Practice Test GeeksCBT - Certified Bank Teller Practice Test
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Account Opening and Maintenance Flashcards

6 cards from real CBT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Account Opening and Maintenance flashcards as text

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

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

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

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

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

    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.

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

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

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

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

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

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

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

    Answer: Form 1099-INT

    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.

  6. What is a 'backup withholding' situation in a bank account context?

    Answer: The IRS requires the bank to withhold 24% of interest and dividend payments when a customer fails to provide a correct TIN

    Backup withholding at 24% is required by the IRS when a customer fails to provide a correct Taxpayer Identification Number (TIN) or is flagged by the IRS for under-reporting.