Banking Exam Core Banking Operations 3

Question 1

Which federal agency primarily supervises nationally chartered banks in the United States?

Accepted Answer

Office of the Comptroller of the Currency (OCC)

Answer

The OCC charters, regulates, and supervises all national banks and federal savings associations.

Question 2

What is the primary purpose of a bank's reserve requirement?

Accepted Answer

To ensure banks maintain enough liquid funds to meet withdrawal demands

Answer

Reserve requirements ensure banks retain a minimum percentage of deposits as liquid assets to meet customer withdrawal demands.

Question 3

When a bank sells a mortgage loan to Fannie Mae but continues to collect payments, the bank is acting as a:

Accepted Answer

Mortgage servicer

Answer

A mortgage servicer collects payments, manages escrow accounts, and handles customer service on loans owned by another entity.

Question 4

Which type of bank account typically offers the highest interest rate but restricts the number of monthly withdrawals?

Accepted Answer

Money market deposit account

Answer

Money market deposit accounts offer higher rates than standard savings accounts but are limited to 6 convenient transactions per month under Regulation D.

Question 5

A bank issues a $10,000 cashier's check. Who is primarily liable for payment of this instrument?

Accepted Answer

The issuing bank itself

Answer

A cashier's check is a direct obligation of the issuing bank, making it more secure than a personal check.

Banking Exam Practice Test

Banking Exam Practice Test

Banking Exam Core Banking Operations 3