AAP PROFESSIONAL ASSESSMENT Questions with Correct
Answers (Grade A+)
Question 1: RDFIs must identify the sender of a P2P payment on the consumer's periodic statement.
the sender's name is found in the.
Answer: Individual Identification Number field
Question 2: ABC Credit Union becomes aware of a member's death and flags the account. The
following ACH entries are received after her date of death. To limit its liability, which payment must be
returned.
Answer: Social Security benefit payment in the name of the deceased
Question 3: An RDFI that posts ACH entries based solely on the account number is.
Answer: Not liable for any entries sent be the ODFI in error
Question 4: which of the following check payment system participants is responsible for the clearing
and settlement of checks.
Answer: Correspondent Bank
Question 5: if an ODFI receives a contested dishonored return,what alternative do they have to reclaim
the money.
Answer: they must request the money back outside of the ACH Network
Question 6: which of the following SEC codes can be used for both zero-dollar entries and
payment-related information.
Answer: CTC and CCD
Question 7: the risk that the inability or unwillingness of one funds transfer system participant to settle
its commitments causes other participants be unable to settle their commitment is.
Answer: Systemic Risk
Question 8: NACHA has the authority to begin a rules enforcement proceeding and could assess fines if
an Originator exceeds the.
Answer: Unauthorized Return Rate threshold
Question 9: which of the following federal government payments not subject to reclamation.
Answer: IRS tax refund
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, Question 10: which of the following options can decrease an ODFIs credit risk.
Answer: Prefunding
Question 11: ABC Company sends a monthly retirement payment and then receives notice that the
retiree passed away 2 weeks prior to the payment date. How many days does ABC Company have to
initiate a reclamation entry or written demand for payment.
Answer: 5 banking days from receiving notice of the death
Question 12: promote entries under the ACH Rules are for optional use by the Opiginator. An ODFI
may require an Originator to send a prenote by including the requirement in an.
Answer: Origination Agreement
Question 13: which of the following is exempt from regulation E.
Answer: domestic wire transfer
Question 14: which federal reserve regulator defines a non transaction account.
Answer: regulation D
Question 15: the financial organization master file fomf is.
Answer: a department of treasury list of financial institutions receiving federal government ACH payments
Question 16: which of the following specifically addresses the need to cover commercially reasonable
security procedures between an ODFI and the originator.
Answer: UCC 4A
Question 17: which of the following defines the Federal reserve banks role as an ACH operator.
Answer: FRB Operating circular 4
Question 18: on May 20 a garnishment order is received against an account holder for 2000. the accout
review funds the balance in the account is 1000 and there were two federal benefit payments deposited
during the look back period totaling 2500. what is the protected amount to be established.
Answer: 1000
Question 19: which of the following is not included as part of the a financial institutions ACH OFAC
policies and procedures.
Answer: SDN list issued at the time of policy and procedure approval by the board
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Answers (Grade A+)
Question 1: RDFIs must identify the sender of a P2P payment on the consumer's periodic statement.
the sender's name is found in the.
Answer: Individual Identification Number field
Question 2: ABC Credit Union becomes aware of a member's death and flags the account. The
following ACH entries are received after her date of death. To limit its liability, which payment must be
returned.
Answer: Social Security benefit payment in the name of the deceased
Question 3: An RDFI that posts ACH entries based solely on the account number is.
Answer: Not liable for any entries sent be the ODFI in error
Question 4: which of the following check payment system participants is responsible for the clearing
and settlement of checks.
Answer: Correspondent Bank
Question 5: if an ODFI receives a contested dishonored return,what alternative do they have to reclaim
the money.
Answer: they must request the money back outside of the ACH Network
Question 6: which of the following SEC codes can be used for both zero-dollar entries and
payment-related information.
Answer: CTC and CCD
Question 7: the risk that the inability or unwillingness of one funds transfer system participant to settle
its commitments causes other participants be unable to settle their commitment is.
Answer: Systemic Risk
Question 8: NACHA has the authority to begin a rules enforcement proceeding and could assess fines if
an Originator exceeds the.
Answer: Unauthorized Return Rate threshold
Question 9: which of the following federal government payments not subject to reclamation.
Answer: IRS tax refund
Page 1
, Question 10: which of the following options can decrease an ODFIs credit risk.
Answer: Prefunding
Question 11: ABC Company sends a monthly retirement payment and then receives notice that the
retiree passed away 2 weeks prior to the payment date. How many days does ABC Company have to
initiate a reclamation entry or written demand for payment.
Answer: 5 banking days from receiving notice of the death
Question 12: promote entries under the ACH Rules are for optional use by the Opiginator. An ODFI
may require an Originator to send a prenote by including the requirement in an.
Answer: Origination Agreement
Question 13: which of the following is exempt from regulation E.
Answer: domestic wire transfer
Question 14: which federal reserve regulator defines a non transaction account.
Answer: regulation D
Question 15: the financial organization master file fomf is.
Answer: a department of treasury list of financial institutions receiving federal government ACH payments
Question 16: which of the following specifically addresses the need to cover commercially reasonable
security procedures between an ODFI and the originator.
Answer: UCC 4A
Question 17: which of the following defines the Federal reserve banks role as an ACH operator.
Answer: FRB Operating circular 4
Question 18: on May 20 a garnishment order is received against an account holder for 2000. the accout
review funds the balance in the account is 1000 and there were two federal benefit payments deposited
during the look back period totaling 2500. what is the protected amount to be established.
Answer: 1000
Question 19: which of the following is not included as part of the a financial institutions ACH OFAC
policies and procedures.
Answer: SDN list issued at the time of policy and procedure approval by the board
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