CBT Vault and Cash Management 2 — Questions and Answers
Question 1: When ordering cash from the Federal Reserve, what information must a bank provide?
- The names of all tellers who will handle the incoming cash
- The specific serial number ranges needed for the order
- The denomination breakdown and total dollar amount required (Correct answer)
- The account numbers of customers who have requested large cash withdrawals
Correct answer: The denomination breakdown and total dollar amount required
Banks order cash from the Federal Reserve by specifying the denomination breakdown and total amount needed so the proper currency mix is delivered.
Question 2: What does 'strapping cash' mean in bank teller operations?
- Securing the vault door with additional physical straps or locks
- Bundling currency into standardized packages using ABA-standard currency straps (Correct answer)
- Transporting packaged cash between branch locations via armored car
- Packaging rolled coins into standard quantities for customer use
Correct answer: Bundling currency into standardized packages using ABA-standard currency straps
Strapping cash means bundling bills into standardized packages using ABA-standard currency straps, making large amounts of cash easy to count and handle.
Question 3: What is the standard number of bills contained in one ABA currency strap?
- 50 bills per strap
- 100 bills per strap (Correct answer)
- 250 bills per strap
- 500 bills per strap
Correct answer: 100 bills per strap
The ABA standard is 100 bills per currency strap, allowing tellers to quickly determine the value of a strap by knowing only the denomination.
Question 4: When a teller's cash drawer runs low during business hours, what is the correct procedure?
- Ask waiting customers to move to another teller window
- Close the teller window without notifying a supervisor
- Request additional cash from the vault through proper dual-control channels with documentation (Correct answer)
- Borrow cash informally from an adjacent teller's drawer to save time
Correct answer: Request additional cash from the vault through proper dual-control channels with documentation
Tellers must request vault cash through proper dual-control procedures and complete all required documentation to maintain an accurate audit trail.
Question 5: What is 'excess cash' in bank branch operations?
- Cash amounts held in customer high-yield savings accounts
- Cash above the branch's approved working limit that should be sent to the vault or armored carrier (Correct answer)
- Damaged or mutilated currency returned to the Federal Reserve for replacement
- Counterfeit bills discovered during teller transactions and set aside
Correct answer: Cash above the branch's approved working limit that should be sent to the vault or armored carrier
Excess cash is the amount above the branch's approved working limit; it should be transferred to the vault or picked up by an armored carrier to reduce robbery risk.
Question 6: Which procedure is correct when receiving a cash shipment from an armored carrier?
- Sign the receipt quickly and place sealed bags directly in the vault to save time
- Have a single trusted employee receive and sign for the entire shipment
- Verify and count the shipment under dual control, then fully document the receipt (Correct answer)
- Open the bags later at the end of the day when time permits
Correct answer: Verify and count the shipment under dual control, then fully document the receipt
Cash shipments must be received under dual control, counted immediately to verify the amount, and documented to ensure accountability and catch any discrepancies.
Question 7: What is the primary function of a 'cash recycler' in a modern bank branch?
- To destroy old, worn, or damaged currency that is no longer fit for circulation
- To automatically count, sort, authenticate, and dispense cash, reducing manual handling errors (Correct answer)
- To exchange foreign currency for U.S. dollars at current exchange rates
- To track and log counterfeit bills discovered across multiple branch locations
Correct answer: To automatically count, sort, authenticate, and dispense cash, reducing manual handling errors
Cash recyclers automate counting, sorting, authenticating, and dispensing currency, which improves accuracy, reduces manual errors, and speeds up teller transactions.
CBT Vault and Cash Management 2
When ordering cash from the Federal Reserve, what information must a bank provide?