Information Flashcards
7 cards from real Bank Code practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Information flashcards as text
What does a 'wire transfer' refer to?
Answer: An electronic transfer of funds between banks
A wire transfer electronically moves money directly between bank accounts, often same-day.
What is the function of the ABA routing number's first digit grouping?
Answer: It indicates the Federal Reserve district
The leading digits of an ABA routing number correspond to the Federal Reserve district handling the bank.
What does 'ACH' stand for in U.S. banking?
Answer: Automated Clearing House
ACH (Automated Clearing House) is the network for electronic payments like payroll and bill pay.
What information does an account's 'minimum balance' requirement convey?
Answer: The lowest balance needed to avoid fees
A minimum balance is the amount that must be maintained to avoid maintenance fees or earn benefits.
What does the term 'ledger balance' mean?
Answer: The account balance at the start of the business day
The ledger balance reflects the posted balance at the beginning of the day before pending items.
What is the purpose of a 'memo' or 'reference' field on a transfer?
Answer: To provide a note identifying the payment's purpose
The reference field lets the sender label the payment so the recipient can identify it.
What does 'FDIC insurance' protect for a U.S. depositor?
Answer: Deposits up to a set limit if the bank fails
FDIC insurance protects depositors up to the legal limit per depositor, per bank, if the institution fails.