Check Acceptance, Endorsement, and Deposit Processing

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1. 1

   What is the primary function of a check?

   A To guarantee that the payee has received cash B To instruct a financial institution to pay a specified amount from an account C To transfer ownership of the payer's bank account
2. 2

   In the illustrated check, what information belongs on the line indicated by the arrow?

   

   A The name of the person or organization receiving payment B The bank's routing number C The drawer's signature
3. 3

   Which endorsement consists only of the payee's signature and can make a check payable to the bearer?

   A Restrictive endorsement B Special endorsement C Blank endorsement
4. 4

   What type of endorsement is shown on the back of this check?

   

   A Blank endorsement B Restrictive endorsement C Special endorsement
5. 5

   A customer's identification name differs slightly from the payee name on a check. What is the most appropriate teller response?

   A Follow institutional policy and obtain any required endorsements and identification B Rewrite the payee name on the front of the check C Ignore the difference whenever the check amount is small
6. 6

   Which part of the illustrated check is designed for automated reading during check processing?

   

   A The memo line B The payee line C The MICR line
7. 7

   What does the routing number on a check primarily identify?

   A The individual customer who wrote the check B The financial institution associated with the account C The purpose for which the check was issued
8. 8

   Under common U.S. banking practice, how is a personal check dated more than six months earlier generally classified?

   A Stale-dated and subject to the financial institution's acceptance policy B Automatically converted into a cashier's check C Valid indefinitely and requiring no additional review
9. 9

   The deposit slip shows checks of $125.40, $80.00, and $44.60, with no cash and no cash back. What should the total deposit be?

   

   A $205.40 B $249.40 C $250.00
10. 10

    A teller adds the enclosed checks and finds that their total does not match the amount written on the deposit slip. What should the teller do?

    A Process the amount on the slip without noting the difference B Recalculate and resolve the discrepancy according to procedure before completing the deposit C Choose the larger total to avoid under-crediting the customer
11. 11

    The check shown is presented on September 5, but it is dated September 20. How should it be classified?

    

    A Postdated B Stale-dated C Undated
12. 12

    A system alert shows an active stop-payment order on a check presented at the drawee bank. What should the teller do?

    A Cash it if the presenter supplies identification B Remove the alert after asking the presenter for an explanation C Do not complete payment and follow the bank's escalation procedure
13. 13

    Which area is highlighted on the back of the illustrated check?

    

    A The area reserved for the issuing bank's routing information B The area intended for the payee's endorsement C The area where the drawer rewrites the payment amount
14. 14

    A check payable to ABC Services LLC is presented for deposit into an employee's personal account. What is the appropriate response?

    A Follow policy and require deposit to an appropriately titled account unless an authorized exception is verified B Deposit it automatically because the employee works for the company C Replace the company name with the employee's name
15. 15

    The illustrated check shows $1,250.00 in the numeric box but states 'One thousand two hundred dollars' on the written amount line. Which amount generally controls?

    

    A $1,250.00 because the numeric box always controls B The average of the two amounts C $1,200.00 because words generally prevail over conflicting figures
16. 16

    A check is payable to 'Avery Chen and Morgan Diaz.' Who ordinarily must endorse it?

    A Only the first named payee B Both named payees C Either payee, without regard to institutional policy
17. 17

    The check was originally payable to Maria. On the back, Maria wrote 'Pay to Lee,' signed it, and Lee then signed below. What does this endorsement chain indicate?

    

    A Maria attempted to transfer the check to Lee through a special endorsement B Maria restricted the check to her own account only C Lee became the drawer of the check
18. 18

    A physical check bears the restrictive endorsement 'For mobile deposit only at Bank X.' What is the safest response when it is presented for an in-person deposit at another bank?

    A Accept it normally because endorsements never limit processing B Cross out the restriction and replace it with the new bank's name C Refer to institutional policy and decline or escalate because the restriction conflicts with the presentation
19. 19

    When a deposited check is subject to a funds-availability hold, what should the teller communicate?

    A That the check has already been finally paid B The applicable availability date and any required hold notice C That holds can be removed whenever the customer requests it
20. 20

    What normally happens if a deposited check is later returned unpaid for insufficient funds?

    A The provisional credit may be reversed and applicable fees or notices may follow B The bank must permanently absorb the amount C The check automatically becomes legal tender