Answer to Question #192667 in Management for Rohith

Question

A bank employee decides to resign in order to change profession and set up her own restaurant business. The employee has a mortgage as well as a savings account in the bank. After some thought, she decides to keep the mortgage but close the savings account and receive its funds in cash. After the employee has left the bank and her savings account has been closed, indicate whether each of the following statements is true or false. Briefly justify your answers. (i) The bank’s Mortgage Loan Origination application will have been updated. (ii) The bank’s Central CIF will have been updated. (iii) The bank’s Deposits Processing application will have been updated. (iv) The bank’s General Ledger application will have been updated. (v) The bank’s Human Resources Management System application will have been updated.

Answer 1

(I) The bank's Mortgage Loan Origination application will have been updated.

The statement is true because a debtor will have to deliver certain earnings, credit, asset, and employment data to a stated bank or creditor to pledge the guaranteeing of the loan application.

(ii) The bank's Central CIF will have been updated. This statement is true since CIF stands for Customer Information File, which is allocated to every consumer. The CBI CIF number is an 11 digits unique number. The data will have been updated to include her change in occupation. 

(iii) The bank's Deposits Processing application will have been updated. The statement is true because the objective of this procedure is to determine the dissimilarities between an entity's financial records for a cash account to the consistent data on a bank statement and record changes to the financial records as applicable. 

(iv) The bank's General Ledger application will have been updated. This statement is false since General Ledger (GL) records all former transactions of a business, prearranged by accounts. General Ledger (GL) accounts contain all debit and credit transactions affecting them.

(v) The bank's Human Resources Management System application will have been updated. This statement is true because the bank will hire a new employee to fill her vacant position. Her data will be archived and replaced with the data of the new employee.