Certified Bank Teller (CBT) — Questions and Answers

Question 1: A check that has been signed on the back by the payee to transfer it to another party is called a:

Substitute check
Endorsed check (Correct answer)
Cashier's check
Certified check

Correct answer: Endorsed check

Endorsing a check means the payee signs the back to authorize payment or transfer, with blank, restrictive, or special endorsement types available.

Question 2: What is the primary purpose of dual control in vault operations?

To allow customers to access their safe deposit boxes
To authorize wire transfer transactions
To ensure two authorized employees are present for vault access to prevent theft (Correct answer)
To speed up vault access during busy periods

Correct answer: To ensure two authorized employees are present for vault access to prevent theft

Dual control requires two authorized employees to be present for vault access, preventing internal theft and ensuring no single person can access the vault alone.

Question 3: A customer with limited English proficiency is struggling to understand a transaction. What is the best approach?

Speak louder so the customer can hear better
Ask another customer in line to translate
Speak slowly using simple words and offer the bank's language assistance resources (Correct answer)
Complete the transaction without further explanation

Correct answer: Speak slowly using simple words and offer the bank's language assistance resources

Plain language plus the bank's approved interpreter or translated materials keeps communication clear and protects the customer's privacy.

Question 4: A check drawn on the bank's own funds and signed by a bank officer is called a:

Money order
Certified check
Cashier's check (Correct answer)
Traveler's check

Correct answer: Cashier's check

A cashier's check is issued by the bank itself, drawn on bank funds, making it a guaranteed form of payment more secure than a personal check.

Question 5: When ordering cash from the Federal Reserve, what information must a bank provide?

The denomination breakdown and total dollar amount required (Correct answer)
The account numbers of customers who have requested large cash withdrawals
The specific serial number ranges needed for the order
The names of all tellers who will handle the incoming cash

Correct answer: The denomination breakdown and total dollar amount required

Banks order cash from the Federal Reserve by specifying the denomination breakdown and total amount needed so the proper currency mix is delivered.

Question 6: Under the CDD Rule, when opening an account for a legal entity customer, a bank must identify each individual who owns at least what percentage of the equity interests?

10%
25% (Correct answer)
20%
50%

Correct answer: 25%

The beneficial ownership requirement covers each individual owning 25% or more, plus one individual with significant control.

Question 7: At the end of the day, a teller's cash count is $40 less than the system's balance. What is this condition called?

Over
Short (Correct answer)
Float
Balanced

Correct answer: Short

Having less cash than records show is a shortage and must be reported per policy.

Question 8: A customer makes cash deposits of $9,500 on several consecutive days and asks the teller how to avoid 'paperwork.' This behavior is called:

Kiting
Layering
Integration
Structuring (Correct answer)

Correct answer: Structuring

Structuring means breaking up cash transactions to avoid reporting, and it is a federal crime even when the funds are legal.

Question 9: Under the Bank Secrecy Act, cash purchases of which items between $3,000 and $10,000 must be recorded in a monetary instrument log?

Prepaid debit cards only
Savings bonds and stocks
Bank checks, cashier's checks, money orders, and traveler's checks (Correct answer)
Certificates of deposit only

Correct answer: Bank checks, cashier's checks, money orders, and traveler's checks

Banks must keep records of cash purchases of bank checks, cashier's checks, money orders, and traveler's checks from $3,000 to $10,000 inclusive.

Question 10: When a customer wants to change the primary address on their account, what should the teller require?

A fee payment before processing address changes
Approval from a bank officer for all address changes
Verification of the customer's identity before making any changes to account information (Correct answer)
A written request submitted only by mail

Correct answer: Verification of the customer's identity before making any changes to account information

Verifying the customer's identity before making any account changes is essential to prevent unauthorized modifications and protect against fraud.

Question 11: What is a 'certified check'?

A check printed on security paper
A check used for international wire transfers
A check issued by the bank from its own funds
A personal check guaranteed by the bank after verifying and setting aside funds (Correct answer)

Correct answer: A personal check guaranteed by the bank after verifying and setting aside funds

A certified check is a personal check that the bank has verified and guaranteed by setting aside the check amount from the customer's account.

Question 12: What is the primary purpose of a signature card in banking?

To certify the customer's credit worthiness
To track the customer's transaction history
To provide a record of authorized signers for verifying transactions on the account (Correct answer)
To authorize loan applications

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

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 13: A teller identifies a counterfeit $100 bill during a deposit. What is the correct action?

Keep it, give the customer a receipt, and follow procedures to report it to the U.S. Secret Service (Correct answer)
Return it to the customer and suggest another bank
Mark it and put it back in the cash drawer
Tear it up in front of the customer

Correct answer: Keep it, give the customer a receipt, and follow procedures to report it to the U.S. Secret Service

Counterfeits must be kept, never returned, and reported to the Secret Service or local police per bank policy.

Question 14: 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?

The teller has a gut feeling the check might not be good.
The check is from an out-of-state bank.
The customer's account has been open for 45 days.
The total amount of checks deposited in one day exceeds $5,525. (Correct answer)

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

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.

Question 15: Before a teller completes a transaction for a non-customer, the name comes up as a possible match on the OFAC SDN list. What is the correct next step?

Ask the person whether they are on a sanctions list
Complete the transaction and note it later
Close the person's account right away
Stop the transaction and send it to the bank's OFAC or compliance officer for review (Correct answer)

Correct answer: Stop the transaction and send it to the bank's OFAC or compliance officer for review

A possible OFAC match must be held and escalated to compliance to confirm whether it is a true match before any action is taken.

Question 16: A customer asks a teller how to deposit $9,500 today and $9,500 tomorrow 'so the bank doesn't file paperwork.' What should the teller do?

Process the deposits and follow the bank's procedure for reporting suspicious activity (Correct answer)
Refuse the deposit and tell the customer a report is being filed
Ignore the comment since each deposit is under the threshold
Explain how to split deposits to stay under $10,000

Correct answer: Process the deposits and follow the bank's procedure for reporting suspicious activity

Advising on structuring is illegal, and the conduct should be escalated for possible SAR filing without tipping off the customer.

Question 17: What is the current standard FDIC insurance limit per depositor, per insured bank, per ownership category?

$100,000
$500,000
$250,000 (Correct answer)
$150,000

Correct answer: $250,000

The standard FDIC maximum deposit insurance amount is $250,000 per depositor, per bank, per ownership category.

Question 18: Under Regulation CC, which type of deposit is typically subject to an extended hold of up to 7 business days?

A check deposited by a new account holder (account open less than 30 days) (Correct answer)
A direct deposit via ACH
A payroll check from a local employer
A US Treasury check

Correct answer: A check deposited by a new account holder (account open less than 30 days)

Regulation CC allows banks to place extended holds on deposits to new accounts (open fewer than 30 days) because the customer's deposit history has not been established.

Question 19: Why are teller cash drawers kept under a set maximum limit?

To make balancing faster
To prevent customers from making large withdrawals
To limit potential loss from robbery or theft (Correct answer)
To meet a Federal Reserve requirement for every teller

Correct answer: To limit potential loss from robbery or theft

Drawer limits reduce exposure to loss, so excess cash is sold to the vault.

Question 20: How long must banks generally retain BSA records such as CTRs and SARs with supporting documentation?

5 years (Correct answer)
3 years
7 years
2 years

Correct answer: 5 years

BSA recordkeeping rules require most records, including CTRs and SARs, to be kept for five years.

Question 21: A customer wants to cash a check made out to someone else and endorsed over to them. What is this type of check called?

Certified check
Cashier's check
Third-party check (Correct answer)
Traveler's check

Correct answer: Third-party check

A check endorsed by the original payee to another person is a third-party check, and many banks restrict cashing them.

Question 22: Under Regulation E, what is the time limit for a customer to report an unauthorized electronic funds transfer to limit their liability to $50?

24 hours after discovery
2 business days after learning of the loss or theft (Correct answer)
30 days from receiving the statement
60 days from the transaction date

Correct answer: 2 business days after learning of the loss or theft

Regulation E limits liability to $50 if the customer reports the unauthorized EFT within 2 business days of learning of the loss or theft of their access device.

Question 23: Which law requires financial institutions to give customers privacy notices explaining how nonpublic personal information is shared?

Gramm-Leach-Bliley Act (Correct answer)
Bank Protection Act
Community Reinvestment Act
Expedited Funds Availability Act

Correct answer: Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act requires privacy notices and gives consumers the right to opt out of certain information sharing.

Question 24: What information is required on a check for it to be considered a valid negotiable instrument under the UCC?

Payee name, amount in numbers only, and a stamp of authenticity
Bank seal, teller initials, and issue date
Unconditional order to pay, specific dollar amount, and maker's signature (Correct answer)
Account number, routing number, and payee address

Correct answer: Unconditional order to pay, specific dollar amount, and maker's signature

Under UCC Article 3, a valid check must be an unconditional written order to pay a fixed amount of money, signed by the drawer (maker).

Question 25: A 'substitute check' created under Check 21 must contain which statement?

'This check has been processed electronically'
'Funds guaranteed by the issuing financial institution'
'Original check has been destroyed per federal regulations'
'This is a legal copy of your check. You can use it the same way you would use the original check.' (Correct answer)

Correct answer: 'This is a legal copy of your check. You can use it the same way you would use the original check.'

Check 21 requires that substitute checks bear the specific legal equivalency statement confirming they are legally the same as the original paper check.

Question 26: An elderly customer arrives with a new 'friend' who answers all questions and directs the customer to withdraw a large sum in cash, which is unusual for the account. What is the teller's best action?

Follow bank procedures for suspected elder financial exploitation and notify a supervisor or BSA officer (Correct answer)
Ask the friend to leave and lecture the customer
Process the withdrawal without comment
Call the customer's family members directly without authorization

Correct answer: Follow bank procedures for suspected elder financial exploitation and notify a supervisor or BSA officer

Unusual withdrawals directed by a third party are red flags of elder financial exploitation that should be escalated per bank policy and may warrant a SAR.

Question 27: What is a 'bait bill' in bank vault and drawer operations?

A currency note with recorded serial numbers placed in cash drawers to help identify robbery suspects (Correct answer)
A promotional bill used to attract new customers to the branch
A counterfeit bill used for employee training exercises
A bill inserted into counting machines to test their accuracy

Correct answer: A currency note with recorded serial numbers placed in cash drawers to help identify robbery suspects

Bait bills are currency notes with pre-recorded serial numbers placed in drawers or vaults so that if stolen during a robbery, they can be traced when spent.

Question 28: Which IRS form do banks use to report interest income of $10 or more paid to a customer in a calendar year?

Form W-9
Form 1040
Form 1099-INT (Correct answer)
Form W-2

Correct answer: Form 1099-INT

Banks are required to issue Form 1099-INT to customers who earned $10 or more in interest during the tax year, and to report this to the IRS.

Question 29: A customer makes a cash deposit of $6,000 in the morning and returns in the afternoon to deposit another $5,000 in cash. According to the Bank Secrecy Act (BSA), which of the following actions must the teller take?

File a Currency Transaction Report (CTR) because the total cash amount for the day exceeds $10,000. (Correct answer)
Inform the customer they cannot make the second deposit until the next business day.
Process the second transaction as usual with no special reporting required.
File a Suspicious Activity Report (SAR) because the transactions are structured to avoid reporting.

Correct answer: File a Currency Transaction Report (CTR) because the total cash amount for the day exceeds $10,000.

The Bank Secrecy Act (BSA) requires financial institutions to file a Currency Transaction Report (CTR) for cash transactions exceeding $10,000 in a single business day. Multiple cash transactions by the same person in the same day must be aggregated. Since the customer's total cash deposits equal $11,000, a CTR is mandatory.

Question 30: Under the Customer Identification Program (CIP), which four pieces of information must a bank collect before opening an account for an individual?

Name, date of birth, address, and identification number (Correct answer)
Name, address, credit score, and photo
Name, email, mother's maiden name, and SSN
Name, phone number, employer, and income

Correct answer: Name, date of birth, address, and identification number

CIP rules under the USA PATRIOT Act require name, date of birth, address, and an identification number.

Question 31: Which regulation requires banks to disclose interest rates, fees, and the annual percentage yield (APY) on deposit accounts?

Regulation B
Regulation E
Regulation O
Regulation DD (Truth in Savings) (Correct answer)

Correct answer: Regulation DD (Truth in Savings)

Regulation DD carries out the Truth in Savings Act, which requires clear disclosure of deposit account terms, fees, and APY.

Question 32: Under Regulation CC, which of the following deposits made in person to a teller must generally be made available on the next business day?

A foreign check drawn on a Canadian bank
A U.S. Treasury check deposited into the payee's account (Correct answer)
A third-party endorsed personal check
A personal check drawn on another bank

Correct answer: A U.S. Treasury check deposited into the payee's account

Regulation CC requires next-day availability for U.S. Treasury checks deposited into an account held by the payee.

Question 33: Using the LAST model for complaints, what does the "A" stand for?

Argue
Analyze
Apologize (Correct answer)
Authorize

Correct answer: Apologize

LAST stands for Listen, Apologize, Solve, Thank.

Question 34: A customer asks for a check guaranteed by the bank and drawn on the bank's own funds. What should the teller offer?

Cashier's check (Correct answer)
Counter check
Certified check
Traveler's check

Correct answer: Cashier's check

A cashier's check is drawn by the bank on itself, so the bank's own funds back it.

Question 35: A teller is pressured by a branch manager to open accounts customers didn't request to meet sales goals. What is the ethical response?

Open accounts only for customers who won't notice
Refuse and report the pressure through compliance or the ethics hotline (Correct answer)
Comply since it's a manager's instruction
Open the accounts but close them later

Correct answer: Refuse and report the pressure through compliance or the ethics hotline

Opening unauthorized accounts is fraudulent and must be refused and reported, regardless of who instructs it.

Question 36: Which of the following is a minimum piece of information the Customer Identification Program (CIP) requires before opening an account for an individual?

Date of birth (Correct answer)
Annual income
Mother's maiden name
Employer name

Correct answer: Date of birth

CIP requires at minimum name, date of birth, address, and an identification number for individuals.

Question 37: Under the Bank Bribery Act, what is a bank employee prohibited from doing?

Receiving holiday cards from customers
Corruptly soliciting or accepting anything of value in connection with bank business (Correct answer)
Attending bank-sponsored training dinners
Accepting a paycheck from the bank

Correct answer: Corruptly soliciting or accepting anything of value in connection with bank business

The Bank Bribery Act (18 U.S.C. 215) makes it a crime to corruptly solicit or accept anything of value to influence bank business.

Question 38: What does the term 'over/short' refer to in teller balancing?

The difference between a teller's actual cash count and the amount reflected by their recorded transactions (Correct answer)
Whether a teller worked an overtime shift or left early that day
An interest rate adjustment applied above or below the current prime rate
The measurement of vault door clearance above or below the standard height

Correct answer: The difference between a teller's actual cash count and the amount reflected by their recorded transactions

Over/short describes the discrepancy between a teller's physical cash and what should be present based on recorded transactions, indicating a potential error.

Question 39: What is the purpose of the Bank Secrecy Act (BSA)?

Promote competitive banking
Encourage loan approvals
Prevent money laundering and financial crimes (Correct answer)
Protect consumer rights

Correct answer: Prevent money laundering and financial crimes

The Bank Secrecy Act (BSA) is a cornerstone of anti-money laundering (AML) efforts in the U.S. Its primary purpose is to require financial institutions to assist government agencies in detecting and preventing money laundering and other financial crimes. This is achieved by mandating the reporting of certain transactions and the maintenance of specific records.

Question 40: Under the Bank Secrecy Act's Customer Identification Program (CIP), which document must a bank collect when opening a new individual account?

Social Security card only
Name, date of birth, address, and identification number (e.g., SSN or TIN) (Correct answer)
Credit score and financial statements
Employer information and salary details

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

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 41: Why are tellers usually required to keep the cash in their drawer at or below a set limit?

To lower interest expense
To reduce losses from robbery or theft (Correct answer)
To meet CTR requirements
To speed up the end-of-day balance

Correct answer: To reduce losses from robbery or theft

Drawer limits reduce how much can be lost in a robbery, with extra cash moved to the vault.

Question 42: 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:

Cash overage
Batch error
Cash shortage (Correct answer)
Settlement failure

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.

Question 43: A teller is processing a withdrawal for a customer and counts out the money. What is the best practice for disbursing the cash to the customer to prevent disputes?

Count the bills a second time, out loud, in full view of the customer before handing them over. (Correct answer)
Place the money on the counter and have the customer count it themselves.
Slide the money through the window slot immediately after the first count to speed up the transaction.
Hand the stack of bills directly to the customer after counting it once.

Correct answer: Count the bills a second time, out loud, in full view of the customer before handing them over.

To ensure accuracy and prevent misunderstandings or disputes, the best practice is to count the money twice. The second count should be performed clearly and methodically in front of the customer, often stating the denominations aloud. This confirms the amount for both the teller and the customer, reducing the chance of error or claims of being short-changed.

Question 44: Under the Expedited Funds Availability Act (Regulation CC), how quickly must banks make funds from local checks available?

Same business day
Within 2 business days
Next business day (Correct answer)
Within 5 business days

Correct answer: Next business day

Regulation CC generally requires that funds from local checks be made available by the next business day after the banking day of deposit.

Question 45: What does it mean when a bank account has an 'overdraft protection' feature linked to a savings account?

The account is immune from NSF fees regardless of balance
The bank extends a line of credit equal to the account balance
The bank waives all overdraft fees indefinitely
Funds are automatically transferred from the linked savings account to cover a checking account shortfall (Correct answer)

Correct answer: Funds are automatically transferred from the linked savings account to cover a checking account shortfall

Overdraft protection automatically transfers available funds from a linked savings account to cover transactions when the checking account balance is insufficient.

Question 46: When a bank places an exception hold under Regulation CC, what must it provide the customer?

A written notice stating the reason for the hold and when funds will be available (Correct answer)
Nothing, as exception holds require no disclosure
A verbal explanation only
A refund of any account fees

Correct answer: A written notice stating the reason for the hold and when funds will be available

Regulation CC requires written notice of an exception hold, including the reason and the date funds will be available.

Question 47: What is 'escheatment' in banking?

Converting a personal account to a business account
The process of closing overdrawn accounts
The transfer of unclaimed property (like dormant account funds) to the state government (Correct answer)
Charging a monthly maintenance fee on inactive accounts

Correct answer: The transfer of unclaimed property (like dormant account funds) to the state government

Escheatment is the legal process by which banks turn over unclaimed property, such as funds in dormant accounts, to the state after a statutory period of inactivity.

Question 48: After a bank files a Suspicious Activity Report, the customer asks the teller whether a report was filed about them. What should the teller do?

Deny that any report exists
Confirm it so the customer can explain the activity
Not disclose the SAR or its existence to the customer (Correct answer)
Refer the customer to FinCEN for a copy

Correct answer: Not disclose the SAR or its existence to the customer

Federal law prohibits disclosing a SAR or any information that would reveal its existence to the subject of the report.

Question 49: Which regulation requires banks to disclose the Annual Percentage Yield (APY) on deposit accounts?

Regulation Z (Truth in Lending)
Regulation O
Regulation DD (Truth in Savings) (Correct answer)
Regulation B (Equal Credit Opportunity)

Correct answer: Regulation DD (Truth in Savings)

Regulation DD implements the Truth in Savings Act, which requires uniform disclosure of APY and deposit account terms.

Question 50: How does the FDIC protect bank customers?

By giving investment advice
By offering loans
By insuring deposits in case of bank failure (Correct answer)
By auditing personal accounts

Correct answer: By insuring deposits in case of bank failure

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government corporation that provides deposit insurance to depositors in U.S. commercial banks and savings institutions. This insurance protects customers' money, typically up to $250,000 per depositor per insured bank. It ensures that customers do not lose their savings if a bank fails, maintaining public confidence in the banking system.

Question 51: If a customer's check is returned marked 'Account Closed,' what does this mean?

The check signature did not match bank records
The check exceeded the daily withdrawal limit
The account on which the check was drawn no longer exists (Correct answer)
The account had insufficient funds at the time of processing

Correct answer: The account on which the check was drawn no longer exists

An 'Account Closed' return means the drawer's account was closed before or after the check was written, making payment impossible.

Question 52: A teller is offered a part-time job preparing tax returns for bank customers she meets at work. What should she do first?

Disclose the outside employment to the bank and get approval under its code of conduct (Correct answer)
Decline all outside employment forever
Accept since it's outside work hours
Accept and use bank customer lists to find clients

Correct answer: Disclose the outside employment to the bank and get approval under its code of conduct

Outside work involving bank customers can create conflicts of interest and typically requires disclosure and approval.

Question 53: A customer presents a power of attorney document and wants to withdraw funds from the principal's account. What should the teller do?

Refuse all POA transactions
Follow bank procedures to verify the POA's validity and the agent's identity (Correct answer)
Call the principal's neighbors to confirm
Accept any POA without review

Correct answer: Follow bank procedures to verify the POA's validity and the agent's identity

Banks have procedures to review POA documents and verify agents to prevent fraud and elder exploitation.

Question 54: A customer opens a joint account with a spouse. How much FDIC coverage is available for that joint account?

$250,000 total
$500,000 per co-owner
$250,000 per co-owner (Correct answer)
$100,000 per co-owner

Correct answer: $250,000 per co-owner

Joint accounts are insured up to $250,000 per co-owner, so $500,000 for two owners.

Question 55: A teller receives a check made payable to 'John Smith OR Mary Smith.' Who may endorse and cash this check?

Only John Smith
Either John or Mary Smith alone (Correct answer)
Both John and Mary Smith must endorse it together
Only Mary Smith

Correct answer: Either John or Mary Smith alone

When a check uses 'OR' between payees, either person may endorse and negotiate it independently without the other's signature.

Question 56: A certificate of deposit (CD) differs from a regular savings account in that:

CDs are not FDIC-insured
CDs require funds to be held for a fixed term and impose early withdrawal penalties (Correct answer)
CDs allow unlimited withdrawals at any time
CDs pay interest only upon maturity and nothing before

Correct answer: CDs require funds to be held for a fixed term and impose early withdrawal penalties

A CD locks in funds for a specified term (e.g., 6 months, 1 year) and typically charges a penalty for early withdrawal, but offers higher rates in return.

Question 57: What is a 'backup withholding' situation in a bank account context?

The bank withholds funds pending fraud investigation
A fee withheld for account maintenance
A hold placed on funds deposited via check
The IRS requires the bank to withhold 24% of interest and dividend payments when a customer fails to provide a correct TIN (Correct answer)

Correct answer: The IRS requires the bank to withhold 24% of interest and dividend payments when a customer fails to provide a correct TIN

Backup withholding at 24% is required by the IRS when a customer fails to provide a correct Taxpayer Identification Number (TIN) or is flagged by the IRS for under-reporting.

Question 58: Which account type is typically used for business transactions and earns little or no interest?

Money market account
Commercial checking account (Correct answer)
Certificate of deposit
Savings account

Correct answer: Commercial checking account

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

Question 59: Which regulation requires lenders to disclose the APR and finance charges on consumer loans?

Regulation E
Regulation Z (Truth in Lending) (Correct answer)
Regulation DD
Regulation P

Correct answer: Regulation Z (Truth in Lending)

Regulation Z carries out the Truth in Lending Act and requires credit cost disclosures such as APR.

Question 60: Which practice could be an unfair, deceptive, or abusive act or practice (UDAAP)?

Clearly disclosing overdraft fees
Telling customers a product is 'free' when hidden fees apply (Correct answer)
Explaining interest rates accurately
Providing account agreements upon request

Correct answer: Telling customers a product is 'free' when hidden fees apply

Misleading customers about costs is a deceptive practice prohibited under UDAAP rules enforced by the CFPB.

Question 61: Which of the following is a MICR line element found at the bottom of a US check?

Check amount written in words
Routing/transit number (Correct answer)
Payee name
Memo line

Correct answer: Routing/transit number

The MICR (Magnetic Ink Character Recognition) line contains the routing/transit number, account number, and check number for automated processing.

Question 62: A teller deposits a customer's check into his own account, planning to pay it back on payday. What is this called?

Structuring
Embezzlement (Correct answer)
Pretexting
Check kiting

Correct answer: Embezzlement

Taking money entrusted to you for personal use is embezzlement, even if you intend to repay it.

Question 63: When a customer presents a legal document granting another person authority to manage their financial affairs, this is called a:

Power of attorney (Correct answer)
Notarized affidavit
Joint tenancy agreement
Trust agreement

Correct answer: Power of attorney

A power of attorney (POA) is a legal document authorizing one person (the agent) to act on another's (the principal's) behalf in financial matters.

Question 64: Which account type names a beneficiary who receives the funds directly when the owner dies, without probate?

Escrow account
Custodial UTMA account
Corporate account
Payable-on-death (POD) account (Correct answer)

Correct answer: Payable-on-death (POD) account

A POD account passes funds directly to the named beneficiary when the owner dies.

Question 65: When a customer presents a third-party check (made out to someone else and signed over), what should a teller do first?

Verify the endorsement and follow bank policy for third-party checks (Correct answer)
Accept it without question if the customer has an account
Call the police to verify the transfer
Refuse to accept it under all circumstances

Correct answer: Verify the endorsement and follow bank policy for third-party checks

Third-party checks carry higher fraud risk, so tellers must verify the endorsement is complete and follow their bank's specific policies, which may include additional ID verification.

Question 66: A teller is friends with a customer on social media. After work, the teller posts, "What a great day! My favorite customer, John Smith, came in and was approved for a huge mortgage for his dream home!" Why is this post a major ethical violation?

It discloses specific, confidential customer information (name and transaction type) to the public. (Correct answer)
It violates the bank's policies on using social media during work hours.
It implies that the teller has favorite customers, which is unprofessional.
It could be misinterpreted as an official bank announcement.

Correct answer: It discloses specific, confidential customer information (name and transaction type) to the public.

A bank employee's duty to protect customer confidentiality extends outside the bank and to all forms of communication, including social media. Posting any non-public information about a customer's transactions or relationship with the bank is a severe breach of privacy and professional ethics.

Question 67: What step should a teller take when a customer disputes a withdrawal amount?

Review the transaction record for verification (Correct answer)
Apologize and refund without checking
Suggest checking back tomorrow
Refer the customer to a manager immediately

Correct answer: Review the transaction record for verification

When a customer disputes a withdrawal, the most professional and accurate first step is to review the transaction record. This allows the teller to verify the customer's claim against the bank's official data, identify any discrepancies, and gather factual information before escalating or making assumptions. It ensures a data-driven approach to resolving the issue.

Question 68: What is a 'restrictive endorsement' on a check?

Signing the check over to a third party
Signing only your name on the back
Writing 'For Deposit Only' with your account number (Correct answer)
Stamping the check as certified

Correct answer: Writing 'For Deposit Only' with your account number

A restrictive endorsement limits how the check can be used, typically by writing 'For Deposit Only' followed by an account number to prevent cashing.

Question 69: Under Regulation E, a consumer who reports a lost debit card within 2 business days of learning of the loss is liable for no more than:

$500
$50 (Correct answer)
Unlimited
$0

Correct answer: $50

Prompt reporting within 2 business days caps consumer liability at $50 under Regulation E.

Question 70: Why should a teller avoid discussing one customer's transaction where other customers can hear?

Because federal law bans all conversation at the window
Because it slows down the line
To protect customer privacy and confidentiality (Correct answer)
To avoid cross-selling to the wrong customer

Correct answer: To protect customer privacy and confidentiality

Discretion protects confidential financial information.

Question 71: What type of account is a 'Health Savings Account' (HSA) designed for?

General emergency savings with higher interest rates
Savings accounts specifically for senior citizens
Tax-advantaged savings to pay for qualified medical expenses, paired with a high-deductible health plan (Correct answer)
Interest-bearing accounts managed by healthcare providers

Correct answer: Tax-advantaged savings to pay for qualified medical expenses, paired with a high-deductible health plan

An HSA is a tax-advantaged account available to individuals enrolled in a high-deductible health plan (HDHP), used to pay for qualified medical expenses.

Question 72: Under the Uniform Transfers to Minors Act (UTMA), who controls the account until the minor reaches the age of majority?

The custodian (Correct answer)
The minor's school
The minor
The bank

Correct answer: The custodian

A custodian manages UTMA assets for the minor until the transfer age set by state law.

Question 73: When a check is returned due to insufficient funds (NSF), who is typically charged the NSF fee?

The bank that accepted the deposit
The Federal Reserve
The payee who deposited the check
The account holder who wrote the check (Correct answer)

Correct answer: The account holder who wrote the check

The NSF fee is charged to the account holder whose account lacked sufficient funds to cover the check they wrote.

Question 74: What is a 'dormant account' in banking?

An account with a zero balance
An account with no customer-initiated activity for an extended period (typically 1–3 years depending on state law) (Correct answer)
An account under investigation for fraud
An account that has been closed by the bank

Correct answer: An account with no customer-initiated activity for an extended period (typically 1–3 years depending on state law)

A dormant account is one with no customer-initiated transactions for a set period; if it remains inactive longer, it may be reported to the state as unclaimed property.

Question 75: A homeowner wants a revolving line of credit secured by the equity in their house. What product should the teller refer them to?

Home equity line of credit (HELOC) (Correct answer)
Certificate of deposit secured loan
Unsecured credit card
Personal installment loan

Correct answer: Home equity line of credit (HELOC)

A HELOC is a revolving credit line secured by the borrower's home equity.

Question 76: What is 'check kiting'?

Accepting a check with an altered payee name
Exploiting the float between two accounts to fraudulently inflate balances (Correct answer)
Writing a check in a foreign currency
Depositing a check and withdrawing cash simultaneously

Correct answer: Exploiting the float between two accounts to fraudulently inflate balances

Check kiting is a form of fraud where a person exploits processing float by writing checks between accounts with insufficient funds to artificially inflate balances.

Certified Bank Teller (CBT)

The Certified Bank Teller (CBT) certification validates a bank teller's knowledge of teller operations, cash handling, negotiable instruments, account services, banking regulations, and customer service standards. It is a professional credential for front-line banking personnel.

Questions

120 min

Time Limit

70%

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