Vault and Cash Management Flashcards
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Read the first 7 Vault and Cash Management flashcards as text
What is the primary purpose of dual control in vault operations?
Answer: To ensure two authorized employees are present for vault access to prevent theft
Dual control requires two authorized employees to be present for vault access, preventing internal theft and ensuring no single person can access the vault alone.
When opening the vault at the start of the business day, what should tellers do first?
Answer: Verify the alarm is deactivated and log the opening with two authorized employees present
Proper vault opening requires verifying the alarm status and logging the opening under dual control to maintain security and create an audit trail.
What is a 'cash proof' in vault operations?
Answer: A reconciliation process that verifies the vault cash balance matches recorded amounts
A cash proof is a daily reconciliation that confirms the physical cash in the vault matches the bank's accounting records, detecting any discrepancies.
Which of the following is the correct policy for vault combination security?
Answer: Vault combinations should be changed regularly and known only to authorized personnel
Vault combinations must be changed regularly and restricted to authorized personnel only to prevent unauthorized access and limit exposure when employees leave.
What is a 'bait bill' in bank vault and drawer operations?
Answer: A currency note with recorded serial numbers placed in cash drawers to help identify robbery suspects
Bait bills are currency notes with pre-recorded serial numbers placed in drawers or vaults so that if stolen during a robbery, they can be traced when spent.
How frequently should vault cash balances be reconciled according to standard banking practice?
Answer: Daily, to detect discrepancies and maintain accurate financial records
Vault balances must be reconciled daily to promptly detect any discrepancies, prevent losses, and maintain accurate and timely financial records.
What is the purpose of a 'night depository' vault at a bank branch?
Answer: To allow customers to make deposits after banking hours
A night depository vault allows business and individual customers to drop off deposits after banking hours, which are then retrieved and processed the next business day.