Who has the authority to approve transactions in a bank?

The correct answer indicates that only those with approval limits have the authority to approve transactions in a bank. This is important for maintaining security and minimizing risk within financial institutions. Individuals in a bank, such as tellers and clerks, typically have specific roles that involve handling transactions but do not have the authority to authorize transactions beyond a certain amount.

Approval limits are set to create a structured and hierarchical system where higher-level employees, such as supervisors or managers, have increased authority based on their experience and oversight responsibilities. This system helps prevent fraud, errors, and misuse of funds by ensuring that there are checks and balances in place when it comes to approving larger or more complex transactions. Thus, only those individuals who have been given appropriate approval limits, based on their roles and responsibilities within the bank, can authorize transactions, ensuring that all actions are carefully regulated and monitored.