CBP Banking Operations Management 5

Question 1

The Federal Deposit Insurance Corporation (FDIC) standard deposit insurance coverage limit per depositor, per insured bank, per ownership category is:

Accepted Answer

$250,000

Answer

The FDIC insures deposits up to $250,000 per depositor, per insured institution, per ownership category — a limit made permanent by the Dodd-Frank Act in 2010.

Question 2

Which reconciliation process ensures that a bank's internal ledger balance for a customer account matches the physical cash and transactions recorded in branch systems?

Accepted Answer

Daily proof and settlement

Answer

Daily proof and settlement (also called 'balancing the books') reconciles all transactions processed during the day to ensure teller and system totals agree.

Question 3

A bank's 'concentration risk' in its loan portfolio refers to:

Accepted Answer

Excessive exposure to a single borrower, industry, or geographic area

Answer

Concentration risk arises when a portfolio is overly exposed to correlated borrowers or sectors, meaning a single adverse event could cause outsized losses.

Question 4

In wire transfer operations, which system is used for large-value, same-day domestic funds transfers between depository institutions through the Federal Reserve?

Accepted Answer

Fedwire Funds Service

Answer

Fedwire is the Federal Reserve's real-time gross settlement system that processes large-value, irrevocable same-day transfers between financial institutions.

Question 5

Under Regulation E, a consumer must notify their bank of an unauthorized electronic fund transfer within how many days to limit liability to $50?

Accepted Answer

2 business days

Answer

If a consumer reports the loss or theft of an access device within 2 business days, their liability is capped at $50; waiting longer increases potential liability to $500 or more.

(CBP) Certified Banking Professional Practice Test

(CBP) Certified Banking Professional Practice Test

CBP Banking Operations Management 5