APRP 2022 - Sample Exam
Study online at https://quizlet.com/_brl94p
1. D A check is not considered a negotiable instrument under
Regulation CC if it:
a. Does not have a date
b. Is future dated
c. Does not have a named payee
d. Is not printed in MICR ink
2. D Fedwire Funds are final and irrevocable upon completion
of processing by the _________.
a. Beneficiary's Depository Institution
b. Originator's Depository Institution
c. Originator
d. Federal Reserve Banks
3. C A security procedure is not considered commercially rea-
sonable for a wire transfer if:
a. The security procedure complies with Regulation J
b. The security procedure utilizes a micro-payment to val-
idate the account
c. The security procedure is only compared to a signature
d. The security procedure utilizes a Prenote to validate the
account
4. B Real-time Payments (RTP) allows a financial institution to
limit its exposure risk by:
a. Ensuring equipment is safeguarded
b. Utilizing prefunding
c. Utilizing a micro-payment prior to initiating live payment
d. Protection via Daylight-Overdraft
5. B The duration of exposure risk for a financial institution
when originating ACH debit entries is:
a. One day prior to Settlement Date
b. The period from when entries are released to the ACH
Operator, through the time entries can no longer be re-
turned by the RDFI
c. Mitigated through strong fraud controls
d. Mitigated through strong operational controls
, APRP 2022 - Sample Exam
Study online at https://quizlet.com/_brl94p
6. C To control daylight overdrafts, the ___________ establish-
es net debit caps on the amount of Reserve Bank daylight
credit that a depository institution may use during a single
day or over a two- week reserve maintenance period.
a. Fedwire Funds Credit Policy
b. Federal Reserve Banks Operating Circular No. 5
c. Payment System Risk Policy
d. Payment Card Industry Data Security Standard
7. B Which regulation requires that a paying bank must return
a check such that it is received by the Bank of First De-
posit by 2:00 p.m. local time on the second business day
following the date of presentment?
a. UCC midnight deadline
b. Reg CC expeditious return
c. Reg E expedited re-credit
d. OCC 231
8. C According to COSO, Enterprise Risk Management is:
a. The responsibility of a designated department within the
organization
b. A function within the organization
c. The culture, capabilities, and practices that organiza-
tions integrate within their strategy to manage risk and
preserve and realize value
d. Managing a listing of various risks that impact an orga-
nization
9. B An effective BSA/AML/OFAC compliance program con-
sists of:
a. Procedures to identify cross-channel risk
b. Board approved written policies, procedures and
processes to prevent money laundering and terrorist fi-
nancing
c. Procedures for OFAC due diligence
d. Board approved risk matrix for on-boarding new
third-party service providers
10. D According to COSO, _________ is the amount of risk, on
a broad level, an entity is willing to accept in pursuit of
Study online at https://quizlet.com/_brl94p
1. D A check is not considered a negotiable instrument under
Regulation CC if it:
a. Does not have a date
b. Is future dated
c. Does not have a named payee
d. Is not printed in MICR ink
2. D Fedwire Funds are final and irrevocable upon completion
of processing by the _________.
a. Beneficiary's Depository Institution
b. Originator's Depository Institution
c. Originator
d. Federal Reserve Banks
3. C A security procedure is not considered commercially rea-
sonable for a wire transfer if:
a. The security procedure complies with Regulation J
b. The security procedure utilizes a micro-payment to val-
idate the account
c. The security procedure is only compared to a signature
d. The security procedure utilizes a Prenote to validate the
account
4. B Real-time Payments (RTP) allows a financial institution to
limit its exposure risk by:
a. Ensuring equipment is safeguarded
b. Utilizing prefunding
c. Utilizing a micro-payment prior to initiating live payment
d. Protection via Daylight-Overdraft
5. B The duration of exposure risk for a financial institution
when originating ACH debit entries is:
a. One day prior to Settlement Date
b. The period from when entries are released to the ACH
Operator, through the time entries can no longer be re-
turned by the RDFI
c. Mitigated through strong fraud controls
d. Mitigated through strong operational controls
, APRP 2022 - Sample Exam
Study online at https://quizlet.com/_brl94p
6. C To control daylight overdrafts, the ___________ establish-
es net debit caps on the amount of Reserve Bank daylight
credit that a depository institution may use during a single
day or over a two- week reserve maintenance period.
a. Fedwire Funds Credit Policy
b. Federal Reserve Banks Operating Circular No. 5
c. Payment System Risk Policy
d. Payment Card Industry Data Security Standard
7. B Which regulation requires that a paying bank must return
a check such that it is received by the Bank of First De-
posit by 2:00 p.m. local time on the second business day
following the date of presentment?
a. UCC midnight deadline
b. Reg CC expeditious return
c. Reg E expedited re-credit
d. OCC 231
8. C According to COSO, Enterprise Risk Management is:
a. The responsibility of a designated department within the
organization
b. A function within the organization
c. The culture, capabilities, and practices that organiza-
tions integrate within their strategy to manage risk and
preserve and realize value
d. Managing a listing of various risks that impact an orga-
nization
9. B An effective BSA/AML/OFAC compliance program con-
sists of:
a. Procedures to identify cross-channel risk
b. Board approved written policies, procedures and
processes to prevent money laundering and terrorist fi-
nancing
c. Procedures for OFAC due diligence
d. Board approved risk matrix for on-boarding new
third-party service providers
10. D According to COSO, _________ is the amount of risk, on
a broad level, an entity is willing to accept in pursuit of
