CBT Account Opening and Maintenance

Question 1

Under the Bank Secrecy Act's Customer Identification Program (CIP), which document must a bank collect when opening a new individual account?

Accepted Answer

Name, date of birth, address, and identification number (e.g., SSN or TIN)

Answer

Social Security card only

Answer

Employer information and salary details

Answer

Credit score and financial statements

Question 2

What is the primary purpose of a signature card in banking?

Accepted Answer

To provide a record of authorized signers for verifying transactions on the account

Answer

To authorize loan applications

Answer

To track the customer's transaction history

Answer

To certify the customer's credit worthiness

Question 3

A joint account with 'right of survivorship' means:

Accepted Answer

The surviving account holder automatically inherits the full account upon the other's death

Answer

Both account holders must sign all transactions

Answer

The account is insured at double the FDIC limit

Answer

The account requires probate before funds can be distributed

Question 4

What does 'FDIC insurance' cover per depositor per insured bank?

Accepted Answer

Up to $250,000 per depositor per ownership category per insured bank

Answer

Up to $100,000 per account

Answer

All deposits regardless of amount

Answer

Up to $500,000 for joint accounts only

Question 5

Which account type is typically used for business transactions and earns little or no interest?

Accepted Answer

Commercial checking account

Answer

Money market account

Answer

Certificate of deposit

Answer

Savings account

Question 6

When a customer requests to add an authorized signer to their account, what must the teller typically verify?

Accepted Answer

The account owner's identity and obtain proper authorization/signature from the account owner

Answer

The new signer's credit score

Answer

The new signer's employment status

Answer

The new signer's relationship to the account owner