Bank as Service Providers
Which type of financial institution offers financial services to a group of individuals with a common tie?
Credit Union
On a bank statement of condition, what is a loan considered?
Asset
Money in a savings account is categorized as:
M2
A person in possession of a check is termed the:
Holder
Which of the following is a valid statement about e-checks?
They require sophisticated computer hardware.
They cannot be modified without invalidating the signature.
They must be converted to paper for final processing.
They are another name for Check 21 check processing.
They cannot be modified without invalidating the signature.
Which law created the central bank of the United States?
Federal Reserve Act of 1913
Which of the following is the most liquid?
Cash
Fixed Assets
Short term loans
treasury notes
Cash
What type of account by law requires upon request for the immediate conversion of collected and available deposits to coin and currency?
demand deposit account
The most recently designed U.S. note is the:
$100 Bill
Which following service would be used to process a payment made by a customer to a company?
Fedwire
ACH
CHIPS
National Settlement Service
ACH
What does the term "dual banking system" describe
Banks may be charters by state or federal government
What type of reserves consists of cash on hand, demand deposit balances at correspondent banks, and reserves kept at the Fed?
primary reserves
What service can a banker offer to prevent customer overdrafts?
automatic transfer service
What kind of check is both issued by and drawn on a bank?
cashier’s check
What federal law provides legal support for e-commerce agreements?
E-SIGN Act
What document is adopted by top management and the board of directors to guide employee actions that might reflect on the bank?
The chief risk with a loan is:
What type of account typically has a fixed maturity (from 7 days to 5 years) and a fixed interest rate tied to the maturity and the purchase amount?
CD
Alice writes Tom a check for $500.00, and writes on it "when he finishes painting my kitchen." Why does Alice’s check violate the requirements of UCC Article 3?
It is payable with conditions
What acronym stands for the payment system that allows recipients of government benefits to access their benefits from accounts established at designated firms?
EBT
What law requires federal bank regulators to periodically evaluate how financial institutions meet the credit needs of their communities?
Community Reinvestment Act
What is the return on equity (ROE) for a bank with total equity of $120,000,000 and a net profit of $12,000,000?
10 %
Which of the following is an example of an account held in joint tenancy with right of survivorship?
George Baker
Alice Baker
George or Alice Baker
George and Alice Baker
George or Alice Baker
How much risk does a teller assume in cashing a check?
greater than the risk in paying a check
Which of the following is a bank-owned system for clearing payments in the international dollar market?
Fedwire Funds Service
SWIFT
Remote Deposit Capture
CHIPS
CHIPS