APRP UPDATED EXAM SCRIPT QUESTIONS AND ANSWERS
GRADED A+
✔✔Corresponding Bank - ✔✔Private depository institution, Bankers Bank or Federal
Reserve Bank providing clearing or settlement services to a paying Bank or Bank of
First Deposit.
✔✔Clearing House - ✔✔A voluntary association of depository institutions that facilitate
the clearing of checks or electronic items through the direct exchange of funds between
members.
✔✔Payor (Check Writer, Maker or Drawer) - ✔✔The party obligated to pay on a check
✔✔Bank of First Deposit (Payee's Depository Financial Institution) - ✔✔The first bank to
which a check is deposited or transferred.
✔✔Payee - ✔✔The party to whom a check is made payable
✔✔Paying Bank (Payor's Depository Financial Institution) - ✔✔Financial institution
identified by the routing number encoded on the MICR line of the check.
✔✔POS/ATM/Credit Card Network - ✔✔Network which provides switching facilities for
the routing of credit, debit and ATM card transactions between Acquirers and Card
Issuers.
✔✔Cardholder - ✔✔A person or entity that is issued a credit or debit account that is
accessed through the use of a card
✔✔Acquirer/Processor (Merchant Bank or Merchant Processor) - ✔✔The financial
institution that contracts with a merchant to initiate payment requests to a card
association or company in the context of credit and debit card payments.
✔✔Card Issuer - ✔✔An entity that issues a credit or debit card to the cardholder
✔✔Third -Party Sender - ✔✔A third party that provides ACH services to the Originator,
and, in that capacity, acts as an intermediary between the Originator and ODFI
✔✔Third-Party Service Provider - ✔✔A third party that processes ACH files and/or
entries on behalf of financial institutions and/or Originators
✔✔ACH Operator - ✔✔The central clearing facility for ACH transactions
✔✔Receiving Depository Financial Institution (RDFI) - ✔✔A financial institution that
receives ACH entries from ACH Operator and post entries to accounts of its depositors.
, ✔✔Originating Depository Financial Institution (ODFI) - ✔✔A financial institution that
receives payment instructions from Originators and forwards the entry to the ACH
Operator.
✔✔Receiver - ✔✔an individual or company that has authorized an Originator to initiate
an ACH entry to their account with the RDFI.
✔✔Originator - ✔✔A company or individual that has been authorized by the Receiver to
initiate either a credit or debit ACH entry to their account
✔✔Blockchain - ✔✔Uses algorithms to enable transactions to be aggregated in blocks,
which are added to a chain of existing blocks using a cryptographic signature.
✔✔Distributed Ledger Technology (DLT) - ✔✔A type of database that is consensually
shared and synchronized across nodes in a network spread across multiple sides,
institutions or geographies.
✔✔International Organization for Standardization (ISO) - ✔✔An international standard-
setting body composed of representatives from various national standards
organizations.
✔✔Value-added network (VAN) - ✔✔A hosted service offering that acts as an
intermediary between business partners to transmit data (business documents).
✔✔Electronic Data Interchange (EDI) - ✔✔the computer-to-computer exchange of
business documents and payment related information in standard electronic format
between business partners.
✔✔Credit Analysis - ✔✔Method used to calculate the creditworthiness of an individual
or business.
✔✔Procedures - ✔✔Defines the manner in which an organization will proceed, perform
or affect something to accomplish the objectives of a policy.
✔✔Policy - ✔✔Defines the course of action adopted for the sake of expediency and
facilitation of objectives.
✔✔Shareholders - ✔✔Group of individuals that may elect directors of an organization,
including CEO and CFO, and benefit through dividends nor share buybacks.
✔✔Senior Management Team(Executive Management, Management Team) -
✔✔Group of individuals at the highest-level of management of an organization who
have the day to day tasks of managing the organization.
GRADED A+
✔✔Corresponding Bank - ✔✔Private depository institution, Bankers Bank or Federal
Reserve Bank providing clearing or settlement services to a paying Bank or Bank of
First Deposit.
✔✔Clearing House - ✔✔A voluntary association of depository institutions that facilitate
the clearing of checks or electronic items through the direct exchange of funds between
members.
✔✔Payor (Check Writer, Maker or Drawer) - ✔✔The party obligated to pay on a check
✔✔Bank of First Deposit (Payee's Depository Financial Institution) - ✔✔The first bank to
which a check is deposited or transferred.
✔✔Payee - ✔✔The party to whom a check is made payable
✔✔Paying Bank (Payor's Depository Financial Institution) - ✔✔Financial institution
identified by the routing number encoded on the MICR line of the check.
✔✔POS/ATM/Credit Card Network - ✔✔Network which provides switching facilities for
the routing of credit, debit and ATM card transactions between Acquirers and Card
Issuers.
✔✔Cardholder - ✔✔A person or entity that is issued a credit or debit account that is
accessed through the use of a card
✔✔Acquirer/Processor (Merchant Bank or Merchant Processor) - ✔✔The financial
institution that contracts with a merchant to initiate payment requests to a card
association or company in the context of credit and debit card payments.
✔✔Card Issuer - ✔✔An entity that issues a credit or debit card to the cardholder
✔✔Third -Party Sender - ✔✔A third party that provides ACH services to the Originator,
and, in that capacity, acts as an intermediary between the Originator and ODFI
✔✔Third-Party Service Provider - ✔✔A third party that processes ACH files and/or
entries on behalf of financial institutions and/or Originators
✔✔ACH Operator - ✔✔The central clearing facility for ACH transactions
✔✔Receiving Depository Financial Institution (RDFI) - ✔✔A financial institution that
receives ACH entries from ACH Operator and post entries to accounts of its depositors.
, ✔✔Originating Depository Financial Institution (ODFI) - ✔✔A financial institution that
receives payment instructions from Originators and forwards the entry to the ACH
Operator.
✔✔Receiver - ✔✔an individual or company that has authorized an Originator to initiate
an ACH entry to their account with the RDFI.
✔✔Originator - ✔✔A company or individual that has been authorized by the Receiver to
initiate either a credit or debit ACH entry to their account
✔✔Blockchain - ✔✔Uses algorithms to enable transactions to be aggregated in blocks,
which are added to a chain of existing blocks using a cryptographic signature.
✔✔Distributed Ledger Technology (DLT) - ✔✔A type of database that is consensually
shared and synchronized across nodes in a network spread across multiple sides,
institutions or geographies.
✔✔International Organization for Standardization (ISO) - ✔✔An international standard-
setting body composed of representatives from various national standards
organizations.
✔✔Value-added network (VAN) - ✔✔A hosted service offering that acts as an
intermediary between business partners to transmit data (business documents).
✔✔Electronic Data Interchange (EDI) - ✔✔the computer-to-computer exchange of
business documents and payment related information in standard electronic format
between business partners.
✔✔Credit Analysis - ✔✔Method used to calculate the creditworthiness of an individual
or business.
✔✔Procedures - ✔✔Defines the manner in which an organization will proceed, perform
or affect something to accomplish the objectives of a policy.
✔✔Policy - ✔✔Defines the course of action adopted for the sake of expediency and
facilitation of objectives.
✔✔Shareholders - ✔✔Group of individuals that may elect directors of an organization,
including CEO and CFO, and benefit through dividends nor share buybacks.
✔✔Senior Management Team(Executive Management, Management Team) -
✔✔Group of individuals at the highest-level of management of an organization who
have the day to day tasks of managing the organization.
