SIE (Securities Industry Essentials) Practice Exam

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Which of the following actions is required when a firm receives cash in excess of $10,000 from one customer in one business day?

File a Currency Transaction Report (CTR)
Immediately return the excess to the customer
Deposit the full amount into an interest-bearing account
Notify the local police department

The correct answer is: File a Currency Transaction Report (CTR)

When a firm receives cash in excess of $10,000 from one customer in one business day, it is required by federal law to file a Currency Transaction Report (CTR) with the Financial Crimes Enforcement Network (FinCEN). This reporting ensures the government is aware of large cash transactions and helps prevent money laundering and other financial crimes. Returning the excess cash to the customer (B) is not required, but may be an option for the business. Depositing the full amount into an interest-bearing account (C) is not required and may not be practical depending on the nature of the business. Notifying the local police department (D) is also not required in this situation.