DP13 Reg DD Truth in Savings Act

D. A, B, and C are incorrect because the statements do not contain triggering terms.

1. Harold, a teller, just returned from the bank staff meeting where the manager discussed advertising requirements. As he walks back to his teller station he reads the white board where the bank advertises their CD rates. Which statement would Harold consider to contain "triggering terms" under Reg DD requiring additional disclosure? A. Best CDs in town! B. Competitive rates on all CDs! C. Ask us about our 6 month CD! D. 9 month CD at 3.00% APY ID:2DFDFAF7898F458BA1735F73DEF12883

C. A is incorrect because this is not a regulatory requirement. B is incorrect because a bank is not required to pay all checks. D is incorrect because year to date and periodic dollar amounts must be listed for all overdraft fees, not just those for retuning items unpaid.

1. What is one requirement a bank has under Reg DD if it charges fees for overdrafts? A. Place a notice on the ATM that a fee will be charged to non-customers B. Pay all checks C. Bank statements must list the dollar amounts for all fees imposed on the account for returning items unpaid both for the period and year to date D. List only the dollar amounts for all fees imposed on the account for returning items unpaid ID:36EC4062C79A4F68A60DCB41E5AE6771

B. A, C, and D are incorrect because the lack of uniformity in terms among depository institutions made it difficult for a consumer to compare different account offerings.

10. The deregulation of bank products in the early 1980's brought about attention to what scenario that resulted in the passage of the Truth in Savings Act? A. There was a need to stabilize the monetary system and the economy B. The lack of uniformity in terms among depository institutions made it difficult for a consumer to compare different account offerings C. Consumers were concerned about the number of bank failures D. It was difficult for small depositors to determine what was in their accounts ID:32864C3D352D4827B97D83226BB2975F

B. A is incorrect because a bank is not required to pay all checks. C is incorrect because this is not a regulatory requirement. D is incorrect because the bank is entitled to charge fees but those fees must be disclosed.

10. What is one requirement a bank has under Reg DD if it charges fees for overdrafts? A. Pay all checks B. Bank statements must list the dollar amounts for all fees imposed on the account for returning items unpaid both for the period and year to date C. Place a notice on the ATM that a fee will be charged to non-customers D. Refrain from charging fees for any items paid against uncollected funds ID:C7DEA35524194AC3BE4947623DE62456

D. A and C are incorrect because disclosures are required at account opening, not account closing. B is incorrect because all customers must receive notice and disclosures, not just when they open a free account.

10. When must a bank provide Regulation DD notice and disclosures? A. When a customer closes an account, when there is a change in terms, and on the periodic statement B. Only when a customer opens a free account C. When a customer closes an account D. When a customer opens an account, when there is a change in terms, upon request, and on the periodic statement ID:96ACCB3B5511492183AE013147E85F4F

C. A, B, and D are incorrect because if a rate is quoted, the bank employee must also quote the annual percentage yield and must use the term ''annual percentage yield.''

2. Mr. Hightower is interested in a one-year certificate of deposit. In addition to providing the rate, what other disclosure is required? A. No other disclosure is required B. Percent C. Annual percentage yield D. Annual percentage rate ID:F1F7612342504BF1A964BB6E2D3508BA

D. A, B, and C are incorrect because if a rate is quoted the bank employee must also quote the annual percentage yield and must use the term ''annual percentage yield.''

2. Mr. Martin calls to ask about the rate on the bank's 2-year certificate of deposit. In addition to providing the rate, what other disclosure is required? A. Annual percentage rate B. Percent C. No other disclosure is required D. Annual percentage yield ID:44A55783C907465DB0BA5B7DD13BE5CC

B. A is incorrect because safe deposit box fees are not ''transaction fees'' required to be disclosed under Reg DD. C is incorrect because commercial customers are not covered by Reg DD. D is incorrect because a 30-day advance notice is not required when the change is beneficial for the consumer.

2. Which of the following is considered a change in terms under Reg DD requiring 30 days advance notice? A. The bank is raising the annual cost for its safe deposit boxes B. The bank is raising its monthly service charge on its checking accounts from $5 a month to $7 a month C. The bank is changing the fee it charges commercial customers for foreign wire transfers from $35 to $50 D. The bank is lowering its per-item withdrawal fee on money market withdrawals from $5 to $3 ID:2E5632D01D2C4A358CDC345A87675294

A. B, C, and D are incorrect because if a rate is quoted it must be the annual percentage yield and must use the term ''annual percentage yield.''

3. Mrs. Wong asks about the rate on a certificate of deposit. In addition to providing the rate, what other disclosure is required? A. Annual percentage yield B. Percent C. Annual percentage rate D. No other disclosure is required ID:A774693AA57E46D89C1078795763A892

A. B, C, and D are incorrect because they are specific inquiries.

3. Sandy Sires, a bank employee, had four clients present her with different inquiries. Which scenario would be considered a general inquiry? A. Mrs. Lee wants to know if your bank offers CDs B. Mr. Chavez asked for a copy of the Truth in Savings disclosures for a NOW account C. Ms. Smith wanted written information about the terms of a specific account D. Mr. Jackson wanted to know about the minimum balance requirements on a new product the bank is offering ID:79FC8310186C4D15AB53656F46F22CED

A. B, C, and D are incorrect because they are non maintenance/activity fees.

3. The bank cannot advertise an account as ''free'' if any maintenance or activity fee may be imposed on the account. Which item is a maintenance/activity fee as opposed to a non maintenance/activity fee? A. Fees imposed to deposit, withdraw, or transfer funds, including per check or per transaction charges B. Fees for dormant accounts C. Stop payment fees D. Check printing fees ID:E2A5EA2B3D08494B9E447A3CA7CC3F20

A. B is incorrect because disclosures are required at account opening, not account closing. C is incorrect because Regulation DD notice is not required when a customer dies. D is incorrect because Regulation DD notice is required only when there is a change in terms.

3. When must a bank provide Regulation DD notice and disclosures? A. When a customer opens an account, when there is a change in terms, upon request, and on the periodic statement B. When a customer closes an account, when there is a change in terms, and on the periodic statement C. When a customer opens an account, when there is a change in terms, or when a customer dies D. When a customer opens an account, each week to show the terms, and on the periodic statement ID:08474678F7E54114946C3FF5A5717414

A. B, C, and D are incorrect because they are specific inquiries.

4. Jerry Doe, a bank employee, had four different clients present him with different inquiries. Which scenario would be considered a general inquiry and not a specific request for information? A. Mrs. Smith wants to know if your bank offers CDs B. Mr. Hernandez asked for a copy of the Truth in Savings disclosures for a NOW account C. Ms. Jones wanted written information about the terms of a specific account D. Mr. Brown wanted to know about the minimum balance requirements on a new product the bank is offering ID:4B342D8757734A6E8F87A8B0D4F52ED0

D. A is incorrect because this is not a requirement under Reg DD. B is incorrect because the bank is entitled to charge fees but those fees must be disclosed. C is incorrect because this is not a regulatory requirement.

4. What is one requirement a bank has under Reg DD if it charges fees for overdrafts? A. List the number of times ATM transactions are denied B. Refrain from charging fees for any items paid against uncollected funds C. Place a notice on the ATM that a fee will be charged to non-customers D. Bank statements must list the dollar amounts for all fees imposed on the account for returning items unpaid both for the period and year to date ID:C1657C25EB6F406EAD1E1AE5302CBE2E

A. B, C, and D are incorrect because they are specific inquiries.

4. Which scenario is considered a general inquiry and not a specific request for information? A. Mrs. Smith wants to know if your bank offers CDs B. Mr. Hernandez asks for a copy of the Truth in Savings disclosures for a NOW account C. Ms. Jones wants written information about the terms of a specific account D. Mr. Brown wants to know about the minimum balance requirements on a new product the bank is offering ID:68C20C378947442F8E1623B86FEBEF1C

B. A, C, and D are incorrect because TISA applies only to consumer accounts used for personal, family or household purposes and does not cover ''doing business as'' (DBA) accounts, partnerships, or sole proprietorships.

5. The Truth in Savings Act covers certain types of accounts. Which option correctly lists two accounts covered by the Truth in Savings Act? A. Money market account for an individual and a 6-month CD for a business partnership B. Savings account for a husband and wife and a money market account for an individual C. 6-month CD for a business partnership and a time deposit account for a sole proprietorship D. Time deposit account for a sole proprietorship and a savings account for a husband and wife ID:94EA945FAF19493A92B130A6E7282649

C. A is incorrect because safe deposit box fees are not ''transaction fees'' required to be disclosed under Reg DD. B is incorrect because commercial customers are not covered by Reg DD. D is incorrect because a 30-day advance notice is not required when the change is beneficial for the consumer.

5. The bank Marketing department has asked your advice on communicating some changes the bank wants to make that will impact customers. The bank wants to implement these changes as soon as possible. When you review the list, you advise Marketing that all changes except one may be implemented immediately. Which change cannot be implemented immediately and requires a 30 day change in terms notice? A. The bank is raising the annual cost for its safe deposit boxes B. The bank is changing the fee it charges commercial customers for foreign wire transfers from $35 to $50 C. The bank is raising its monthly service charge on its checking accounts from $5 a month to $7 a month D. The bank is lowering its per-item withdrawal fee on money market withdrawals from $5 to $3 ID:CC1352DC41C14138B2166E54CCD9C348

D. A, B and C are incorrect because TISA applies only to consumer accounts used for personal, family or household purposes and does not cover ''doing business as'' (DBA) accounts, partnerships, or sole proprietorships.

5. Which option correctly lists two accounts covered by the Truth in Savings Act? A. Money market account for an individual and a 6-month CD for a business partnership B. 6-month CD for a business partnership and a time deposit account for a sole proprietorship C. Time deposit account for a sole proprietorship and a savings account for a husband and wife D. Savings account for a husband and wife and a money market account for an individual ID:4C77F078BE34481B8FF4AB63A2A653A6

D. A, B, and C are incorrect because the statements do not contain triggering terms.

6. Carol, the branch manager, has asked the new account representative to use a white board to advertise CD rates so that customers will see it during the bank's sales campaign. Which statement would be a "triggering term" under Reg DD requiring additional disclosure? A. Competitive rates on all CDs! B. Ask us about our 6 month CD! C. Best CDs in town! D. 9 month CD at 3.00% APY ID:91E499706F3140118D1381F897704851

A. B, C, and D are incorrect because the Truth in Savings Act applies only to natural persons who open an account for personal, family, or household use.

6. Kim Au is meeting with a number of potential clients later today. To which client should she provide a Truth in Savings account disclosure? A. Richard Moore, IRA B. Mary Monroe, DBA Monroe Consulting Company (a sole proprietorship) C. Acme Manufacturing (a local corporation) D. Hawkins and Rogers (an accounting firm in the form of a partnership) ID:8259DD14B1A14851B2BEC5359493C8E2

B. A, C, and D are incorrect because they are non maintenance/activity fees.

6. Which item is considered a maintenance/activity fee as opposed to a non maintenance/activity fee? A. Check printing fees B. A flat fee, such as a monthly service fee C. Stop payment fees D. Dormancy fees ID:CCA40C91EE454153BCD0B088A72D672D

A. B is incorrect because safe deposit box fees are not ''transaction fees'' required to be disclosed under Reg DD. C is incorrect because commercial customers are not covered by Reg DD. D is incorrect because a 30-day advance notice is not required when the change is beneficial for the consumer.

7. Chip, a new CSR, has been handed a list of changes the bank wants to make to its deposit accounts. Which of the items on this list will require the bank to send a change in terms notice 30 days in advance of the change? A. The bank is raising its monthly service charge on its checking accounts from $5 a month to $7 a month B. The bank is raising the annual cost for its safe deposit boxes C. The bank is changing the fee it charges commercial customers for foreign wire transfers from $35 to $50 D. The bank is lowering its per-item withdrawal fee on money market withdrawals from $5 to $3 ID:353309A5509542079161ECF45E22DC9A

B. A, C, and D are incorrect because the Truth in Savings Act applies only to natural persons who open an account for other than business purposes for personal, family, or household use.

7. Jasper Horne met with four potential customers earlier. Which one received a Truth in Savings account disclosure? A. Acme Manufacturing (a local corporation) B. Richard Moore, IRA C. Hawkins and Rogers (an accounting firm in the form of a partnership) D. Mary Monroe, DBA Monroe Consulting Company (a sole proprietorship) ID:3EC29D5A4F77414EBBF73F3C7ACA3C76

C. A, B, and D are incorrect because the statements do not contain triggering terms.

7. Mary is a teller who has decided to advertise CD rates on a white board at the branch. Which statement would be a "triggering term" under Reg DD requiring additional disclosure? A. Ask us about our great rates! B. Competitive rates on all CDs offered! C. 6 month CD at 5.00% APY D. Best CDs in town! ID:ACD9269409EC46BC927A98DDB2178A8B

A. B, C and D are incorrect because TISA applies only to consumer accounts used for personal, family or household purposes and does not cover ''doing business as'' (DBA) accounts, partnerships, or sole proprietorships.

8. Only certain accounts are covered by the Truth in Savings Act. Which option correctly lists two accounts covered by the Truth in Savings Act? A. Savings account for a husband and wife and a money market account for an individual B. Money market account for an individual and a 6-month CD for a business partnership C. 6-month CD for a business partnership and a time deposit account for a sole proprietorship D. Time deposit account for a sole proprietorship and a savings account for a husband and wife ID:9C5295A226BA48758C4E3C20C878DB5A

D. A, B, and C are incorrect because the lack of uniformity in terms among depository institutions made it difficult for a consumer to compare different account offerings.

8. What was the primary purpose for the enactment of the Truth in Savings Act? A. There was a need to stabilize the monetary system and the economy B. Consumers were concerned about the number of bank failures C. It was difficult for small depositors to determine what was in their accounts D. The lack of uniformity in terms among depository institutions made it difficult for a consumer to compare different account offerings ID:73322EBAA49941678E5A14FF6B6CC80A

C. A, B, and D are incorrect because they are non maintenance/activity fees.

9. If maintenance/activity fees may be imposed on an account, the bank cannot advertise the account as ''free.'' Which item is considered a maintenance/activity fee as opposed to a non maintenance/activity fee? A. Dormancy fees B. Stop payment fees C. Minimum balance fees D. Check printing fees ID:64F9D1516E5241DAB0A7D01F8720DADA

B. A, C, and D are incorrect because the Truth in Savings Act applies only to natural persons who open an account for personal, family, or household use.

9. To which potential customer would Central Bank have to make available a Truth in Savings account disclosure? A. Mary Monroe, DBA Monroe Consulting Company (a sole proprietorship) B. Richard Moore, IRA C. Acme Manufacturing (a local corporation) D. Hawkins and Rogers (an accounting firm in the form of a partnership) ID:34655EA9125749C485F26D09C895A3D3

A. B, C, and D are incorrect because the lack of uniformity in terms among depository institutions made it difficult for a consumer to compare different account offerings.

9. What was the reason for passing the Truth in Savings Act? A. The lack of uniformity in terms among depository institutions made it difficult for a consumer to compare different account offerings B. There was a need to stabilize the monetary system and the economy C. Consumers were concerned about the number of bank failures D. It was difficult for small depositors to determine what was in their accounts ID:1DD4D978E29F4ED89C37F97A14C34B15

C. A is incorrect because disclosures are required at account opening, not account closing. B is incorrect because Regulation DD notice is not required when a customer dies. D is incorrect because all customers must receive notice and disclosures, not just when they open a free account.

9. When must a bank provide Regulation DD notice and disclosures? A. When a customer closes an account B. When a customer opens an account, when there is a change in terms, or when a customer dies C. When a customer opens an account, when there is a change in terms, upon request, and on the periodic statement D. Only when a customer opens a free account ID:3E5A8F6B220B46ADBF7E5539DA8FDE03