CRB Banking Products & Customer Service 4

Question 1

A customer disputes a credit card charge for a service never received. Under the Fair Credit Billing Act (FCBA), what is the maximum liability for a billing error if reported timely?

Accepted Answer

$0 — all billing errors are fully covered

Answer

Under the FCBA, if a consumer reports a billing error within 60 days, the issuer must correct it; consumer liability for billing errors is $0 if properly disputed.

Question 2

Which metric measures how efficiently a bank turns deposits into loans, indicating its lending activity relative to funding?

Accepted Answer

Loan-to-Deposit Ratio

Answer

The loan-to-deposit ratio shows what percentage of deposits are being deployed as loans, reflecting a bank's liquidity and lending aggressiveness.

Question 3

A banker notices a customer who normally deposits small amounts suddenly making large cash deposits just below $10,000 multiple times in a week. This behavior is called:

Accepted Answer

Structuring (Smurfing)

Answer

Structuring, or smurfing, involves breaking up large cash amounts into smaller transactions to avoid CTR reporting requirements, which is a federal crime.

Question 4

What is the key difference between a debit card transaction processed as 'credit' versus 'debit' at a merchant terminal?

Accepted Answer

'Credit' processes through a card network with signature; 'debit' uses a PIN and processes via an EFT network

Answer

Choosing 'credit' routes a debit transaction through Visa/Mastercard networks using a signature, while 'debit' uses PIN-based EFT networks; both draw from the same checking account.

Question 5

A Health Savings Account (HSA) differs from a Flexible Spending Account (FSA) primarily because:

Accepted Answer

HSA requires enrollment in a High-Deductible Health Plan and funds roll over year to year

Answer

HSAs require HDHP enrollment, are portable, and unused funds roll over indefinitely, while FSAs typically have a 'use-it-or-lose-it' rule.

(CRB) Certified Retail Banker Practice Test

(CRB) Certified Retail Banker Practice Test

CRB Banking Products & Customer Service 4