Southeast Credit Union Management School (SRCUS) Year 1 Practice Test

These questions are part of the practice quiz. Start practicing

• What is a consequence of prioritizing strength over warmth?
• What is diversification and why is it important in a loan portfolio?
• Cost of funds definition
• The early credit union loans were primarily used for which purposes?
• Where and when was the first credit union formed?
• Which are the five P's that may influence ethical decisions?
• Compare ACH payments to wire transfers in terms of speed, cost, and risk.
• What is CECL and how does it change loan loss provisioning?
• What does BATNA stand for?
• What is significant about Piedmont Credit Union in Landis, North Carolina?
• Which is NOT one of the five P's that can influence ethical decisions?
• An example of written business ethics is which of the following?
• Which cooperative principle states members are the owners with democratic control and the capital of the CU?
• Which of the following statements is a direct claim made by McGonigal about stress?
• Distinguish between delinquency and default/charge-off.
• Which statement illustrates McGonigal's view that stress can be turned into energy to meet challenges?
• Which statement describes the 'The preference for progressivity' term?
• Net interest margin is calculated as:
• What do we call the emotional brain?
• Which method measures member satisfaction beyond Net Promoter Score?
• Which approach is recommended for proofreading the many internal and external emails you write and send every day?
• What is the numerator in the Return on Assets (ROA) ratio?
• In liquidity management, what do high-quality liquid assets (HQLA) indicate?
• What does BSA/AML stand for, and what are two core requirements credit unions must meet under it?
• Who elects the board of directors in a credit union?
• What is a zero-shot prompt in AI?
• Which insurer covers credit union deposits in the United States?
• In emotional intelligence, which capability best enables you to understand others' feelings?
• In the CAMELS framework, which area assesses liquidity?
• Who is responsible for independent assurance on internal controls in the three lines of defense?
• Which category does "Stance" belong to in Executive Presence?
• How should a credit union approach privacy by design for member data?
• Net interest margin is best described as the difference between which two quantities?
• Which items make up gross income?
• Which option best describes how to prepare for a negotiation?
• What does KYC stand for?
• Difference between a policy and a procedure?
• Which of the following is NOT a useful strategy for addressing a perceived lack of expressiveness when presenting?
• Which cooperative principle describes cooperation among different cooperatives?
• What is a balance sheet assets-liabilities gap and how is it used in ALM?
• What is a Suspicious Activity Report (SAR) and when is it filed?
• Under the USA PATRIOT Act, enhanced due diligence is required for which group?
• What are the two main types of negotiation?
• The Arch Test factor that includes independence and flexibility is called what?
• If loan-to-share ratio increases, what is implied about liquidity risk?
• Which of the following is the largest expense for many organizations?
• What is a key requirement of the USA PATRIOT Act that affects credit unions?
• Which is NOT a CAMELS component?
• Which stage of the AI Capability Model focuses on expanding process automation efforts, changing to a test and learn way of working and architecting use?
• What are the three schools/types of ethical theory?
• What are anti-fraud controls such as segregation of duties and continuous monitoring?
• Which stage of the AI Capability Model focuses on embedding AI into decision making, creating and selling AI, and combining traditional, generative and agentic AI
• What is a source of leverage in negotiation?
• Name LLMs (Large Language Models)
• Which cooperative principle states CUs provide education and training for members?
• How many cooperative principles are defined in the material?
• Which cooperative principle states CUs are autonomous self-help organizations controlled by members?
• In Stage 1 of the AI Capability Model, how is AI typically used?
• The term for the idea that audiences inherently want presentations to move forward is called?
• What age is our new audience?
• How would you define operational risk in a credit union context?
• Which of the following best describes the 'preference for progressivity'?
• Explain why ethics and a code of conduct matter in credit union management.
• Which statement best describes the role of internal controls in risk governance?
• Which statement best describes the ownership structure of credit unions compared to banks?
• Which Co-Op principle states CUs serve members most effectively and strengthen the CU movement by working together through state, local, national and international structures?
• What percent of people do not handle stress effectively?
• Which of the following is a recommended tip for making a good phone video?
• What was Edward A. Filene's main motivation for supporting the credit union movement?
• Which statement is a direct claim made by McGonigal in the talk?
• Which of the following best describes how interest rate risk is typically managed in a credit union?
• Define liquidity risk and name two metrics used to assess liquidity.
• Where does the new audience go for financial advice?
• Which statement best describes the board's role in risk governance?
• Which strategy does not help control emotions?
• What is the difference between generative and agentic AI?
• What does a business continuity plan (BCP) ensure for a credit union?
• Piedmont Credit Union is located in which city?
• Which cooperative principle states that credit unions are voluntary cooperative organizations?
• What does the field of membership define in a credit union, and why does it matter?
• The early loan focus being doctor bills and helping young couples set up housekeeping suggests that credit unions served what primary social need?
• How does cost of funds affect NIM?
• Which statement summarizes McGonigal's stance on beliefs about stress and its effects?
• What are the three types of AI?
• How do you choose the best AI model?
• Which statement best describes the relationship between economic democracy and political democracy as discussed in Filene's motivation?
• Explain interest rate risk and why credit unions monitor duration gap.
• What is a key component of data governance in practice?
• Describe the role of information technology governance in a credit union.
• Which of the following is not considered an asset for a financial institution?
• Why is data governance important in a credit union?
• In anti-fraud controls, what is the purpose of continuous monitoring?
• Which financial performance metric would have Net Income as its numerator?
• What are the four stages of the AI Capability Model and what do they mean?
• Which statement about stress would McGonigal most strongly disagree with?
• In the context of the talk, the relationship between beliefs about stress and measurable outcomes?
• Explain the difference between non-performing loans (NPL) and charge-offs.
• What is self-awareness?
• Net Promoter Score is primarily used to drive what in member services?
• What is prompt chaining in AI?
• What term describes formalized rules guiding behavior within an organization?
• What does CREAT prompting stand for?
• Which statement best describes how 'Conditions' in underwriting influence risk assessment?
• In the context of emotional intelligence, what role does empathy play?
• Interchange income description
• In negotiation terms, the target outcome is known as the what?
• Which statement best describes the governance structure of a credit union?
• Which option correctly lists gross income components?
• Which term best describes the ability to understand and manage your own emotions and the emotions of others?
• What is key for a good social media post?
• Which Co-Op principle states CUs are stronger when a proactive effort is made to engage everyone in governance, management and representation?
• Which of the following best summarizes the rationale behind Louise McCarren Herring's credit union concept?
• In leadership influence, warmth followed by competence is the best tactic because it facilitates what?
• A governance framework that includes a defined risk appetite and approved policies primarily provides what?
• Which cooperative principle states CUs are democratic organizations; one member one vote?
• What term describes using an external organization to provide specialized services (e.g., IT or collections) to access capabilities and manage risk and cost?
• Explain how scenario analysis is used in ALM.
• Which statement is an accurate reflection of McGonigal's claim?
• Which statement best defines emotional intelligence?
• Which statement best reflects emotional intelligence as described?
• Which statement about credit union governance is true?
• Suspicious Activity Reports (SARs) are filed as part of which program?
• Notable consequences of not managing vendor risk?
• Which statement describes concentration risk in a loan portfolio?
• What is a cooperative?
• What is typically the largest liability for a bank?
• Which approach complements Net Promoter Score for assessing member satisfaction?
• Which term describes a general rise in prices over time?
• What term is defined as the safety cushion of a credit union?
• Prompt chaining in AI is used to:
• In preparing for a negotiation, what is a decision tree used to do?
• What is the credit committee’s main function within a credit union?
• What is the primary purpose of the National Credit Union Administration (NCUA) in regulating and supervising credit unions?
• Which body is typically responsible for overseeing controls, compliance, and risk in many credit unions?
• Which stage of the AI Capability Model focuses on education, setting up policy and making data accessible?
• Under BSA/AML, which components are essential for ongoing compliance?
• Net charge offs are composed of which two components?
• Share insurance and NCUSIF protect what?
• What is the difference between a credit committee and a supervisory committee?
• Which concept is tied to a specific event?
• Which cooperative principle includes diversity, equity, and inclusion as a component?
• Which of the S's of Executive Presence addresses body position and gestures?
• Which term is used to describe the emotional part of the brain?
• Transparency is achieved when which condition holds?
• What are the five Cs of credit used in underwriting?
• What is the dual-control principle in cash handling?
• What does ADR stand for?
• Explain the role of internal controls in preventing fraud and give an example.
• CAMELS rating includes which components?
• Role of a risk appetite statement in strategic planning?
• What does the C in CAMELS stand for?
• In ethics, which three elements must be aligned?
• Stage 3 of the AI Capability Model is characterized by which focus?
• What are the two categories for all workplace writing?
• What is the purpose of a cost-benefit analysis in new product development?
• What is the purpose of the Education, Training and Information principle?
• Which statement about the primary purpose of a credit union is correct?
• Why are credit unions exempt from federal income tax?
• Purpose of a vendor risk management program?
• Capital planning is critical during growth for what primary purpose?
• In negotiation theory, which term describes the best possible outcome a negotiator hopes to achieve?
• Who helped establish credit unions all over the US?
• What is a credit union's net worth ratio and why is it important?
• In Stage 3, what is the focus?
• Which of the following is a legitimate example of action-oriented workplace writing?
• What combination is most effective for leadership influence?
• Which statement correctly describes the Diversity, Equity and Inclusion principle in coop governance?
• What is the best description of 'The preference for progressivity' in the context of presentations?
• In McGonigal's talk 'How to Make Stress Your Friend', which statement is a claim she makes?
• What is the primary objective of asset-liability management (ALM)?
• Which statement about the relationship between belief about stress and outcomes aligns with McGonigal's claims?
• Which statement is a valid contrast to McGonigal's view?
• When is the TBA writing technique used?
• What is the ideal approach for writing a complete professional email subject line?
• Who was the President when the Federal Credit Union Act was signed?
• Which statement describes OFAC and why credit unions screen members and transactions?
• List ways to be responsible with AI.
• What is a Credit Union Service Organization (CUSO) and when might a credit union use one?
• What is the purpose of a disaster recovery plan in a credit union?
• What are the three lines of defense in internal control and their roles?
• What is inflation?
• Which of the following describes the three negotiation outcomes commonly cited as stretch, expectation, and reservation?
• What is a fund transfer pricing (FTP) system used for?
• What is a trigger?
• What is a credit union shared branching network and what is its primary benefit?
• Explain the concept of the yield curve and its relevance to a credit union.
• In Stage 4, what is the focus?
• Who signed the Federal Credit Union Act in 1934?
• Which option correctly expands BATNA?
• Which Arch Test factor looks at assertiveness, self esteem, contentment, independence, flexibility and values integrity?
• Loan-to-share ratio definition and tracking?
• What is a credit union?
• Which stage of the AI Capability Model focuses on automating process, creating use cases and sharing data?
• A member share draft is a checking account; how does it impact liquidity?
• Two sources of non-interest income for credit unions and risk.
• The 'preference for progressivity' is most closely related to which presentation design consideration?
• Name two liquidity stress scenarios a credit union might simulate.
• What are the components of the CAMELS rating system?
• In Estes Park, Colorado, in 1934, what happened?
• What was the primary purpose of the credit unions movement according to Louise McCarren Herring?
• What is role-based prompting in AI?
• Which Co-Op principle focuses on member needs and the sustainable development of communities?
• What is the difference between a variable-rate and a fixed-rate loan?
• What is the Net Promoter Score (NPS) and how is it used in member service?
• In asset-liability management, what is the purpose of duration gap?
• Under the USA PATRIOT Act, ongoing monitoring for CDD is primarily intended to?
• Which tool is described as helping identify stakeholders, envision outcomes, sort possibilities, determine who benefits, and monitor outcomes in cooperative decision making?