their members. What is the primary purpose of this program?
• Which statement correctly describes Net Promoter Score?
• What does adoption mean in Covey's framework?
• What is the purpose of the ERM policy?
• Which of the following is one of Lencioni's Five Dysfunctions of a Team?
• What is the purpose of the statement of financial condition (balance sheet) in credit unions?
• How long should member records be retained for regulatory compliance?
• In SBID, what does the 'desire' component represent?
• Why is testing a disaster recovery plan essential?
• Which of the following is a component of Lencioni's Five Behaviors of a Cohesive Team?
• Which statement best defines emotional intelligence?
• Who in the government influences economic activity?
• What is the primary purpose of a risk assessment matrix?
• Which conflict management style emphasizes win/win outcomes and integration of ideas?
• Intrapreneurship is defined as which of the following?
• What is the familiarity trap?
• Which of the following statements about Covey's four zones is true?
• In internal governance, which description aligns with best practice for a credit union leader?
• MAP provides tools and resources for your credit union to educate members on important issues. Which option best describes this purpose?
• What is the difference between delinquency and charge-off?
• Which term best describes the influence of environments on how teams operate?
• In SBID, which list correctly lists its components?
• Which of the following is NOT a core data quality attribute in a credit union context?
• Which term describes the level of risk a credit union is willing to accept in pursuit of its strategic objectives?
• Which concept describes improved organizational decision making through unobstructed knowledge?
• Net Promoter Score is used to measure which of the following?
• Which term describes the willingness to yield to others to maintain harmony?
• Which term means yields; aims to appease?
• Which EI factor focuses on managing interactions and relationships effectively?
• Which behavior helps a cohesive team to engage in productive debate around ideas rather than around people?
• Which of the following best defines operational risk in a credit union?
• What is the difference between product-led and member-led marketing?
• Which statement best describes the board's role in setting risk culture and tone at the top?
• If operating expenses are 600 thousand and operating income is 1,200 thousand, what is the efficiency ratio?
• Which of the following is NOT a red flag indicator for loan fraud?
• A good advocate is best described as:
• Which of the following are the three internal traps of innovation?
• Project Zip Code demonstrates credit unions' strength in numbers by which mechanism?
• In DISC, which style prefers a steady pace to avoid conflict?
• What is the proximity trap?
• An example of intrapreneurship is which of the following?
• Mitigation is defined as:
• How does the economy influence credit union operations?
• What is the purpose of an Asset-Liability Management Committee (ALCO)?
• In internal governance, a credit union leader should...
• Which statement best describes the purpose of clear structures, roles, systems, and processes in a team?
• Which CAMEL component assesses earnings?
• During which stage are differences resolved and respect built for the team leader?
• During which stage do team members push boundaries and conflict arises?
• Which elements are highlighted by the 'heroes praise well' concept?
• Which option is one of the three primary areas of team enablement factors?
• Which outcome is associated with understanding parameters of one's role in a team?
• Which statement describes the racial gap in homeownership rates?
• What term describes the beliefs, norms, and values that shape how people in an organization operate with each other?
• How does financial knowledge (FQ) differ from budgeting?
• What is 'loan-to-share' ratio and why is it important?
• Which statement correctly defines risk appetite?
• Which of the following is a factor of emotional intelligence?
• Which conflict management style focuses on winning and dominating?
• Which of the following is the first dysfunction in Lencioni's model?
• Impact is defined as:
• How can a credit union measure member satisfaction effectively?