Gramm-leach-bliley Act (Glb) Exam

The explanation for the correct answer, which is True, is that the policy of the Congress states that every financial institution has an ongoing responsibility to uphold the privacy of its customers and ensure the security and confidentiality of their nonpublic personal information. This implies that financial institutions are required to take measures to safeguard customer data and maintain their privacy.

According to the "Opt-Out" section of the GLBA, consumers are indeed given the opportunity to choose not to have their information disclosed to third parties. This means that if a consumer does not want their personal information to be shared with other organizations, they have the right to opt-out and prevent such disclosure. Therefore, the statement "True" is the correct answer.

The correct answer is "An individual who obtains financial products or services from a financial institution to be used primarily for personal, family, or household purposes." This definition accurately describes a consumer as someone who utilizes financial products or services for personal use rather than for business or commercial purposes. It emphasizes that the individual is obtaining these products or services from a financial institution, highlighting the relationship between the consumer and the institution.

The statement suggests that the term "consumer" can also refer to the legal representative of an individual. This means that someone who is legally representing another person, such as a guardian or power of attorney, can be considered a consumer in certain contexts. This expands the definition of a consumer beyond just the individual themselves.

The correct answer is "Provided to consumers in writing or electronic form." This means that the privacy policy should be given to consumers either in a physical written document or in an electronic format such as through email or on a website. It should be accessible and easily available to consumers so that they can review and understand the privacy practices of the financial institution. Posting it on the wall or verbally giving it to the consumer may not be sufficient as it may not be easily accessible or may not provide a permanent record for the consumer.

Financial institutions are required to establish appropriate safeguards to protect nonpublic personal information. This includes insuring the security and confidentiality of customer records and information, protecting against anticipated threats or hazards to the security or integrity of such records, and protecting against unauthorized access or use of such records or information that could harm or inconvenience customers. Therefore, the correct answer is "All of the above."

The GLBA, also known as the Gramm-Leach-Bliley Act, is a law that includes provisions to protect consumers' personal financial information held by financial institutions. This means that the act aims to safeguard sensitive data such as account numbers, social security numbers, and other personal information that individuals provide to financial institutions. The GLBA requires financial institutions to have proper security measures in place to protect this information and to inform consumers about their privacy policies. By doing so, the act helps to ensure the privacy and security of consumers' personal financial information.

The term "nonpublic personal information" refers to any information that is not publicly available and is related to an individual's personal and financial details. This includes information that the consumer provides to a financial institution, information that is generated as a result of any transaction or service performed for the consumer, and any other information obtained by the financial institution. Therefore, the correct answer is "All of the above."

A customer must receive a privacy notice at the time of establishing a customer relationship with a consumer, as well as no less than once annually. Additionally, the customer must receive a privacy notice once annually for the continuation of the customer relationship. Therefore, the correct answer is "All of the above" as all the options provided are valid.

The correct answer is the Federal functional regulators, the State insurance authorities, and the Trade Commission. These entities are responsible for enforcing the subchapters and regulations of the GLBA. The Fair Debt Collections Practices Act is a separate law that governs debt collection practices and is not related to the GLBA. Consumer lending institutions may be subject to the GLBA, but they are not the primary enforcers of the law. Therefore, the correct answer is the Federal functional regulators, the State insurance authorities, and the Trade Commission.