CRB CRB Branch Operations & Management 1 — Questions and Answers
Question 1: Which document is required to open a new business checking account for a US-based LLC?
- Only the owner's personal ID
- Articles of Organization and an EIN (Employer Identification Number) (Correct answer)
- A personal credit report
- A notarized letter from the state governor
Correct answer: Articles of Organization and an EIN (Employer Identification Number)
LLCs must provide formation documents (Articles of Organization) and their EIN to satisfy business account CIP requirements.
Question 2: What is the primary purpose of a branch's daily cash balancing procedure?
- To count ATM cash for audit purposes only
- To ensure actual cash on hand matches recorded transactions and identify discrepancies (Correct answer)
- To prepare monthly financial statements
- To calculate teller commissions
Correct answer: To ensure actual cash on hand matches recorded transactions and identify discrepancies
Daily cash balancing reconciles physical cash against transaction records, detecting errors or shortages before they compound.
Question 3: Under the Bank Secrecy Act, a Currency Transaction Report (CTR) must be filed for cash transactions exceeding what threshold?
- $5,000
- $10,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $10,000
Financial institutions must file a CTR for any cash transaction—deposit, withdrawal, or exchange—exceeding $10,000 in a single business day.
Question 4: What is 'structuring' in banking compliance terms?
- Organizing a bank's organizational chart
- Deliberately breaking up transactions to avoid triggering CTR reporting thresholds (Correct answer)
- Setting up CD laddering strategies for customers
- Creating a tiered interest rate structure for savings accounts
Correct answer: Deliberately breaking up transactions to avoid triggering CTR reporting thresholds
Structuring (also called 'smurfing') is illegal and involves splitting large cash transactions to stay below the $10,000 CTR threshold.
Question 5: What is the standard opening procedure a teller should follow before beginning transactions for the day?
- Log into the system, count their starting cash drawer, and verify the count against assigned beginning balance
- Begin accepting customer transactions immediately after clocking in (Correct answer)
- Count only large bills in the cash drawer
- Wait for the branch manager to count the drawer on their behalf
Correct answer: Begin accepting customer transactions immediately after clocking in
Tellers must verify their opening cash balance against the assigned amount before any transactions to establish an accurate starting point for balancing.
Question 6: Which concept describes a bank's obligation to verify the identity of customers opening new accounts?
- Know Your Customer (KYC) / Customer Identification Program (CIP) (Correct answer)
- Community Reinvestment Act (CRA) compliance
- Truth in Savings Act (TISA)
- Fair Credit Reporting Act (FCRA)
Correct answer: Know Your Customer (KYC) / Customer Identification Program (CIP)
KYC/CIP requirements, mandated by the USA PATRIOT Act, require banks to collect and verify identifying information from all new account holders.
CRB CRB Branch Operations & Management 1
Which document is required to open a new business checking account for a US-based LLC?