Question 210 of 462 from exam CRCM: Certified Regulatory Compliance Manager

Question 210 of 462 from exam CRCM: Certified Regulatory Compliance Manager

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Question

Following institutions comes under the heading of ________________:

" Institutions subject to the commodity Futures Trading Commission

" The Federal Agriculture Mortgage Corporation or institutions charted and operating under the Farm credit Act

" Institutions charted by Congress to engage in securitizations, secondary market sales, or similar transactions, provided that the institution does not sell or transfer nonpublic personal information to nonaffiliated third parties

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Explanations

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A. B. C. D.

C

The institutions described in the question fall under the heading of "financial institutions".

Financial institutions are organizations that deal with financial transactions, such as banks, credit unions, investment companies, and insurance companies. They are subject to various laws and regulations to ensure the safety and soundness of the financial system and to protect consumers.

The institutions listed in the question are subject to specific regulations and laws.

The Commodity Futures Trading Commission (CFTC) regulates the futures and options markets in the United States. Institutions subject to CFTC oversight include commodity trading advisors, commodity pool operators, and futures commission merchants.

The Federal Agriculture Mortgage Corporation (also known as Farmer Mac) is a government-sponsored enterprise created by Congress to provide a secondary market for agricultural real estate loans. It operates under the Farm Credit Act and is regulated by the Farm Credit Administration.

Finally, institutions charted by Congress to engage in securitizations, secondary market sales, or similar transactions fall under the definition of financial institution as long as they do not sell or transfer nonpublic personal information to nonaffiliated third parties. This would include entities such as Fannie Mae and Freddie Mac, which are involved in the securitization of mortgages.

In summary, the institutions listed in the question are subject to specific regulations and laws that apply to financial institutions, which is the category they fall under.