Certified Financial Management Specialist Practice Exam

Who inspects national banks for compliance with regulations?

1. Federal Bureau of Investigation

2. Office of the Comptroller of the Currency

3. U.S. Securities and Exchange Commission

4. Federal Reserve System

The correct answer is: Office of the Comptroller of the Currency

The Office of the Comptroller of the Currency (OCC) is the correct choice because it is the primary federal agency responsible for overseeing and regulating national banks and federal savings associations. The OCC's role includes ensuring that these financial institutions comply with banking laws and regulations, assessing their safety and soundness, managing risk, and protecting consumers. The OCC conducts regular examinations of national banks to evaluate their operations, financial health, and adherence to laws and regulations. By enforcing compliance and conducting these inspections, the OCC helps maintain public confidence in the national banking system and promotes the stability of the financial services marketplace. In contrast, other options like the Federal Bureau of Investigation focus on criminal investigations and law enforcement rather than banking compliance, while the U.S. Securities and Exchange Commission primarily regulates the securities industry, not banking institutions. The Federal Reserve System oversees monetary policy and regulates bank holding companies, but it does not directly inspect national banks. The specific function of inspecting national banks falls squarely within the mandate of the OCC.