Bank Code Information 4

Question 1

What is the primary purpose of a PIN on a bank card?

Accepted Answer

To authenticate the cardholder at ATMs and terminals

Answer

A PIN (Personal Identification Number) authenticates the legitimate cardholder during transactions.

Question 2

What does 'overdraft' mean on a checking account?

Accepted Answer

Withdrawing more than the available balance

Answer

An overdraft occurs when withdrawals exceed the available balance, often incurring a fee.

Question 3

What information does a transaction's 'value date' convey?

Accepted Answer

When funds become effective for interest or availability

Answer

The value date is when a transaction takes effect for interest calculation and fund availability.

Question 4

What does the term 'beneficiary' refer to in a bank transfer?

Accepted Answer

The person or entity receiving the funds

Answer

The beneficiary is the recipient of the transferred money.

Question 5

What is a 'direct debit'?

Accepted Answer

An authorized recurring withdrawal by a payee

Answer

A direct debit is a pre-authorized arrangement letting a payee collect recurring payments from an account.

Bank Code Practice Test