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Questions and Answers
What does TIN stand for in tax terminology?
What does TIN stand for in tax terminology?
- Taxpayer Identification Number (correct)
- Treasury Identification Number
- Tax Identification Notification
- Total Income Number
How many digits are in a Social Security Number (SSN)?
How many digits are in a Social Security Number (SSN)?
- Eight
- Ten
- Nine (correct)
- Seven
Which format correctly represents an Employer Identification Number (EIN)?
Which format correctly represents an Employer Identification Number (EIN)?
- 123-456789
- 123456789
- 123456-789
- 12-3456789 (correct)
What is the purpose of a verification service in the context of TreasuryDirect?
What is the purpose of a verification service in the context of TreasuryDirect?
What does the term 'transfer' refer to in the context provided?
What does the term 'transfer' refer to in the context provided?
Who does 'we, us, or our' refer to in this context?
Who does 'we, us, or our' refer to in this context?
Which of the following statements about hyphens in SSNs is true?
Which of the following statements about hyphens in SSNs is true?
What is the function of a voluntary representative as defined in the content?
What is the function of a voluntary representative as defined in the content?
What is the purpose of a payroll zero-percent certificate of indebtedness?
What is the purpose of a payroll zero-percent certificate of indebtedness?
Which statement correctly defines the term 'primary account'?
Which statement correctly defines the term 'primary account'?
Who is designated as the 'primary owner' of a security in TreasuryDirect?
Who is designated as the 'primary owner' of a security in TreasuryDirect?
What does the term 'principal amount' refer to?
What does the term 'principal amount' refer to?
What does redemption of a savings bond entail?
What does redemption of a savings bond entail?
What does 'redemption value' signify?
What does 'redemption value' signify?
Who qualifies as a 'recipient' in the context of certificates of indebtedness?
Who qualifies as a 'recipient' in the context of certificates of indebtedness?
In the context of securities, what does 'registration' imply?
In the context of securities, what does 'registration' imply?
Which of the following roles is specifically excluded from the definition of 'executive officer'?
Which of the following roles is specifically excluded from the definition of 'executive officer'?
What does the term 'indenture' refer to?
What does the term 'indenture' refer to?
Which term refers to the application process outlined in section 77eee or section 77ggg?
Which term refers to the application process outlined in section 77eee or section 77ggg?
In the context of the definitions provided, what is meant by 'indenture to be qualified'?
In the context of the definitions provided, what is meant by 'indenture to be qualified'?
Who does the term 'indenture trustee' refer to?
Who does the term 'indenture trustee' refer to?
Which of the following is NOT included in the definition of 'executive officer'?
Which of the following is NOT included in the definition of 'executive officer'?
What type of agreement does the term 'indenture' NOT encompass?
What type of agreement does the term 'indenture' NOT encompass?
What is included in the term 'indenture security'?
What is included in the term 'indenture security'?
Who is responsible for opening an account for a minor?
Who is responsible for opening an account for a minor?
What must an entity account manager certify before opening an account?
What must an entity account manager certify before opening an account?
What is NOT considered a transfer as defined in the context provided?
What is NOT considered a transfer as defined in the context provided?
Which of these actions can an entity account manager perform after establishing an account?
Which of these actions can an entity account manager perform after establishing an account?
Which requirement must a custodian fulfill to open an account for a minor?
Which requirement must a custodian fulfill to open an account for a minor?
In what scenario is it permitted for a minor to purchase securities?
In what scenario is it permitted for a minor to purchase securities?
What defines a transfer of a Treasury security?
What defines a transfer of a Treasury security?
What role does a custodian play regarding a minor's account?
What role does a custodian play regarding a minor's account?
What does the final maturity of a savings bond indicate?
What does the final maturity of a savings bond indicate?
Which of the following statements about Series EE and Series I savings bonds is correct?
Which of the following statements about Series EE and Series I savings bonds is correct?
What is a 'gift' in the context of Treasury securities?
What is a 'gift' in the context of Treasury securities?
Which individual is classified as legally incompetent?
Which individual is classified as legally incompetent?
What does 'linked account' refer to?
What does 'linked account' refer to?
What is the role of a legal guardian for a minor?
What is the role of a legal guardian for a minor?
Which of the following best describes a legal representative?
Which of the following best describes a legal representative?
What does the interest on a savings bond represent?
What does the interest on a savings bond represent?
Study Notes
Entity Account Management
- An entity account manager must create an account for an entity and verify their identity.
- Authorization is required from the entity account manager to ensure they can act independently on the entity's behalf.
Transfer Defined
- A transfer involves moving a Treasury security or part of it between accounts within TreasuryDirect or between systems.
- Transfers can occur between TreasuryDirect accounts and commercial book-entry systems, as well as from Legacy Treasury Direct to TreasuryDirect accounts.
Accounts for Minors
- Minors cannot directly purchase securities; accounts must be opened by a parent or primary financial supporter.
- The individual opening the account is called the custodian and serves as a fiduciary for the minor.
- The custodian must have an existing primary TreasuryDirect account to manage the minor's linked account.
Maturity of Savings Bonds
- Final maturity is the date when a savings bond stops accruing interest, typically 20 years for Series EE and I bonds, with an additional 10 years for extended maturity.
Definitions of Key Terms
- Financial institution: Defined under 12 U.S.C. 461 (b)(1)(A)(i)–(vi).
- Gift: A Treasury security bought for or sent to someone without monetary compensation.
- Incompetent individual: An individual declared legally incapable of managing their financial affairs by a court.
- Legal representative: A court-appointed representative authorized to manage the affairs of a decedent.
- Primary account: The initial account established within TreasuryDirect that allows access to linked accounts.
Additional Terminology
- Principal amount: The original investment amount excluding earned interest.
- Redemption: The process of cashing in a savings bond for principal and interest.
- Verification: The process to confirm the identity of a TreasuryDirect account applicant using various methods.
- Voluntary representative: A person authorized by the Treasury to handle the decedent's securities.
Corporate Governance
- Executive officer: Includes high-ranking officials like the president, vice presidents, and trust officers but excludes the board chairman.
Indenture and Application
- Indenture: A legal agreement detailing the terms of securities issued or to be issued.
- Application for qualification: A submitted request for compliance with specific regulatory requirements, including accompanying documents.
This compilation provides a clear overview of essential concepts related to entity management, securities, and relevant definitions within the context of TreasuryDirect and associated regulations.
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Description
This quiz covers the responsibilities of an entity account manager and the process of verifying identities for account setup. It explores the definition of a transfer as per regulatory guidelines. Test your knowledge on account management principles and practices.
