CBT Account Opening and Maintenance

Question 1

Under the Bank Secrecy Act's Customer Identification Program (CIP), which document must a bank collect when opening a new individual account?

Accepted Answer

Name, date of birth, address, and identification number (e.g., SSN or TIN)

Answer

CIP regulations require banks to collect at minimum the customer's name, date of birth, address, and an identification number before opening an account.

Question 2

What is the primary purpose of a signature card in banking?

Accepted Answer

To provide a record of authorized signers for verifying transactions on the account

Answer

A signature card records the signatures of account holders and authorized signers, allowing bank staff to verify the authenticity of checks and withdrawal requests.

Question 3

A joint account with 'right of survivorship' means:

Accepted Answer

The surviving account holder automatically inherits the full account upon the other's death

Answer

Right of survivorship (JTWROS) means when one joint owner dies, their share passes automatically to the surviving owner(s) without going through probate.

Question 4

What does 'FDIC insurance' cover per depositor per insured bank?

Accepted Answer

Up to $250,000 per depositor per ownership category per insured bank

Answer

The FDIC insures deposits up to $250,000 per depositor, per insured bank, per account ownership category (e.g., individual, joint, retirement).

Question 5

Which account type is typically used for business transactions and earns little or no interest?

Accepted Answer

Commercial checking account

Answer

Commercial checking accounts are designed for business day-to-day transactions and typically offer unlimited transactions but little to no interest on balances.

CBT - Certified Bank Teller Practice Test

CBT - Certified Bank Teller Practice Test

CBT Account Opening and Maintenance