Bank Code Information 5

Question 1

What does a 'wire transfer' refer to?

Accepted Answer

An electronic transfer of funds between banks

Answer

A paper check mailed to a payee

Answer

A cash deposit at a branch

Answer

A loyalty point redemption

Question 2

What is the function of the ABA routing number's first digit grouping?

Accepted Answer

It indicates the Federal Reserve district

Answer

It shows the account balance

Answer

It encodes the PIN

Answer

It sets the credit limit

Question 3

What does 'ACH' stand for in U.S. banking?

Accepted Answer

Automated Clearing House

Answer

Account Currency Holding

Answer

Annual Credit History

Answer

Approved Cash Handling

Question 4

What information does an account's 'minimum balance' requirement convey?

Accepted Answer

The lowest balance needed to avoid fees

Answer

The maximum withdrawal allowed

Answer

The interest rate cap

Answer

The card expiration date

Question 5

What does the term 'ledger balance' mean?

Accepted Answer

The account balance at the start of the business day

Answer

The amount available right now

Answer

The pending transaction total

Answer

The overdraft fee

Question 6

What is the purpose of a 'memo' or 'reference' field on a transfer?

Accepted Answer

To provide a note identifying the payment's purpose

Answer

To set the exchange rate

Answer

To verify the PIN

Answer

To choose the currency

Question 7

What does 'FDIC insurance' protect for a U.S. depositor?

Accepted Answer

Deposits up to a set limit if the bank fails

Answer

Stock market losses

Answer

Credit card fraud

Answer

Loan interest charges