Bank Code Knowledge Assessment — Questions and Answers

Question 1: Which document other than a voided check can US banks typically accept to set up ACH direct deposit?

A credit card statement
A government ID
A direct deposit authorization form from the bank (Correct answer)
A recent utility bill

Correct answer: A direct deposit authorization form from the bank

Most US banks provide a direct deposit authorization form (or pre-filled letter) that includes your routing and account numbers as an alternative to a voided check.

Question 2: Under the USA PATRIOT Act, what customer information must US banks collect when opening accounts that are linked to routing numbers?

Only name and address
Employment history and income
Credit score and social media profiles
Name, date of birth, address, and government-issued ID number (CIP requirements) (Correct answer)

Correct answer: Name, date of birth, address, and government-issued ID number (CIP requirements)

The USA PATRIOT Act's Customer Identification Program (CIP) requires banks to collect name, date of birth, address, and government-issued ID number before opening accounts.

Question 3: When a US bank merges with another, who must approve any routing number consolidation or changes?

The state banking commissioner
The Federal Reserve Board of Governors
The FDIC
The ABA Routing Number Policy and Administration department (Correct answer)

Correct answer: The ABA Routing Number Policy and Administration department

Routing number consolidation or changes during bank mergers must be approved by the ABA Routing Number Policy and Administration department, which maintains the national registry.

Question 4: Which US payment app allows users to send money using just a bank routing and account number without a debit card?

Google Pay (card only)
Venmo (card only)
Apple Pay
PayPal (bank transfer option) (Correct answer)

Correct answer: PayPal (bank transfer option)

PayPal allows users to link a bank account using routing and account numbers and send money or pay for purchases via bank transfer.

Question 5: Which tool can verify whether a US routing number is valid before submitting an ACH payment?

The FDIC BankFind database
The ABA routing number lookup tool at routingnumber.aba.com (Correct answer)
The Federal Reserve's Fedwire directory
The CFPB complaint database

Correct answer: The ABA routing number lookup tool at routingnumber.aba.com

The ABA offers a routing number lookup tool at routingnumber.aba.com that allows verification of whether a routing number is valid and which bank it belongs to.

Question 6: What does ABA stand for in the context of US bank codes?

American Bankers Association (Correct answer)
American Banking Association
Automated Banking Authority
Associated Bank Administrators

Correct answer: American Bankers Association

ABA stands for American Bankers Association, which established the routing number system used in US banking.

Question 7: Which US regulation requires banks to make funds from deposited checks available within certain timeframes?

Regulation CC (Expedited Funds Availability Act) (Correct answer)
Regulation Z
Regulation E
Regulation D

Correct answer: Regulation CC (Expedited Funds Availability Act)

Regulation CC, implementing the Expedited Funds Availability Act, requires banks to make funds from deposited checks available within specific timeframes based on check type and account history.

Question 8: What is the most common cause of a failed ACH direct deposit?

Wrong currency specified
Transposed digits in the routing or account number (Correct answer)
Incorrect SWIFT code
Expired account number

Correct answer: Transposed digits in the routing or account number

The most common cause of failed ACH direct deposits is transposed digits in the routing number or account number, causing the payment to be rejected or misdirected.

Question 9: Which US government benefit uses routing and account numbers for electronic payment delivery?

Social Security, tax refunds, veterans benefits, and most federal payments (Correct answer)
Only Social Security payments
Only tax refunds
Only payroll for federal employees

Correct answer: Social Security, tax refunds, veterans benefits, and most federal payments

The US government uses routing and account numbers to deliver virtually all federal electronic payments including Social Security, tax refunds, veterans benefits, and federal payroll.

Question 10: In a SWIFT code, what do the two characters after the bank code represent?

The account type
The transfer amount
The country code (Correct answer)
The branch number

Correct answer: The country code

Characters 5-6 of a BIC are the ISO country code identifying the bank's nation.

Question 11: What does a bank's SWIFT/BIC code primarily identify?

The customer's account balance
The interest rate on a loan
The currency of the account
The specific bank and branch in international transfers (Correct answer)

Correct answer: The specific bank and branch in international transfers

A SWIFT/BIC code uniquely identifies a financial institution and branch for international payments.

Question 12: For a person-to-person payment using a bank account on Cash App, what is needed to link the account?

Bank username and password only
SWIFT code and account number
Routing and account numbers (Correct answer)
Only a debit card number

Correct answer: Routing and account numbers

Cash App requires your bank's routing number and account number to link a bank account for transfers.

Question 13: What is the quickest official way to confirm your bank's routing number online?

Ask another customer
Read it off an ATM receipt total
Check the bank's official website or mobile app (Correct answer)
Guess based on the bank name

Correct answer: Check the bank's official website or mobile app

A bank's official website or app lists the correct routing number for your account.

Question 14: If a business enters a customer's routing number correctly but the account number has extra digits, what return code will they receive?

R01 — Insufficient Funds
R20 — Non-Transaction Account
R10 — Customer Advises Not Authorized
R04 — Invalid Account Number (Correct answer)

Correct answer: R04 — Invalid Account Number

An account number with the wrong number of digits or invalid format will generate an R04 return code — Invalid Account Number.

Question 15: Routing numbers printed on checks are considered:

Encrypted data
Semi-public information used in normal banking transactions (Correct answer)
Highly confidential information
Secret codes known only to the bank

Correct answer: Semi-public information used in normal banking transactions

Routing numbers are semi-public — they identify the bank and are printed openly on checks, though your full account details should remain protected.

Question 16: What is FinCEN's role in relation to bank routing numbers and wire transfers?

FinCEN processes all wire transfers
FinCEN collects and analyzes financial transaction data including wire transfers to detect money laundering (Correct answer)
FinCEN assigns routing numbers to banks
FinCEN insures wire transfer funds

Correct answer: FinCEN collects and analyzes financial transaction data including wire transfers to detect money laundering

FinCEN (Financial Crimes Enforcement Network) collects and analyzes financial transaction reports — including wire transfer data — to identify and combat money laundering and other financial crimes.

Question 17: A bank's ACH routing number and its wire transfer routing number are:

Always different
Sometimes the same, sometimes different (Correct answer)
Determined by the account holder
Always the same

Correct answer: Sometimes the same, sometimes different

Some banks use the same routing number for both ACH and wire transfers, while others maintain separate routing numbers for each type.

Question 18: Which code is required when making a payment via Venmo or Zelle that is linked to a bank account?

No bank codes are needed
IBAN
ABA routing number and account number are linked during setup (Correct answer)
SWIFT code

Correct answer: ABA routing number and account number are linked during setup

When linking a bank account to Venmo or Zelle, you provide your ABA routing number and account number during the initial setup process.

Question 19: Two banks merged. What should you verify about your routing number afterward?

Nothing ever changes
Whether the surviving bank issued a new routing number (Correct answer)
That your CVV updated
That your ZIP code matched

Correct answer: Whether the surviving bank issued a new routing number

Mergers can result in a new routing number, so confirm the current one with the bank.

Question 20: For a domestic US wire transfer, which routing number should you provide?

MICR number
Wire transfer routing number (Correct answer)
SWIFT code
ACH routing number

Correct answer: Wire transfer routing number

Domestic US wire transfers require the wire transfer routing number, which may differ from the ACH routing number used for electronic payments.

Question 21: When writing a routing number on a bank form, which format is correct?

With a leading zero dropped (e.g., 21000089)
With spaces (e.g., 021 000 089)
As a continuous 9-digit number (e.g., 021000089) (Correct answer)
With dashes (e.g., 021-000-089)

Correct answer: As a continuous 9-digit number (e.g., 021000089)

Routing numbers are written as a continuous 9-digit number with no spaces, dashes, or omitted leading zeros.

Question 22: Which scam commonly exploits routing and account number information?

Fake check scams leading to ACH fraud (Correct answer)
ATM skimming
Phishing for SWIFT codes
IBAN spoofing

Correct answer: Fake check scams leading to ACH fraud

Fake check scams often trick victims into revealing account details or cashing fraudulent checks, enabling ACH fraud using stolen routing and account numbers.

Question 23: What is the best way to prevent routing number errors when receiving payment information from customers?

Use a pre-note or micro-deposit verification process before the first real transaction (Correct answer)
Require customers to mail physical checks only
Process all payments manually by phone
Verify routing numbers against FDIC records

Correct answer: Use a pre-note or micro-deposit verification process before the first real transaction

Pre-note verification or micro-deposit confirmation sends a zero-dollar or small test transaction first to verify the routing and account numbers are valid before processing real payments.

Question 24: What is a 'pre-note' in ACH processing?

A warning sent to the customer before debiting their account
A legal notice required before first ACH debit
A pre-authorization hold on the account
A zero-dollar test transaction that verifies routing and account number validity (Correct answer)

Correct answer: A zero-dollar test transaction that verifies routing and account number validity

A pre-note is a zero-dollar ACH test entry sent before real transactions to confirm that the routing number and account number are valid and can receive payments.

Question 25: Under the Gramm-Leach-Bliley Act, how must banks protect customers' routing and account number information?

By encrypting all data stored in the cloud only
By storing data only in physical form
By implementing security programs to protect nonpublic personal financial information (Correct answer)
By sharing data only with government agencies

Correct answer: By implementing security programs to protect nonpublic personal financial information

The Gramm-Leach-Bliley Act requires financial institutions to implement comprehensive security programs to protect customers' nonpublic personal financial information, including account and routing details.

Question 26: What does 'positive pay' help protect against in US banking?

SWIFT network breaches
Wire transfer fraud
Unauthorized ACH debits
Check fraud by verifying check details before clearing (Correct answer)

Correct answer: Check fraud by verifying check details before clearing

Positive pay is a check fraud prevention service where the bank matches issued check details (number, amount, payee) against presented checks before clearing them.

Question 27: What happens if you enter a routing number with only 8 digits on an ACH form?

The system adds a leading zero automatically
The form auto-completes the 9th digit
The payment processes normally
The form will reject the entry or the payment will fail validation (Correct answer)

Correct answer: The form will reject the entry or the payment will fail validation

A routing number with only 8 digits is invalid — ACH systems require exactly 9 digits and will reject any entry that does not meet this requirement.

Question 28: When completing IRS Form 8888 for a tax refund split deposit, what information is required for each account?

Bank name and branch only
ABA routing number and account number for each account (Correct answer)
SSN and account number
SWIFT code and IBAN

Correct answer: ABA routing number and account number for each account

IRS Form 8888 requires the ABA routing number and account number for each bank account you want to split your tax refund into.

Question 29: Where can you find your BIC number?

Your credit card
The BIC/SWIFT finder
Your bank statements, online banking account, or local branch (Correct answer)
The recipient's bank statements

Correct answer: Your bank statements, online banking account, or local branch

Your BIC/SWIFT number is a crucial piece of information for international transactions and is readily available through several official sources. You can typically find it printed on your bank statements, within the account details section of your online banking portal, or by directly contacting your local bank branch for assistance.

Question 30: When setting up direct deposit for a US paycheck, which two pieces of information are always required?

SWIFT code and account number
Bank name and branch address
IBAN and BIC code
ABA routing number and account number (Correct answer)

Correct answer: ABA routing number and account number

Setting up direct deposit in the US requires your bank's ABA routing number and your specific account number.

Question 31: If an ACH payment is returned due to an incorrect routing number, who typically bears responsibility for the error?

The receiving bank
NACHA
The originating bank or business that submitted the incorrect information (Correct answer)
The Federal Reserve

Correct answer: The originating bank or business that submitted the incorrect information

The originating bank or business that submitted the incorrect routing number is typically responsible for the error and must correct and resubmit the payment.

Question 32: What is the safest way to share your routing and account numbers with an employer for direct deposit?

Over the phone
Via email
Through the employer's secure HR portal or in person (Correct answer)
Text message

Correct answer: Through the employer's secure HR portal or in person

Sharing banking details through a secure HR portal or in person is safest, as email, phone, and text can be intercepted.

Question 33: What is the maximum number of characters allowed in an IBAN?

24
40
30
34 (Correct answer)

Correct answer: 34

An IBAN can be up to 34 alphanumeric characters long, varying by country.

Question 34: If you accidentally provide your savings account routing number instead of your checking account routing number for direct deposit, what typically happens?

Nothing happens until payroll is notified
The deposit is automatically redirected to the correct account
The deposit goes to the savings account instead of checking (Correct answer)
The deposit is rejected and returned

Correct answer: The deposit goes to the savings account instead of checking

If you provide a savings account's routing and account number instead of checking, the deposit is directed to the savings account, which may cause issues if it's a money market or restricted account.

Question 35: What do the first two digits of a US ABA routing number indicate?

The branch number
The Federal Reserve district where the bank is located (Correct answer)
The currency used
The account holder's age

Correct answer: The Federal Reserve district where the bank is located

The first two digits of an ABA routing number identify the Federal Reserve district serving the bank.

Question 36: What is a CVV used for on a bank card?

Verifying card-not-present transactions (Correct answer)
Calculating interest
Setting the credit limit
Identifying the branch

Correct answer: Verifying card-not-present transactions

The CVV (Card Verification Value) is a security code used to verify online and phone purchases.

Question 37: In a SWIFT code, which characters indicate the country?

The last three
Characters 5 and 6 (Correct answer)
The first two
Characters 7 and 8

Correct answer: Characters 5 and 6

Characters 5 and 6 of a SWIFT code are the two-letter ISO country code.

Question 38: What is the typical processing time for an ACH transfer using standard routing and account numbers?

2 weeks
5–7 business days
1–3 business days (Correct answer)
Immediate (real-time)

Correct answer: 1–3 business days

Standard ACH transfers using routing and account numbers typically take 1–3 business days to process, though same-day ACH is increasingly available.

Question 39: How many characters does a standard SWIFT/BIC code contain?

12 or 14
6 or 7
9 or 10
8 or 11 (Correct answer)

Correct answer: 8 or 11

A SWIFT/BIC code is either 8 characters (head office) or 11 characters (with a branch code).

Question 40: How should a business handle an ACH transaction that has already settled but was sent to the wrong account due to an incorrect routing number?

Write off the amount as a loss immediately
Submit a dispute to NACHA directly
File an immediate charge-back
Contact their ODFI bank to initiate a Reversing Entry or Automated Reversal (Correct answer)

Correct answer: Contact their ODFI bank to initiate a Reversing Entry or Automated Reversal

For settled ACH transactions sent to wrong accounts, businesses must work through their Originating Depository Financial Institution (ODFI) to submit a reversing entry within five banking days.

Question 41: What verification step do banks use to confirm a new ACH payee's routing number is valid?

FDIC database lookup
Manual telephone verification
Routing number check digit validation (Correct answer)
Federal Reserve approval

Correct answer: Routing number check digit validation

Banks use the ABA check digit algorithm to mathematically validate routing numbers before processing ACH transactions.

Question 42: What does it mean when a check is returned with the notation 'Refer to Maker'?

The account has been closed
The check amount exceeds daily limits
The bank cannot process the check and is referring the issue back to the check writer (Correct answer)
The routing number is invalid

Correct answer: The bank cannot process the check and is referring the issue back to the check writer

Refer to Maker means the bank cannot honor the check for an unspecified reason and is directing the payee to contact the person who wrote the check.

Question 43: What is a 'man-in-the-middle' attack in the context of bank wire transfers?

Fraudulent check deposits
A bank employee stealing funds
An attacker intercepting and altering wire transfer instructions (Correct answer)
ATM card cloning

Correct answer: An attacker intercepting and altering wire transfer instructions

A man-in-the-middle attack intercepts wire transfer communications and alters the destination routing or account numbers to redirect funds.

Question 44: What should you do before providing routing and account numbers to a new employer for direct deposit?

Convert to a wire-only account
Verify the employer is legitimate and using a secure system (Correct answer)
Change your account number first
Notify the IRS

Correct answer: Verify the employer is legitimate and using a secure system

Before sharing your banking details, verify the employer is legitimate and confirm they are using a secure HR or payroll system to protect your information.

Question 45: What security measure do banks use to protect SWIFT international wire transfers from fraud?

SSL certificates only
SWIFT's Customer Security Programme (CSP) with multi-factor controls (Correct answer)
Public key routing
Simple password authentication

Correct answer: SWIFT's Customer Security Programme (CSP) with multi-factor controls

SWIFT's Customer Security Programme (CSP) requires banks to implement mandatory security controls including multi-factor authentication and network segregation.

Question 46: To receive an international wire transfer into a US bank account, what code does the sender typically need?

ABA routing number only
CHIPS UID
SWIFT/BIC code (and sometimes IBAN) (Correct answer)
ACH routing number

Correct answer: SWIFT/BIC code (and sometimes IBAN)

To receive international wires, you provide your bank's SWIFT/BIC code; some countries also require an IBAN, which US banks can provide upon request.

Question 47: No two bank codes will ever be the same.

True (Correct answer)
False

Correct answer: True

This statement is true because bank codes are designed to be unique identifiers. Each financial institution and its specific branches are assigned a distinct code, such as a SWIFT/BIC or a routing number. This uniqueness is essential for ensuring that all financial transactions are accurately routed to their intended recipient bank without any ambiguity.

Question 48: How can a consumer protect themselves from fraudulent ACH debits using their account details?

Set up ACH debit blocks or filters with their bank (Correct answer)
Request a new routing number monthly
Use only cash for all transactions
Only use wire transfers

Correct answer: Set up ACH debit blocks or filters with their bank

Banks offer ACH debit block or filter services that allow consumers to restrict or approve which companies can debit their account via ACH.

Question 49: How many digits does a US ABA routing number contain?

6
11
8
9 (Correct answer)

Correct answer: 9

A US ABA routing number is always nine digits long.

Question 50: In the United States, what is the bank code used for domestic transfers commonly called?

Sort code
IBAN
Routing number (ABA number) (Correct answer)
BSB number

Correct answer: Routing number (ABA number)

US domestic transfers use the ABA routing number to identify the bank.

Bank Code Knowledge Assessment

Tests knowledge of banking codes used in domestic and international financial transactions, including SWIFT/BIC codes, ABA routing numbers, IBAN, and other global identifiers. Covers code types, proper usage, error detection, security protocols, and regulatory compliance.

Questions

35 min

Time Limit

70%

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