Questions and Correct
Answers | New Update
Which of the following specify the requirements for reserves that a
depository institution must maintain at a Federal Reserve Bank?
a. Uniform Commercial Code Article 4A
b. Federal Reserve Bank Operating Circular 4
c. Regulation D
d. Regulation CC - ANSWER ✔✔Regulation D
Which of the following specifically addresses national banks and their
need to evaluate large dollar payment system network risks and requires
,reporting this to top management and maintaining agreements with all
parties that they do business with?
a. OCC Banking Circular 235
b. UCC 4
c. Regulation Z
d. UCC 4A - ANSWER ✔✔OCC Banking Circular 235
When an Originator is initiating an MTE, POS, SHR entry where a
personal identification number (PIN) is required in connection with the
authorization, the Originator MUST comply with: - ANSWER ✔✔ANSI
ASC X9.8 Standards
Which of the following payment systems is referred to as real-time and
gross settlement?
a. Fedwire Funds Transfer
b. Check Processing System
c. Debit Card Network
d. ACH Network - ANSWER ✔✔Fedwire Funds Transfer
Choose the correct description of the Acquirer in the card network
system:
,a. The entity that has agreed to accept credit and debit cards for the
purchase of goods and
services
b. The entity that issues a credit or debit card to the card holder
c. A financial institution that represents merchants in accepting POS
transactions
d. The network that provides switching facilities for the card transactions
- ANSWER ✔✔A financial institution that represents merchants in
accepting POS transactions
Which of the following lists the participants in check processing order?
a. Payor/Payee/Receiver/Paying Bank
b. Payee/Bank of First Deposit/Correspondent Bank/Paying Bank
c. Payor/Payee/Payee's FI/Payor's FI/Correspondent Bank
d. Payor/Payee/Merchant/ODFI/RDFI - ANSWER ✔✔Payee>Bank of
First Deposit>Correspondent Bank> Paying Bank
An unauthorized entry is transmitted into the ACH Networkby County
Council Credit Union, there are financial losses involved and County
Council Credit Union and the RDFI (State Bank) cannot come to an
agreement as to who should be paying what amount of money and to
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, whom. What is the minimum amount of dispute BEFORE a complaint
can be filed to initiate an arbitration proceeding?
a. $200
b. $250
c. $1,000
d. $2,500 - ANSWER ✔✔$250
Blue Sky Bank does ACH origination for two local companies in town.
The bank has agreements in place with the two originators in which it
provides the necessary disclosures for UCC Article 4A as required by the
NACHA Operating Rules. Which provision of the UCC Article 4A can be
varied by agreement (with disclosure to Originator)?
a. Delay or Failure to Transmit Entries
b. Payment Upon Acceptance of Entries
c. Duty to Pay ODFI
d. Choice of Law - ANSWER ✔✔Choice of Law
First Bank received a credit return entry R02 (Account closed) for
$35,000 two weeks after the original transaction was transmitted to the
Receiver. First Bank feels that the RDFI (Oceans Bank) owes them
interest and penalties for failing to return the credit entry timely. What is