General Deposits

Question 1

Reg D requires that each bank maintain reserves against:

Answer 1

its deposits and eurocurrency liabilities

Question 2

Reg D requires that banks file a report of deposits with the federal reserve bank located:

Answer 2

in the district where the institution is located

Question 3

Institutions must report deposits to the federal reserve on what form?

Answer 3

Form FR 2900

Question 4

Required bank reserves may be held:

Answer 4

* in vault cash

* in a balance maintained with the federal reserve

* in a pass through account maintained at another institution

Question 5

Reserves may be reported either:

Answer 5

weekly or quarterly

Question 6

Reserves reported weekly must be computed:

Answer 6

on daily average balances of deposits during the computation period

Question 7

Reserves reported quarterly must be computed:

Answer 7

on the basis of the bank’s average daily balance during a seven day computation period that begins on the third Tuesday of March, June, Sept, and Dec

Question 8

The Federal Reserve Banks will pay interest on required reserve balances and excess balances at rates:

Answer 8

determined by the Federal Reserve Board from time to time

Question 9

If certain requirements are met, the Federal Reserve Board may impose a supplemental reserve requirement equal to:

Answer 9

not more than 4% of total transaction accounts

Question 10

If supplemental reserve requirements are in effect for more than 1 year, the Federal Reserve Board must:

Answer 10

send a report to Congress stating the need for continuing the requirement

Question 11

Who is ultimately responsible for the risk management of RDC activities?

Answer 11

the Board of Directors

Question 12

The Federal Reserve Boards interpretations state that the words not negotiable and not assignable are not sufficient to:

Answer 12

make the deposit nontransferable

Question 13

Regulation D states that institutions must have systems to monitor transfers and procedures to contact customers who exceed the established limits on more than an occasional basis. The Fed’s staff has applied a general rule that an institution may continue to consider an account an MMDA even if there are excess transfers so long as:

Answer 13

those excess transfers are not the result of an attempt to evade the transfer limits, and if the excess transfers occur in not more than three months during any 12 month period

Question 14

T or F

The nontransferable nature of a time deposit is not affected by its pledge as collateral on a loan, by transactions relating to the death, marriage, divorce, or incompetency of the depositor, or by transactions relating to attachment or other operations of law.

Answer 14

TRUE

Question 15

T or F

ATM transactions are included in the transaction limits established by Reg D?

Answer 15

FALSE

ATM transactions are specifically excluded from the types of transactions that must be counted against the six transaction limit.

Question 16

Reg D mandates an early withdrawal penalty on time deposits of:

Answer 16

at least 6 days simple interest on withdrawals made within 7 days of opening or renewal

Question 17

Reg D limits the number of transactions permitted on non transaction account to:

Answer 17

No more than 6 preauthorized transfers or withdrawals per month or statement cycle (whichever is longer)

Question 18

Reg D requires that banks monitor transaction limits and address accounts that have ‘more than occasional’ violations. What is ‘more than occasional’?

Answer 18

More than three times in one year

Question 19

If a customer has more than occasional transaction limit violations what must a bank do?

Answer 19

either close or convert the account