Certified Regulatory Compliance Manager (CRCM) — Question 268

For which of the following business activities must a bank holding company obtain prior approval of the Federal Reserve Board?

Answer options

• A. Operating an auto club service
• B. Serving as a safe deposit company
• C. Operating as a management consulting firm for financial institutions
• D. Selling installment loan data processing

Correct answer: A

Explanation

The correct answer is A, as operating an auto club service necessitates prior approval due to its nature and complexity. Options B, C, and D do not require such approval because they fall outside the regulatory requirements set by the Federal Reserve for bank holding companies.