CBT Bank Products and Services 2

Question 1

A customer wants a deposit account that pays a fixed rate but agrees not to withdraw funds for 12 months. Which product fits best?

Accepted Answer

Certificate of deposit

Answer

A certificate of deposit pays a fixed rate for a set term and usually charges a penalty if funds are withdrawn early.

Question 2

What usually happens when a CD owner withdraws principal before the maturity date?

Accepted Answer

An early withdrawal penalty, often a set number of days' interest, is charged

Answer

Banks typically charge an early withdrawal penalty, often stated as a number of days or months of interest.

Question 3

Which deposit product usually lets a customer write a limited number of checks while earning a tiered interest rate?

Accepted Answer

Money market deposit account

Answer

Money market deposit accounts usually pay tiered rates and may offer limited check-writing.

Question 4

A customer asks for a check guaranteed by the bank and drawn on the bank's own funds. What should the teller offer?

Accepted Answer

Cashier's check

Answer

A cashier's check is drawn by the bank on itself, so the bank's own funds back it.

Question 5

How does a certified check differ from a cashier's check?

Accepted Answer

A certified check is the customer's own check, which the bank guarantees by setting aside funds

Answer

For a certified check, the bank sets aside the funds and guarantees the customer's own check.

CBT - Certified Bank Teller Practice Test