CRB Banking Products & Customer Service 2 — Questions and Answers
Question 1: A customer wants to earn interest while maintaining easy access to funds for emergencies. Which product best meets this need?
- Certificate of Deposit (CD)
- Money Market Account (Correct answer)
- Fixed Annuity
- Treasury Bond
Correct answer: Money Market Account
Money market accounts offer competitive interest rates with liquidity, typically allowing limited monthly withdrawals.
Question 2: Under Regulation E, how many business days does a bank have to investigate and resolve a consumer's unauthorized electronic fund transfer complaint after receiving notice?
- 5 business days
- 10 business days (Correct answer)
- 45 business days
- 90 business days
Correct answer: 10 business days
Reg E requires banks to investigate unauthorized EFT claims within 10 business days, or provisionally credit the account and extend to 45 days.
Question 3: Which feature distinguishes a Home Equity Line of Credit (HELOC) from a Home Equity Loan?
- HELOC funds are disbursed in a lump sum at closing
- HELOC has a variable interest rate during the draw period (Correct answer)
- HELOC is not secured by the borrower's home
- HELOC requires no minimum monthly payment
Correct answer: HELOC has a variable interest rate during the draw period
HELOCs function as revolving credit with variable rates during the draw period, unlike home equity loans which have fixed rates and lump-sum disbursement.
Question 4: A customer complains that an ATM dispensed $100 less than requested but the account was debited for the full amount. What is this called?
- Check kiting
- ATM dispense error (Correct answer)
- Counterfeit currency claim
- Unauthorized transfer
Correct answer: ATM dispense error
An ATM dispense error occurs when the machine fails to deliver the full requested amount, requiring a dispute investigation.
Question 5: Which savings vehicle offers a guaranteed fixed return and is FDIC-insured but penalizes early withdrawal?
- Money Market Fund
- High-Yield Savings Account
- Certificate of Deposit (Correct answer)
- Series I Savings Bond
Correct answer: Certificate of Deposit
CDs offer guaranteed fixed rates and FDIC insurance but impose an early withdrawal penalty if funds are accessed before maturity.
Question 6: A retail banker should recommend an overdraft protection transfer from a linked savings account primarily because it:
- Eliminates all overdraft fees permanently
- Typically costs less than a standard overdraft fee per occurrence (Correct answer)
- Is required by federal law for all checking accounts
- Converts the checking account to a credit product
Correct answer: Typically costs less than a standard overdraft fee per occurrence
Overdraft protection transfers usually incur a small transfer fee, which is typically lower than the standard NSF/overdraft fee charged per item.
Question 7: When cross-selling banking products, which practice is considered a violation of ethical sales standards?
- Explaining the benefits of a product that suits the customer's stated needs
- Bundling products to offer a relationship discount
- Opening accounts for customers without their knowledge or consent (Correct answer)
- Recommending a savings account to a customer with no savings
Correct answer: Opening accounts for customers without their knowledge or consent
Opening accounts without customer consent is unauthorized and unethical, as highlighted by major industry enforcement actions.
CRB Banking Products & Customer Service 2
A customer wants to earn interest while maintaining easy access to funds for emergencies.
Which product best meets this need?