Free CBT Cash Handling and Transactions Questions and Answers — Questions and Answers
Question 1: When balancing a cash drawer at the end of a shift, what is the first critical step a bank teller should take?
- Compare the physical cash on hand to the system-generated transaction report.
- Remove all large denomination bills and checks for the bank's deposit.
- Count the initial starting cash amount (float) and set it aside. (Correct answer)
- Bundle all currency into straps and label them with the date and time.
Correct answer: Count the initial starting cash amount (float) and set it aside.
Before reconciling the day's transactions, the initial cash fund (or 'float') that the drawer started with must be counted and separated. This ensures that only the cash from actual transactions is being balanced against the system reports.
Question 2: A customer makes a cash deposit of $12,500 into their personal savings account. According to the Bank Secrecy Act (BSA), what is the teller's primary responsibility?
- Politely ask the customer for the source of the funds.
- Complete a Currency Transaction Report (CTR) because the transaction exceeds $10,000. (Correct answer)
- Immediately notify the branch manager to approve the large cash deposit.
- Place an extended hold on the funds and provide the customer with a notice.
Correct answer: Complete a Currency Transaction Report (CTR) because the transaction exceeds $10,000.
The Bank Secrecy Act (BSA) requires financial institutions to report any single cash transaction or series of related cash transactions exceeding $10,000 in one business day by filing a Currency Transaction Report (CTR).
Question 3: While processing a transaction, a teller receives a $50 bill that feels unusual. Which of the following is the MOST reliable feature to check for authenticity on modern U.S. currency?
- The crispness and texture of the paper.
- The portrait of Ulysses S. Grant appearing lifelike.
- Color-shifting ink and an embedded security thread. (Correct answer)
- The presence of the Federal Reserve System seal.
Correct answer: Color-shifting ink and an embedded security thread.
Modern U.S. banknotes have advanced security features. The color-shifting ink (e.g., on the numeral in the lower right corner) and the embedded security thread that glows under UV light are two of the most difficult features for counterfeiters to replicate accurately.
Question 4: A customer deposits a $3,000 check into their new account, which was opened 15 days ago. According to Regulation CC (Expedited Funds Availability Act), which of the following actions is the bank permitted to take?
- Refuse the deposit because the account is too new.
- Make the first $275 available the next business day and place a hold on the rest.
- Place an extended hold on the entire amount due to the 'new account' status. (Correct answer)
- Require the customer to cash the check at the issuing bank.
Correct answer: Place an extended hold on the entire amount due to the 'new account' status.
Regulation CC allows for special exceptions on new accounts (open for less than 30 days). For most check deposits, the bank can place a hold on the funds beyond the standard schedule, though specific amounts for certain check types (like government checks) must still be made available sooner.
Question 5: To maintain security and accountability in cash handling, which of the following is considered a best practice?
- Allowing multiple tellers to work from the same cash drawer to speed up service.
- Keeping the cash drawer unlocked during business hours for quick access.
- Assigning a unique cash drawer to each teller for their shift. (Correct answer)
- Counting the entire vault's cash on the teller line in view of security cameras.
Correct answer: Assigning a unique cash drawer to each teller for their shift.
Assigning an individual cash drawer to each teller ensures that one person is solely responsible for the funds within it. This practice, known as individual accountability, is crucial for tracking discrepancies and minimizing potential losses.
Question 6: A teller's end-of-day report shows total cash receipts of $15,450. After setting aside the $200 starting float, the physical count of the cash in the drawer is $15,430. This situation is known as a:
- Batch error
- Settlement failure
- Cash overage
- Cash shortage (Correct answer)
Correct answer: Cash shortage
A cash shortage occurs when the physical cash in the drawer is less than the amount recorded by the transaction system. In this scenario, the drawer is short by $20. A cash overage would be the opposite, where the physical cash is more than the expected amount.
Free CBT Cash Handling and Transactions Questions and Answers
When balancing a cash drawer at the end of a shift, what is the first critical step a bank teller should take?