BSCS Officer Cash Exam key terms

The maximum amount of currency a teller may hold at a workstation at any time. Excess cash is transferred to the vault to limit loss from robbery, error, or internal theft.

A physical tally of currency and coin in a drawer or vault, compared against the recorded book balance. Differences are investigated as overages or shortages and documented on a signed count sheet.

The gap between counted cash and the expected book amount. An overage means more cash than recorded; a shortage means less. Both require immediate reporting, documentation, and root-cause review.

A safeguard requiring two authorized employees to act together, such as opening the vault or handling large transfers, so no single person can access or move high-value assets alone.

Responsibility for safeguarding the bank's main cash reserve, including controlled access, joint opening, logging of entries, and periodic surprise counts by independent officers or auditors.

Splitting tasks so that one employee does not both handle an asset and record or approve its movement. This reduces fraud risk by requiring collusion to conceal a loss.

The process of matching the bank's internal cash records to the statement issued by the central bank or correspondent, explaining timing differences, charges, and errors until both balances agree.

Transactions recorded by one party but not yet by the other, such as uncleared cheques or deposits in transit. They explain most temporary differences in a bank reconciliation.

A listing of all ledger account balances at a date, with total debits expected to equal total credits. It detects arithmetic errors before financial statements are prepared.

An accounting method in which every transaction records equal debits and credits across at least two accounts, keeping the accounting equation of assets, liabilities, and equity in balance.

The master record containing all accounts and their posted entries. It supports preparation of the trial balance and financial statements and is the source for audit testing.

The mandatory process of identifying a customer, verifying identity with reliable documents, and understanding the purpose of the account before and during the business relationship.

Ongoing assessment of a customer's identity, activity, and risk profile. It includes initial verification, periodic updates, and scrutiny of transactions consistent with the stated purpose of the account.

Additional checks applied to higher-risk customers, such as politically exposed persons or clients in high-risk jurisdictions. It may include source-of-funds evidence, senior approval, and closer monitoring.

The natural person who ultimately owns or controls an account or legal entity, even if a nominee or company appears as the named holder. Identifying them is a core anti-money-laundering requirement.

A person entrusted with prominent public functions, plus close family and associates. Their accounts are treated as higher risk and require enhanced scrutiny and senior management approval.

A confidential filing to the financial intelligence unit when a transaction appears unusual or has no apparent lawful purpose, regardless of amount. Tipping off the customer about the report is prohibited.

A mandatory report filed for cash transactions above a set threshold, capturing the customer's identity and the nature of the transaction. It creates a paper trail for later investigation.

Deliberately splitting cash transactions into smaller amounts to stay below reporting thresholds. It is itself a criminal offence and a common trigger for a suspicious transaction report.

The process of disguising the origin of criminal proceeds through placement, layering, and integration so the funds appear legitimate. Banks are the primary gatekeepers against it.

An entity with no real operations or assets, often used to obscure ownership or move funds. Banks must look through such structures to identify the true beneficial owner.

The interbank process by which a deposited cheque is presented to the paying bank, verified for funds and signature, and settled. Returned cheques reverse the provisional credit given at deposit.

A customer instruction that prevents a specific cheque from being paid. The bank records the cheque number, amount, and date and blocks payment if the item is presented.

A cheque the paying bank refuses to pay, commonly for insufficient funds, a signature mismatch, a stale date, or a stop instruction. The reason must be recorded and communicated.

A written document promising or ordering payment of a sum of money, transferable by delivery or endorsement. Cheques, drafts, and promissory notes are common examples in banking.

A signature on the back of a negotiable instrument that transfers rights to another party or authorizes collection. The type of endorsement affects who may further negotiate the item.

The legal obligation not to disclose customer account information except where permitted by law, consent, public duty, or the bank's own legitimate interest in legal proceedings.

The statute establishing obligations to identify customers, keep records, report suspicious and threshold transactions, and freeze assets, enforced through a national financial intelligence unit and supervisory penalties.

Interest calculated only on the original principal, using the formula principal times rate times time. It does not compound, so the annual interest amount stays constant.

Interest earned on both the principal and previously accrued interest. More frequent compounding at the same nominal rate produces a higher effective yield over time.

The current worth of a future cash amount after discounting at a given rate. It lets a banker compare payments received at different dates on a common basis.

A comparison of two quantities and a statement that two ratios are equal. These tools solve problems on profit sharing, currency exchange, and allocation of amounts among parties.

A fraction expressed out of one hundred, used to compute markups, discounts, commissions, and growth. Converting between fractions, decimals, and percentages is a frequent exam skill.

The sum of a set of values divided by the number of values. Averages summarize data and appear in questions on daily balances, transaction volumes, and performance measures.

Reading tables, charts, and graphs to extract figures and answer questions requiring calculation or comparison. Accuracy depends on identifying units, totals, and the correct base.

Drawing valid conclusions from stated premises, including syllogisms, seating arrangements, and series completion. Correct answers follow necessarily from the given information, not from assumptions.

The standard structure of formal correspondence: sender and recipient details, date, subject line, salutation, body paragraphs, complimentary close, and signature, written in clear professional tone.

A sentence construction in which the subject performs the action, as in the officer approved the loan. It is preferred in business writing because it is direct and assigns responsibility clearly.

The country's central bank, responsible for monetary policy, currency issuance, banking supervision, and payment systems. It also regulates anti-money-laundering compliance for banks.

Central bank actions managing money supply and interest rates to control inflation and support growth. The policy rate influences deposit and lending rates across the banking system.

A sustained rise in the general price level, reducing purchasing power. Measured by indices such as the consumer price index, it guides interest rate decisions and savings behaviour.

Centralized software that processes deposits, withdrawals, loans, and customer records across all branches in real time. It links teller terminals to a single shared customer database.

Recording a financial entry in the core system so balances update immediately. Each posting should be validated, authorized where required, and traceable to a source document.

A chronological record of system activity showing who did what and when. It supports investigation of errors and fraud and is essential for regulatory and internal audit review.

A login control requiring two independent proofs of identity, such as a password plus a one-time code. It reduces the risk of unauthorized access to banking systems and customer accounts.