Bank Code Information 5

Question 1

What does a 'wire transfer' refer to?

Accepted Answer

An electronic transfer of funds between banks

Answer

A wire transfer electronically moves money directly between bank accounts, often same-day.

Question 2

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

Accepted Answer

It indicates the Federal Reserve district

Answer

The leading digits of an ABA routing number correspond to the Federal Reserve district handling the bank.

Question 3

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

Accepted Answer

Automated Clearing House

Answer

ACH (Automated Clearing House) is the network for electronic payments like payroll and bill pay.

Question 4

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

Accepted Answer

The lowest balance needed to avoid fees

Answer

A minimum balance is the amount that must be maintained to avoid maintenance fees or earn benefits.

Question 5

What does the term 'ledger balance' mean?

Accepted Answer

The account balance at the start of the business day

Answer

The ledger balance reflects the posted balance at the beginning of the day before pending items.

Bank Code Practice Test