FREE CBT Banking Regulations and Compliance Questions and Answers

Question 1

A customer reports an unauthorized electronic funds transfer from their checking account. According to Regulation E, what is the maximum liability for the customer if they notify the bank within two business days of learning about the loss?

Accepted Answer

$50.

Answer

Regulation E (Electronic Fund Transfer Act) limits a consumer's liability for an unauthorized transaction to $50 if they report it to the financial institution within two business days of discovering the loss or theft of their access device (like a debit card).

Question 2

Which of the following scenarios would require a bank teller to file a Currency Transaction Report (CTR) with FinCEN?

Accepted Answer

A customer makes two separate cash deposits of $6,000 each into their account on the same business day.

Answer

The Bank Secrecy Act (BSA) requires financial institutions to file a CTR (FinCEN Form 112) for currency transactions exceeding $10,000 in a single business day. This includes multiple transactions by the same person in the same day that total more than $10,000. The other options do not involve physical currency exceeding the threshold.

Question 3

A bank's responsibility to screen transactions against lists of sanctioned countries and individuals to prevent transactions with terrorists and narcotics traffickers falls under the compliance requirements of which agency?

Accepted Answer

The Office of Foreign Assets Control (OFAC)

Answer

The Office of Foreign Assets Control (OFAC), a part of the U.S. Department of the Treasury, administers and enforces economic and trade sanctions against targeted foreign countries, terrorists, and other threats to national security. Banks are required to screen transactions against OFAC's lists.

Question 4

Regulation DD, which implements the Truth in Savings Act (TISA), requires banks to disclose specific information to customers. Which of the following is a key disclosure required by Regulation DD?

Accepted Answer

The Annual Percentage Yield (APY) on an interest-bearing account.

Answer

Regulation DD's primary purpose is to help consumers make informed decisions by requiring clear disclosure of key account terms. This includes the Annual Percentage Yield (APY), interest rates, fees, and minimum balance requirements, allowing customers to compare deposit products effectively.

Question 5

A customer deposits a $7,000 personal check into their account. Under Regulation CC (Expedited Funds Availability Act), which of the following is an exception that allows a bank to place an extended hold on the funds?

Accepted Answer

The total amount of checks deposited in one day exceeds $5,525.

Answer

Regulation CC permits banks to place exception holds under specific circumstances. One of these is the 'Large Deposit' exception, which applies when the total of checks deposited in a single day is more than $5,525. The bank can then hold the amount exceeding $5,525 for a longer period.

CBT - Certified Bank Teller Practice Test

CBT - Certified Bank Teller Practice Test

FREE CBT Banking Regulations and Compliance Questions and Answers