Two Tellers of a Tenth National Bank Branch Colluded to Embezzle

question 6

Multiple Choice

Two tellers of a Tenth National Bank branch colluded to embezzle $40,000 over a six-month period.State bank examiners detected the embezzlement during a routine bank examination.Tenth National purchased a financial institution bond.Under which of the following insuring agreements is this loss covered?

• A)Insuring Agreement A-Fidelity
• B)Insuring Agreement B-On Premises
• C)Insuring Agreement C-In Transit
• D)Insuring Agreement D-Forgery or Alteration

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged in an orderly transaction between knowledgeable, willing parties in an arm's length transaction.

Technical Services

Specialist assistance provided by a business or individual in areas such as IT, engineering, or scientific research.

Machinery

Machines or machine systems collectively, which are used in industrial or manufacturing processes and applications.