Banks Have Responded to New Regulations Resulting from the Dodd-Frank

question 86

Multiple Choice

Banks have responded to new regulations resulting from the Dodd-Frank Act in all of the following ways EXCEPT:

• A)raising minimum balances on free checking accounts
• B)closing branches in low-income neighborhoods
• C)raising overdraft fees
• D)increased marketing of securities and financial advice to high-income customers

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Definitions:

Checks Cleared

The process by which banks verify and process the transfer of funds from the check writer's account to the recipient's account.

Bank Reconciliation

Bank reconciliation is the process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement.

Outstanding Checks

Refers to checks that have been written and recorded in the accounting records but have not yet cleared the bank.

NSF Check

A check that a bank returns without honoring because the account on which it was drawn does not have sufficient funds.