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The manager of Main Street branch calls and relates the following information: John Smith purchased a cashier's check for $1,000 cash at 10:00 a.m. on Tuesday. At 11:30 a.m. Mr. Smith returned and purchased a cashier's check for $2,500 cash and deposited traveler's checks totaling $9,000 into his checking account. At 4:00 p.m. Mr. Smith returned and deposited $8,000 cash into his checking account. This deposit was after normal banking hours, so it was recorded as of Wednesday's business date. What action should the bank take?
Suggested Answer: D
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36 comments · newest first
AM
Amalia
10 months ago
Definitely option C, those amounts are too high to ignore!
GE
Georgene
11 months ago
Not sure about that, seems like they should report something.
WI
Wilda
11 months ago
Wait, but the total cash adds up to more than $10k!
JA
Janae
11 months ago
I agree, option A makes sense here.
PA
Patria
11 months ago
None, no single cash transaction over $10k.
FR
Frank
12 months ago
I’m leaning towards option C because the total of the cashier's checks and traveler's checks seems to exceed the $3,000 limit, but I’m not entirely sure if the cash deposit affects that.
BO
Bok
12 months ago
I feel like the $3,000 threshold for the monetary instrument sales log is relevant here, but I'm confused about whether the total cash deposits count towards that.
VA
Valentine
12 months ago
I think we practiced a similar question where we had to file a CTR for transactions that added up to over $10,000, but I can't recall the exact thresholds for the monetary instrument sales log.
PE
Pearly
1 year ago
I remember something about cash transactions needing to be reported if they exceed $10,000, but I'm not sure how that applies here since none of them do.
BR
Bronwyn
1 year ago
I'm pretty confident the answer is C. The total of the monetary instrument sales (cashier's checks and traveler's checks) exceeds the $3,000 threshold, so the bank needs to record those transactions on the log.
AL
Alishia
1 year ago
I'm a bit confused here. The question mentions the $8,000 deposit being after normal banking hours, so does that change anything? I'm not sure if that affects the reporting requirements.
SH
Sherman
1 year ago
Okay, let's see. The key seems to be that the total of the cash transactions exceeds $10,000, even though no single one does. I think the answer is B - file a Currency Transaction Report.
EL
Elenore
1 year ago
Hmm, this is a tricky one. I'll need to carefully review the details and think through the regulations around cash transactions and reporting requirements.
EL
Ellsworth
1 year ago
I think Option A is the way to go here. Finding or developing a simulator that can mimic the network interaction of 1000 devices seems like the most practical solution given the budget and device constraints. It's the best way to test the application without needing the full set of physical devices.
AR
Arthur
2 years ago
Option C seems like the way to go. I mean, who keeps track of all these thresholds anyway? The bank should just log everything to be safe. *laughs*
CA
Carylon
2 years ago
It's important for the bank to keep track of all transactions to prevent any potential issues.
TE
Tequila
2 years ago
I think option C is the most appropriate action to take in this situation.
CA
Cassi
2 years ago
Yeah, it's always best to follow the rules and regulations set by the bank.
HI
Hillary
2 years ago
I agree, it's better to be safe than sorry when it comes to these things.
HU
Hubert
2 years ago
This question is a real head-scratcher. I'm just glad I don't have to deal with these banking regulations on a daily basis. *chuckles*
KI
Kirby
2 years ago
C) Record the $1,000, $2,500, and $9,000 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold
WI
William
2 years ago
B) File a Currency Transaction Report (CTR) for $11,500
TR
Tracey
2 years ago
A) None, because no single cash transaction exceeded $10,000
OW
Owen
2 years ago
Hmm, I think D is the right answer. The bank should only record the $1,000 and $2,500 transactions on the monetary instrument sales log.
SH
Shawna
2 years ago
I'm not sure, but I think option B is the correct action to take.
EL
Elenor
2 years ago
I'm pretty sure the answer is B. A Currency Transaction Report (CTR) should be filed for the $11,500 total.
BA
Basilia
2 years ago
C) Record the $1,000, $2,500, and $9,000 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold
BO
Bok
2 years ago
I agree, the bank should file a CTR for the $11,500 total.
EL
Elden
2 years ago
B) File a Currency Transaction Report (CTR) for $11,500
RO
Roslyn
2 years ago
A) None, because no single cash transaction exceeded $10,000
SH
Sharan
2 years ago
I agree with Tijuana, the total amount exceeds the threshold so a report should be filed.
ER
Erinn
2 years ago
The correct answer is C. The total of the transactions exceeds the $3,000 threshold, so the bank should record the $1,000, $2,500, and $9,000 transactions on the monetary instrument sales log.
CO
Corazon
2 years ago
C) Record the $1,000, $2,500, and $9,000 transactions on the bank's monetary instrument sales log because the total exceeds the $3,000 threshold
NO
Noble
2 years ago
B) File a Currency Transaction Report (CTR) for $11,500
AU
Audry
2 years ago
A) None, because no single cash transaction exceeded $10,000
TI
Tijuana
2 years ago
I think the bank should file a Currency Transaction Report for $11,500.