CBT Account Opening and Maintenance 2

Question 1

A 'Payable on Death' (POD) or 'Transfer on Death' (TOD) designation on a bank account does what?

Accepted Answer

Transfers the account balance directly to named beneficiaries upon the owner's death without probate

Answer

POD/TOD designations allow account balances to pass directly to named beneficiaries upon the account holder's death, bypassing the probate process.

Question 2

What is a 'dormant account' in banking?

Accepted Answer

An account with no customer-initiated activity for an extended period (typically 1–3 years depending on state law)

Answer

A dormant account is one with no customer-initiated transactions for a set period; if it remains inactive longer, it may be reported to the state as unclaimed property.

Question 3

What is 'escheatment' in banking?

Accepted Answer

The transfer of unclaimed property (like dormant account funds) to the state government

Answer

Escheatment is the legal process by which banks turn over unclaimed property, such as funds in dormant accounts, to the state after a statutory period of inactivity.

Question 4

Under Regulation E, what is the time limit for a customer to report an unauthorized electronic funds transfer to limit their liability to $50?

Accepted Answer

2 business days after learning of the loss or theft

Answer

Regulation E limits liability to $50 if the customer reports the unauthorized EFT within 2 business days of learning of the loss or theft of their access device.

Question 5

What type of account is a 'Health Savings Account' (HSA) designed for?

Accepted Answer

Tax-advantaged savings to pay for qualified medical expenses, paired with a high-deductible health plan

Answer

An HSA is a tax-advantaged account available to individuals enrolled in a high-deductible health plan (HDHP), used to pay for qualified medical expenses.

CBT - Certified Bank Teller Practice Test

CBT - Certified Bank Teller Practice Test

CBT Account Opening and Maintenance 2