Certified Financial Management Specialist Practice Exam

What function do safe deposit boxes serve in financial institutions?

1. Providing investment advice

2. Effective risk management

3. Secure storage for valuables

4. Facilitating fund flow between clients and markets

The correct answer is: Secure storage for valuables

Safe deposit boxes serve the essential function of secure storage for valuables. Financial institutions offer this service to protect items such as jewelry, important documents, and other valuable possessions from theft, loss, or damage. The boxes are housed in a secure area within the bank, often accessible only to the owner and under strict security measures, which may include surveillance cameras and limited access hours. In addition to their physical security, safe deposit boxes provide peace of mind to customers, knowing that their most precious items are safeguarded in a controlled environment, away from risks that might occur in their homes or other less secure locations. This function highlights the bank's role in asset protection, distinct from activities related to investment advice, risk management, or facilitating fund flow.