CBT Account Opening and Maintenance 3

Question 1

What is the main difference between a traditional savings account and a money market account?

Accepted Answer

Money market accounts typically offer higher interest rates and limited check-writing privileges

Answer

Money market accounts generally offer higher interest rates than standard savings accounts and may come with limited check-writing or debit card access.

Question 2

A certificate of deposit (CD) differs from a regular savings account in that:

Accepted Answer

CDs require funds to be held for a fixed term and impose early withdrawal penalties

Answer

A CD locks in funds for a specified term (e.g., 6 months, 1 year) and typically charges a penalty for early withdrawal, but offers higher rates in return.

Question 3

What does it mean when a bank account has an 'overdraft protection' feature linked to a savings account?

Accepted Answer

Funds are automatically transferred from the linked savings account to cover a checking account shortfall

Answer

Overdraft protection automatically transfers available funds from a linked savings account to cover transactions when the checking account balance is insufficient.

Question 4

When a customer wants to change the primary address on their account, what should the teller require?

Accepted Answer

Verification of the customer's identity before making any changes to account information

Answer

Verifying the customer's identity before making any account changes is essential to prevent unauthorized modifications and protect against fraud.

Question 5

Which IRS form do banks use to report interest income of $10 or more paid to a customer in a calendar year?

Accepted Answer

Form 1099-INT

Answer

Banks are required to issue Form 1099-INT to customers who earned $10 or more in interest during the tax year, and to report this to the IRS.

CBT - Certified Bank Teller Practice Test

CBT - Certified Bank Teller Practice Test

CBT Account Opening and Maintenance 3