Bank Services

1. To redeem a bond, a customer must hold a bond for at least 12 months, sign a bond, and provide a clear identification.

True

False

2. Money order is guaranteed by bank to be valid up to the amount printed on it.

True

False

3. Cash advance is a loan, for which a customer pays a finance charge and fee.

True

False

4. Bond interest is usually exempt from state, local, and property taxes.

True

False

5. Money orders are easy to duplicate, therefore, teller should pay careful attention especially to maximum amount printed on the money order.

True

False

6. When are traveller's checks most frequently used?

When the administration of customer's bank account is being relocated from one branch to another.

When the bank seat is being relocated.

When customers travel.

7. When are money orders, cashier's checks, traveler's checks, and certified checks most frequently used?

When the customer has no checking account, through which to conduct the transfer.

When a bank runs out of regular checks.

When a customer has too much money on his savings account.

8. Money orders, cashier's checks, traveler's checks, and certified checks are non-negotiable products rarely guaranteed by banks.

True

False

9. What is the advantage of "automatic deduction'' as one of the main types of payment forms?

Customer does not need to authorize any deduction from the account as it happens automatically.

Customer will not be late with check as the payment is automatically taken out of bank account.

Customer does not receive any payment reminders.

10. What does a customer have to submit to purchase bonds?

Name and address.

Name, address, and tax receipt.

Social security number, name, and address.

11. When would a customer typically need cashier's check?

When he/she is in immediate need of sizable cash.

When he/she needs guaranteed funds (e.g., home closing).

When he/she does not know which exact amount he/she will need.

12. What is the extra feature of a debit card that ATM card does not have?

Debit card can be used for purchases.

The amount of purchase is not directly deducted from customer’s checking account, but bills monthly.

There is no extra feature. Both cards have the same functions.

13. What does it mean when savings bonds reach "final maturity"?

Bonds stop earning interest.

Bonds reach their face value.

Bonds enter extension period.

14. What is the so-called "Patriot Bond"?

It is a new type of E bond introduced after 9/11. Funds are raised for antiterrorism.

It is a new type of EE bond introduced after 9/11. Funds are raised for antiterrorism.

It is a new type of I bond introduced after 9/11. Funds are raised for antiterrorism.