Banks as Service Providers
The Gramm-Leach-Bliley Act repealed key provisions of which banking law?
Glass-Steagall Act
What financial report is a detailed list of assets, liabilities, and capital accounts showing the financial status of the bank as of a given date?
statement of condition
Of the following items presented for deposit, which one is a cash item?
coin and currency a payroll check properly endorsed
a draft that cannot be paid unless the auto title is attached
a check drawn on a bank in a foreign country
a payroll check properly endorsed
Who initiates the check payment process by writing a check on his or her bank account?
drawer
What service can consumers use to directly purchase securities issued by federal agencies?
TreasuryDirect
What law did Congress pass to restore investor confidence in publicly held corporations?
Sarbanes-Oxley Act
What is the greatest source of bank income?
lending function
Of the following services, which one allows customers to obtain cash or purchase goods and services through direct access to balances in checking or savings accounts?
debit card
account transfer
balance inquiry
automatic teller machine
debit card
Which of the following is a negotiable instrument created by the Check Clearing in the 21st Century Act?
teller’s check
certified check
cashier’s check
substitute check
substitute check
funds transfer transaction in which claims and obligations are satisfied?
settlement
Ford Motor Credit Company is a:
Finance Company
A bank that has greater liabilities than assets is:
insolvent
What account relationship is exemplified by the title Frank Burns d/b/a Frank’s Hardware?
sole proprietorship
Which entity prints and begins the cash distribution process?
U.S. Treasury Bureau of Engraving and Printing
Which of the following is the electronic process of printing numbers near the bottom of the front of a check in order to facilitate processing?
check clearing
radio frequency identification
magnetic ink character recognition
SWIFT
magnetic ink character recognition
Which banking agency is responsible for chartering, examining, and supervising national banks?
Office of the Comptroller of the Currency
The chief risk with a loan is:
credit risk
The taxpayer identification number for a business organization is a(n):
EIN
Which of the following requires the depositary bank to place its endorsement in the proper location on the check?
Uniform Commercial Code Article 3
Regulation E
Regulation J, Collection of Checks and Funds Transfers
Regulation CC, Expedited Funds Availability Act
Regulation CC, Expedited Funds Availability Act
The Electronic Fund Transfer Act and Regulation E establish:
the rights and responsibilities of consumers and banks in EFT systems
The Fair and Accurate Credit Transaction Act of 2003 was passed to help stop:
Identity Theft
Which of the following are not typically found in a bank investment portfolio?
stock options
Which of the following Federal Reserve regulations implements the Expedited Funds Availability Act (EFAA) and governs the availability of funds?
Regulation D
Regulation E
Regulation CC
Regulation DD
Regulation CC
What check fraud technique involves the opening of two or more checking accounts and drawing against nonexistent balances?
kiting
Which of the following is an electronic version of a paper check that includes the date, payee name, payment amount, and signature and bears a digital signature security code?
RDC check
substitute check
EBPP check
e-check
e-check