APRP UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS
✔✔Anomalous Activity - ✔✔Activity that is inconsistent with or deviating from what is
usual, normal or expected.
✔✔Office of Foreign Assets Control (OFAC) - ✔✔Administers economic sanctions and
embargo programs that require assests and transactions involving the interest of
targeted parties be frozen.
✔✔Risk Appetite - ✔✔Amount of risk, on a broad level, an entity is willing to accept in
pursuit of value.
✔✔Card Issuer - ✔✔An entity that issues a credit or debit card to the Cardholder.
✔✔Credit Entry - ✔✔An entry to the record of an account that represents the transfer or
placement of funds into the account.
✔✔Debit Entry - ✔✔An entry to the record of an account to represent the transfer or
removal of funds from the account.
✔✔Receiver - ✔✔An individual or company that has authorized an Originator to initiate
an ACH entry to their account with the RDFI.
✔✔ISO - International Organization for Standards - ✔✔An international standard-setting
body composed of representatives from various national standards and organizations.
✔✔Electronic Signature in Global and National Commerce Act (E-Sign Act) - ✔✔Any
agreement, authorization, Written Statement of Unauthorized Debit or other record that
requires signatures or similarly authenticated methods may use an electronic signature
in conformity with the terms of this Act.
✔✔Complex Device Identification - ✔✔Authentication technique that uses one-time
cookies, PC configuration, IP address, geo-location and other factors.
✔✔Out-of-Wallet Questions - ✔✔Challenge questions that do not rely on information
that is publicly available.
✔✔RCC - Remotely Created Check - ✔✔Check created by a Payee based on the
account holder's authorization that does not bear a signature.
✔✔Credit Policy - ✔✔Clear, written guidelines that set the terms and conditions for
supplying services on credit, qualification criteria, procedures for making collections and
steps to be taken in case of customer delinquency.
, ✔✔EDI - Electronic Data Interchange - ✔✔Computer-to-computer exchange of business
documents and payment-related information in a standard electronic format between
business partners.
✔✔Administrative Controls - ✔✔Controls that align with board-approved risk appetite
and inform employees of management's expectations.
✔✔Procedural Controls - ✔✔Controls that establish policies and procedures that reduce
risk and ensure operaring, reporting and compliance objectives are met.
✔✔Financial Controls - ✔✔Controls to detect and/or prevent errors or
misappropriations.
✔✔Liquidity Risk - ✔✔Current and potential risk to earnings or capital arising from a
financial institution's inability to settle an obligation for full value when it is due.
✔✔Uniform Commercial Code Article 3 (UCC 3) - ✔✔Defines a negotiable check and
types of endorsements.
✔✔Federal Reserve Bank Operating Circular 3 (OC 3) - ✔✔Defines Federal Reserve
Bank and financial institution responsibilities in clearing checks.
✔✔Federal Reserve Bank Operating Circular 6 (OC 6) - ✔✔Defines Federal Reserve
Bank and financial institution responsibilities in transmitting funds transfers throught the
Fedwire Funds Service
✔✔Policy - ✔✔Defines the course of action adopted for the sake of expediency and
facilitation of objectives.
✔✔RDC - Remote Deposit Capture - ✔✔Delivery system that enables paper checks to
be processed remotely.
✔✔Regulation Z - ✔✔Designed to help consumers "comparison shop" for credit by
requiring disclosures about terms and cost.
✔✔Overwriting - ✔✔Disposal technique used to destroy sensitive, electronic data on
devices by replacing it with new, random data.
✔✔Degaussing - ✔✔Disposal technique using powerful, varying magnetic fields to
scramble data recorded on media.
✔✔Federal Reserve Bank - ✔✔Entity that processes and settles Fedwire Funds.
✔✔Anomalous Activity - ✔✔Activity that is inconsistent with or deviating from what is
usual, normal or expected.
✔✔Office of Foreign Assets Control (OFAC) - ✔✔Administers economic sanctions and
embargo programs that require assests and transactions involving the interest of
targeted parties be frozen.
✔✔Risk Appetite - ✔✔Amount of risk, on a broad level, an entity is willing to accept in
pursuit of value.
✔✔Card Issuer - ✔✔An entity that issues a credit or debit card to the Cardholder.
✔✔Credit Entry - ✔✔An entry to the record of an account that represents the transfer or
placement of funds into the account.
✔✔Debit Entry - ✔✔An entry to the record of an account to represent the transfer or
removal of funds from the account.
✔✔Receiver - ✔✔An individual or company that has authorized an Originator to initiate
an ACH entry to their account with the RDFI.
✔✔ISO - International Organization for Standards - ✔✔An international standard-setting
body composed of representatives from various national standards and organizations.
✔✔Electronic Signature in Global and National Commerce Act (E-Sign Act) - ✔✔Any
agreement, authorization, Written Statement of Unauthorized Debit or other record that
requires signatures or similarly authenticated methods may use an electronic signature
in conformity with the terms of this Act.
✔✔Complex Device Identification - ✔✔Authentication technique that uses one-time
cookies, PC configuration, IP address, geo-location and other factors.
✔✔Out-of-Wallet Questions - ✔✔Challenge questions that do not rely on information
that is publicly available.
✔✔RCC - Remotely Created Check - ✔✔Check created by a Payee based on the
account holder's authorization that does not bear a signature.
✔✔Credit Policy - ✔✔Clear, written guidelines that set the terms and conditions for
supplying services on credit, qualification criteria, procedures for making collections and
steps to be taken in case of customer delinquency.
, ✔✔EDI - Electronic Data Interchange - ✔✔Computer-to-computer exchange of business
documents and payment-related information in a standard electronic format between
business partners.
✔✔Administrative Controls - ✔✔Controls that align with board-approved risk appetite
and inform employees of management's expectations.
✔✔Procedural Controls - ✔✔Controls that establish policies and procedures that reduce
risk and ensure operaring, reporting and compliance objectives are met.
✔✔Financial Controls - ✔✔Controls to detect and/or prevent errors or
misappropriations.
✔✔Liquidity Risk - ✔✔Current and potential risk to earnings or capital arising from a
financial institution's inability to settle an obligation for full value when it is due.
✔✔Uniform Commercial Code Article 3 (UCC 3) - ✔✔Defines a negotiable check and
types of endorsements.
✔✔Federal Reserve Bank Operating Circular 3 (OC 3) - ✔✔Defines Federal Reserve
Bank and financial institution responsibilities in clearing checks.
✔✔Federal Reserve Bank Operating Circular 6 (OC 6) - ✔✔Defines Federal Reserve
Bank and financial institution responsibilities in transmitting funds transfers throught the
Fedwire Funds Service
✔✔Policy - ✔✔Defines the course of action adopted for the sake of expediency and
facilitation of objectives.
✔✔RDC - Remote Deposit Capture - ✔✔Delivery system that enables paper checks to
be processed remotely.
✔✔Regulation Z - ✔✔Designed to help consumers "comparison shop" for credit by
requiring disclosures about terms and cost.
✔✔Overwriting - ✔✔Disposal technique used to destroy sensitive, electronic data on
devices by replacing it with new, random data.
✔✔Degaussing - ✔✔Disposal technique using powerful, varying magnetic fields to
scramble data recorded on media.
✔✔Federal Reserve Bank - ✔✔Entity that processes and settles Fedwire Funds.
