National Check Professional (NCP) Certification Practice Test

What is a PEA adjustment?

1. A savings bond adjustment requested by the Bureau of the Fiscal Service

2. An adjustment made by any financial institution for customer complaints

3. A transaction related to securities trading

4. A regulation change effective in the current fiscal year

The correct answer is: A savings bond adjustment requested by the Bureau of the Fiscal Service

A PEA adjustment refers specifically to a savings bond adjustment requested by the Bureau of the Fiscal Service. This type of adjustment is typically associated with the reconciliation or correction of issues related to savings bonds, which may include changes in maturity dates, interest rates, or adjustments for lost or stolen bonds. The Bureau of the Fiscal Service is responsible for managing the government’s federal debt and overseeing savings bonds, so any adjustments made in this context are initiated at their request. This concept is distinct from the other options, as they pertain to different areas within financial services. For instance, adjustments made by financial institutions for customer complaints typically relate to service issues rather than government-issued securities. Similarly, transactions related to securities trading focus on the buying and selling of stocks, bonds, and other financial instruments, which do not involve the correction of savings bond records. Lastly, a regulation change effective in the current fiscal year concerns compliance with legal or financial regulatory requirements rather than specific savings bond adjustments. Thus, "A savings bond adjustment requested by the Bureau of the Fiscal Service" accurately captures the essence of a PEA adjustment.