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CFMP > Practice Exam 1 > Flashcards

Practice Exam 1 Flashcards

1
Q

Which of the following is considered a type of price segmentation?
A. Number of personal bankers employed by a bank
B. Number of deposit products offered by a bank
C. Amount of transactions a bank’s tellers do each day
D. Locations, as different markets vary across a bank’s service area

A

D. Locations, as different markets vary across a bank’s service area

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2
Q 
Q. Which type of reporting helps a marketing department understand where a bank's online visitors are coming from, which audiences are engaging most effectively, and which source and medium are most popular?
A.	Social insights
B.	Web analytics
C.	Data warehouse
D.	Traffic manager
A

B. Web analytics

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3
Q

Q. Who determines the bank’s need for a source or a use of funds and can dramatically alter the marketing necessary to meet those needs?
A. Asset/liability management (ALM) group
B. Loan officer
C. Bank president
D. Chief financial officer

A

A. Asset/liability management (ALM) group

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4
Q 
Q. The FIRST step in writing a marketing plan is:
A.	Setting a budget.
B.	Identifying the target market.
C.	Comprising a situation analysis.
D.	Identifying objectives and goals.
A

C. Comprising a situation analysis.

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5
Q 
Q. Which of the following components of a marketing plan focuses on the most critical and relevant environmental conditions, or changes in them, that affect the success or failure of the proposed plan?
A.	Situation analysis
B.	Marketing objectives
C.	Marketing strategy
D.	Monitoring and evaluation
A

A. Situation analysis

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6
Q 
Q. Which marketing channel produces the MOST measurable return on investment?
A.	Radio
B.	Television
C.	Paid search
D.	Billboards
A

C. Paid search

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7
Q 
Q. A marketing professional is utilizing the US Census Bureau, Nielsen Reporting, FDIC, and the Chamber of Commerce to develop a new marketing campaign. Which type of market data BEST describes these sources?
A.	Commercial
B.	Company
C.	Primary
D.	Secondary
A

D. Secondary

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8
Q 
Q. Consider the following statement found in a marketing plan: "It is our desire to establish a sound earning asset portfolio that will yield the stockholders approximately 20% return on equity (ROE)." This is an example of:
A.	A goal.
B.	A tactic.
C.	A strategy.
D.	An action plan.
A

A. A goal.

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9
Q

Q. The marketing department has been asked to provide results of a recent digital campaign. The report includes the following metrics:
• Cost per click
• Rate of return
• Bounce rate
• Traffic
• Conversion rates
These metrics are MOST commonly known as:
A. Return on marketing investment (ROMI).
B. Search engine optimization (SEO).
C. Key performance indicators (KPI).
D. Customer acquisition costs (CAC).

A

C. Key performance indicators (KPI).

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10
Q 
Q. Which bank staff member is authorized to handle all media requests during a crisis situation?
A.	Branch manager
B.	Bank president
C.	Marketing director
D.	Appointed spokesperson
A

D. Appointed spokesperson

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11
Q 
Q. Which position in the bank is responsible for enforcing or ensuring compliance with laws and regulations, governing financial and securities institutions, and financial and real estate transactions in low- to moderate-income areas?
A.	CRA officer
B.	Marketing director
C.	Compliance officer
D.	Internal auditor
A

A. CRA officer

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12
Q 
Q. Which law or regulation prohibits advertisements that are misleading or inaccurate or that misrepresent an institution's deposit contract?
A.	CAN-SPAM Act
B.	Truth in Savings Act (Regulation DD)
C.	UDAAP
D.	ECOA
A

B. Truth in Savings Act (Regulation DD)

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13
Q 
Q. Which bank personnel can assist in clarifying the language and mitigating potential issues and problems in advertising and product development?
A.	Bank president
B.	Project leader
C.	Compliance officer
D.	Marketing director
A

C. Compliance officer

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14
Q

Q. A bank’s television advertisement states consumers can get an automobile loan for $0 down but flashes small print disclosing dealership fees due at signing. Which regulation does this violate?
A. Exceptions from Broker-Dealer Requirements (Regulation R)
B. Truth in Lending Act (Regulation Z)
C. Electronic Funds Transfer Act (Regulation E)
D. UDAAP

A

D. UDAAP

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15
Q

Q. The marketing department has been tasked with creating an electronic advertisement focused on a deposit account’s promotional rate. Due to limited space, the additional required information will not fit in the advertisement. Which regulation provides guidance on the “one-click rule” regarding the advertisement clearly referring the consumer to the location where the additional required information begins?
A. UDAAP
B. Truth in Savings Act (Regulation DD)
C. Equal Credit Opportunity Act (Regulation B)
D. Expedited Funds Availability Act (Regulation CC)

A

B. Truth in Savings Act (Regulation DD)

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16
Q

Q. A bank is planning a campaign to increase deposits. The bank currently has $1,500,000 in deposits, and spends $25,000 on this campaign. At the end of the campaign, the bank now has $1,900,000 in deposits. Which formula should be used to determine the return on investment (ROI) for this marketing campaign?
A. (Net profit / total investment) × 100
B. (Gain from investment - campaign cost) / campaign cost
C. (Interest income - interest expense) / average earning assets
D. ((Income from marketing - cost of goods - marketing expenditures) / marketing expenditures) × 100

A

A. (Net profit / total investment) × 100

17
Q 
Q. When building a brand awareness campaign for social media, which key performance indicator (KPI) is the MOST important?
A.	Link clicks
B.	Impressions
C.	Number of engagements
D.	Conversions
A

B. Impressions

18
Q

Q. Bank management has asked the marketing department to create a travel club program to help customers have more loyalty to the bank and increase core deposits. The focus would primarily be on account holders aged 55 years and older. Which would be the BEST method to use to communicate this messaging?
A. Create a travel club section on the website and provide social media messaging.
B. Email the campaign to all customers and have a section on the website for the travel club.
C. Post messages on all of the bank’s social media platforms and email customers aged 55 years and older.
D. Use a direct-mail campaign to all account holders aged 55 years and older, in-person visits if they come into the bank for transactions, and email to all customers who are 55 and up.

A

D. Use a direct-mail campaign to all account holders aged 55 years and older, in-person visits if they come into the bank for transactions, and email to all customers who are 55 and up.

19
Q 
Q. Brand loyalty is PRIMARILY inspired by:
A.	Price.
B.	Product.
C.	People.
D.	Promotion.
A

C. People.

20
Q 
Q. A bank recently conducted a customer satisfaction survey revealing it was rated well below its three major competitors. The bank wishes to become the highest rated bank in customer satisfaction in a follow-up study in 24 months. That decision to become the highest rated bank in customer satisfaction within 24 months is an example of:
A.	Situation analysis.
B.	Marketing plan.
C.	Marketing objective.
D.	Marketing strategy.
A

C. Marketing objective.

21
Q 
Q. A bank's marketing department partners with a vendor to offer a new product. Both logos appear on the product and marketing materials. This strategy is referred to as:
A.	Co-branding.
B.	Family branding.
C.	Brand extension.
D.	Product line extension.
A

A. Co-branding.

22
Q 
Q. A marketing professional has utilized information management resources software to identify a specific group and tailored a marketing campaign with a mix of product, pricing, promotion, and distribution strategies. This is MOST commonly known as:
A.	Customer analysis.
B.	Market segmentation.
C.	Customer relationship management.
D.	Marketing customer information file.
A

B. Market segmentation.

23
Q 
Q. The number of different people or households exposed to an advertising message at least once during a defined period of time is referred to as:
A.	Continuity.
B.	Flighting.
C.	Frequency.
D.	Reach.
A

D. Reach.

24
Q

Q. What does the acronym SMART goals stand for?
A. Smart, Measurable, Achievable, Realistic, Time-Bound
B. Smart, Measurable, Attainable, Realistic, Time-Based
C. Specific, Measurable, Attainable, Realistic, Time-Bound
D. Specific, Measurable, Attainable, Relevant, Time-Based

A

D. Specific, Measurable, Attainable, Relevant, Time-Based

25
Q 
Q. A natural disaster has destroyed a bank branch and the surrounding community. The marketing team has been tasked with notifying the public that the bank is serving customers at nearby locations. This task is considered a form of:
A.	Advertising.
B.	Public relations.
C.	Government affairs.
D.	Digital communication.
A

B. Public relations.

26
Q 
Q. An employee can impact the recognition of a bank’s name and logo as being synonymous with customer satisfaction by meeting customer expectations and providing a great experience. This helps with strengthening the bank's:
A.	Mission statement.
B.	Brand identity.
C.	Marketing initiative.
D.	Customer service.
A

B. Brand identity.

27
Q

Q. In which of the following ways can a marketing professional report return on investment (ROI) on a campaign?
A. Social media HELOC campaign, direct mail campaign, nonprofit check presentation
B. Social media HELOC campaign, direct mail campaign, and billboard creative
C. Billboard creative, social media HELOC campaign, nonprofit check presentation
D. Social media HELOC campaign, direct mail campaign, digital ad campaign

A

D. Social media HELOC campaign, direct mail campaign, digital ad campaign

28
Q 
Q. The bank's compliance officer has asked the marketing department for a list of all of the billboard locations and direct mail campaign addresses for an upcoming FDIC exam. Why may this information be needed?
A.	CRA
B.	CAN-SPAM
C.	Truth in Lending Act (Regulation Z)
D.	Truth in Savings Act (Regulation DD)
A

A. CRA

29
Q 
Q. When building a brand promise, a marketing professional identifies “What the bank offers” and “What the market wants.” Where these two areas overlap represents:
A.	Customer experience.
B.	Value proposition.
C.	Product development.
D.	Core values.
A

B. Value proposition.

30
Q

Q. The average deposit account balance for a bank is below the marketplace average per the FDIC summary of deposits. What does this MOST likely indicate?
A. The bank is not leveraging account relationships effectively.
B. The bank lacks advertising penetration in the area.
C. The bank does not have an effective product mix.
D. The branch personnel are not cross-selling effectively.

A

A. The bank is not leveraging account relationships effectively.

31
Q

Q. When rolling out a new advertising campaign, which of the following is LEAST effective in ensuring that employees understand the product?
A. Distributing a sales script
B. Obtaining employee input prior to roll out
C. Distributing information on the product ahead of time
D. Expanding radio coverage to include additional markets

A

D. Expanding radio coverage to include additional markets

32
Q

Q. A bank’s benchmark analysis indicates its home loan penetration is stronger than the industry benchmark. What might this suggest?
A. Homogeneous demographic footprint
B. Limited mortgage lenders in the market
C. Existence of credit-worthy households
D. Successful lending strategy

A

C. Existence of credit-worthy households

33
Q 
Q. The bank's profit goals require a net interest margin of at least 4.75%. The FASTEST way to reach this goal is to:
A.	Lower deposit yields.
B.	Increase deposits.
C.	Increase service fees.
D.	Establish an aggressive loan program.
A

A. Lower deposit yields.

34
Q 
Q. According to the "4 Ps of the Marketing Mix", any good, service, idea, or location that satisfies customers’ needs or desires is referred to as a:
A.	Place.
B.	Price.
C.	Product.
D.	Promotion.
A

C. Product.

35
Q 
Q. Which of the following impacts a bank's product, pricing, and distribution strategies as well as advertising practices?
A.	Customer desire
B.	Microenvironment
C.	Regulatory limitations
D.	Local market conditions
A

C. Regulatory limitations

CFMP (4 decks)

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