Banking Practice Exam 2025 - Free Banking Practice Questions and Study Guide

A cease and desist order is a legal document that directs an individual or organization to immediately stop engaging in specific practices deemed unlawful or unfair. This order is often issued by regulatory agencies or courts when a party is found to be violating laws or regulations, such as in cases involving deceptive marketing practices, unfair competition, or other actions that may harm consumers or competitors. The order acts as a formal command, indicating that continuation of the specified behavior will result in legal consequences, including potential fines or other penalties.

The other options do not serve the same function as a cease and desist order. A capital request involves seeking additional funding or capital for business operations. A memorandum of understanding is typically a non-binding agreement that outlines the intentions of parties involved in a negotiation and does not compel immediate action. A quality assurance directive relates to maintaining standards of quality in products or services and is not related to stopping unfair practices.