Banking Deposit Operations 2

Question 1

A customer wants to add a joint owner to an existing savings account. What documentation is typically required from the new joint owner?

Accepted Answer

Government-issued ID and a completed signature card

Answer

Adding a joint owner requires the new party to provide government-issued ID for CIP compliance and sign a new signature card.

Question 2

Which type of endorsement restricts a check to deposit only into a specific account?

Accepted Answer

Restrictive endorsement

Answer

A restrictive endorsement (e.g., 'For deposit only to account #12345') limits how the check can be processed.

Question 3

Under Regulation CC, what is the maximum hold period a bank can place on a local check deposited by a new account customer?

Accepted Answer

5 business days

Answer

For new accounts (open less than 30 days), Regulation CC allows up to a 5-business-day hold on local checks.

Question 4

A customer deposits $12,000 in cash in one transaction. What must the teller do?

Accepted Answer

File a Currency Transaction Report (CTR)

Answer

Cash transactions over $10,000 require the bank to file a Currency Transaction Report (CTR) with FinCEN.

Question 5

What happens to the interest accrued on a CD if a customer withdraws funds before the maturity date?

Accepted Answer

An early withdrawal penalty is charged, which may forfeit some interest

Answer

Early CD withdrawals typically incur a penalty of forfeited interest, the amount depending on the CD term and bank policy.

Banking Practice Test