Practice Exam 2

Question 1

Which characteristic is MOST important in order for bank employees to successfully contribute to bank marketing and sales initiatives?
A.	Experience
B.	Accountability
C.	Product knowledge
D.	Customer service training

Answer 1

C. Product knowledge

Question 2

A bank has decided to implement a new digital channel, and the marketing professional is tasked with analyzing the multiple connections utilized by clients including data, transaction history, delivery channels, and touch points. This analysis is considered a customer’s:
A.	Demographics.
B.	Journey.
C.	Behavior.
D.	Segmentation.

Answer 2

B. Journey.

Question 3

Which of the following sections of the marketing planning process asks the question "Where are we now?"
A.	Situation analysis
B.	Marketing objectives
C.	Marketing goals
D.	Implementation

Answer 3

A. Situation analysis

Question 4

FFIEC requires, as part of the compliance assessment, a program that provides bank policies and procedures for customer feedback in reference to the quality and timeliness of the investigations and responses and the practices for monitoring identifiable risks of potential consumer harm, program deficiencies, and customer service issues as well as taking appropriate action on identified risks. This program is MOST commonly known as a/an:
A.	Customer satisfaction survey.
B.	Employee evaluation procedure.
C.	Communication response system.
D.	Compliant management process.

Answer 4

D. Compliant management process.

Question 5

The bank's chief executive officer (CEO) has asked the marketing department to develop an advertising campaign for a spring HELOC offer. What is the FIRST step in this process?
A.	Conduct a marketing SWOT.
B.	Define target markets.
C.	Create an execution plan.
D.	Define business goals.

Answer 5

D. Define business goals.

Question 6

Which government act requires bank websites to be accessible to those with disabilities?
A. Electronic Funds Transfer Act (Regulation E)
B. UDAAP
C. Title II of the ADA
D. CAN-SPAM

Answer 6

C. Title II of the ADA

Question 7

Which segmentation can help a marketing professional develop specific marketing communications based on an analysis of customer transaction habits?
A.	Behavioral
B.	Demographic
C.	Geographic
D.	Psychographic

Answer 7

A. Behavioral

Question 8

While measuring digital performance, seeing an increase in website traffic would identify which of the following?
A.	Return on investment
B.	Social media presence
C.	Necessary marketing changes
D.	Key performance indicator

Answer 8

D. Key performance indicator

Question 9

A bank wants to promote a new electronic banking product. The marketing department is tasked with obtaining information on current customers who use other electronic methods. Which would be the MOST effective first step?
A. Review competitor product lines.
B. Pull a targeted report from the MCIF system.
C. Poll the branch managers for recommendations.
D. Research previous campaigns.

Answer 9

B. Pull a targeted report from the MCIF system.

Question 10

A bank would like to increase their website’s organic search ranking. Which is the FIRST step in this process?
A. Start a blog to provide relevant content.
B. Increase digital advertising.
C. Conduct keyword research.
D. Evaluate and grow backlinks.

Answer 10

C. Conduct keyword research.

Question 11

Which of the following should be included in a marketing plan?
A.	Insurance risk report
B.	Budget
C.	Vendor review
D.	Advertising channel report

Answer 11

B. Budget

Question 12

What is the process in which a bank reviews all available applicable information on a potential third-party vendor, including the financial condition, reputation, relevant experience and compliance knowledge, and the effectiveness of its operations and controls?
A.	Budgeting
B.	Peer review
C.	Due diligence
D.	Vendor analysis

Answer 12

C. Due diligence

Question 13

The bank’s compliance officer has asked the marketing department for demographic research conducted before the start of a direct mail campaign. What is the compliance officer MOST likely looking for?
A. Information regarding UDAAP violations such as redlining
B. Information regarding CAN-SPAM
C. Information regarding CRA-reportable activities
D. Disclosures regarding Truth in Lending Act (Regulation Z)

Answer 13

A. Information regarding UDAAP violations such as redlining

Question 14

A bank is interested in measuring the success of a recent marketing campaign designed to increase student checking accounts. What is the BEST measurement tool for this task?
A. Calculate the return on investment (ROI) from the campaign.
B. Calculate the lift in student checking accounts.
C. Review website traffic analytics.
D. Calculate the conversion rate.

Answer 14

B. Calculate the lift in student checking accounts.

Question 15

When a bank provides loans to facilities serving low- or moderate-income individuals, such as homeless centers, it qualifies for which of the following under CRA?
A.	Employee volunteering
B.	Community development
C.	Fair lending practice
D.	Good will initiative

Answer 15

B. Community development

Question 16

The bank’s loan department wants to hang a banner promoting fixed rate mortgages. Under the Truth in Lending Act (Regulation Z) advertising rules, which potential banner text would trigger additional disclosures?
A. “Ask about our low mortgage rates”
B. “Various mortgage terms available”
C. “Excellent home loan financing available”
D. “Home loan payments starting at $500 a month”

Answer 16

D. “Home loan payments starting at $500 a month”

Question 17

Which regulation MUST be considered when developing a campaign targeting first-time home buyers with an introductory rate?
A. ECOA
B. UDAAP
C. Truth in Lending Act (Regulation Z)
D. TILA-RESPA integrated disclosures (TRID)

Answer 17

B. UDAAP

Question 18

The chief executive officer (CEO) has asked the marketing department for more details on their monthly report. Marketing reports should include which of the following?
A. Social media engagement for each post made throughout the month
B. Phone calls made to branch managers by the marketing department throughout the month
C. Social media and website analytics reports
D. Customer response rates to bank marketing emails

Answer 18

C. Social media and website analytics reports

Question 19

Return on equity is calculated by dividing shareholders equity into:
A.	Net income.
B.	Return on assets.
C.	Net interest margin.
D.	Net interest expense.

Answer 19

A. Net income.

Question 20

Which principal segmentation categorizes the market in terms of population characteristics, such as age, sex, income, occupation, and position in the life cycle?
A.	Volume segmentation
B.	Benefit segmentation
C.	Geographic segmentation
D.	Demographic segmentation

Answer 20

D. Demographic segmentation

Question 21

When marketing in digital channels, which option BEST represents consumption metrics measuring?
A.	Social media activity
B.	Web page views
C.	Subscriptions
D.	Referrals

Answer 21

B. Web page views

Question 22

Which of the following is an example of sales promotion?
A.	Branch poster
B.	Annual report
C.	Privacy notice
D.	Special events

Answer 22

A. Branch poster

Question 23

Following an acquisition, a bank would like to convert grandfathered checking account holders into one of the bank’s current checking account options. What is the FIRST step in segmenting this group of grandfathered account holders?
A.	Identify the segment.
B.	Construct segment profiles.
C.	Select a target market.
D.	Determine account balances.

Answer 23

A. Identify the segment.

Question 24

A bank is using psychographic segmentation to market their deposit products. Which spending habit demographic should the bank target in order to promote their fixed rate certificate of deposit?
A.	High-risk investors
B.	Reckless spenders
C.	Young professionals
D.	Conservative consumers

Answer 24

D. Conservative consumers

Question 25

``` Insurance products are added to the bank's product line and are introduced to the general marketplace. The new insurance products are being offered based on the fee income opportunities. This bank is PRIMARILY pursuing a growth strategy of: A. Diversification. B. Market penetration. C. Market development. D. Product development. ```

Answer 25

A. Diversification.

Question 26

``` The average number of times an advertising message reaches the same person or household during a defined period of time is referred to as: A. Reach. B. Flighting. C. Frequency. D. Continuity. ```

Answer 26

C. Frequency.

Question 27

What is the MOST important aspect of a bank's branding? A. Having a memorable logo, icon, or tagline B. Employing local staff who are committed to the community C. Building credibility and equity D. Creating shareholder value

Answer 27

C. Building credibility and equity

Question 28

``` When building a bank brand, which of the following is based upon what the organization can truly deliver and what has been learned from the marketplace that is relevant and believable for the brand? A. Brand value B. Brand vision C. Brand promise D. Brand mission ```

Answer 28

C. Brand promise

Question 29

``` Ultimately, brand equity is determined by the: A. Customer. B. Employees. C. Investment analysts. D. Chief financial officer. ```

Answer 29

A. Customer.

Question 30

``` In a publicly traded financial institution, the FIRST group to which the bank should communicate a new brand identity is its: A. Employees. B. Prospects. C. Customers. D. Community leaders. ```

Answer 30

A. Employees.

Question 31

``` Which tool does a bank use to display bank personnel and the hierarchy it follows? A. Disaster recovery plan B. Job descriptions C. Organizational chart D. Employee matrix ```

Answer 31

C. Organizational chart

Question 32

A bank's asset/liability management (ALM) group should include which group of employees? A. Human resources and marketing department B. Chief marketing officer, chief lending officer, chief credit officer, chief of retail, chief executive officer (CEO), and chief financial officer (CFO) C. Chief lending officer, chief executive officer (CEO), marketing department, and human resources D. Chief credit officer, chief of retail, and chief executive officer (CEO)

Answer 32

B. Chief marketing officer, chief lending officer, chief credit officer, chief of retail, chief executive officer (CEO), and chief financial officer (CFO)

Question 33

``` What is the marketing professional identifying when tracking the share of wallet, growth, and product lines of other banks? A. Buying patterns B. Market trends C. Strategic planning D. Competition strategy ```

Answer 33

B. Market trends

Question 34

Which of the following is the MOST important item to consider in determining whether a financial institution should allocate resources to a niche market? A. General interest in the segment B. Size of the segment C. Ability to serve the segment D. Profit/revenue potential of the segment

Answer 34

D. Profit/revenue potential of the segment

Question 35

``` A bank is looking to market to existing mortgage loan customers who do not currently have a checking account at the bank. What is the FIRST step in developing this campaign? A. Create customer journey mapping. B. Determine regulatory limitations. C. Develop a budget for the campaign. D. Identify the target audience. ```

Answer 35

D. Identify the target audience.