AAP Prep Exam Questions and Answers 100% Pass

AAP Prep Exam Questions and Answers 100% Pass Check Payment System Participants - Payor Payee Payee's Depository Financial Institution Correspondent Bank Payor's Depository Financial Institution Bank of First Deposit (BOFD) Correspondent Bank Truncating Bank Reconverting Bank Fedwire Funds & Securities Participants - Originator Originating/Sender Bank Federal Reserve Bank Receiver Bank Beneficiary 2 | P a g e Katelyn Whitman© 2025, All Rights Reserved. Card Payment Participants - Card Holder Card Issuer Merchant Acquirer POS/ATM Credit Card Network ACH Network Participants - Originator (Company, Employer, Consumer) ODFI Originating ACH Operator Receiving ACH Operator RDFI Receiver (Company, Employee, Consumer) Check System - Legal Framework - UCC Article 3 (gov checks - layout) UCC Article 4 (gov check collection) Reg CC (funds availability) Reg J (est. proc. for the interbank system of collecting checks) Check 21(govs substitue checks/IRD's) FRB Op Circular 3 3 | P a g e Katelyn Whitman© 2025, All Rights Reserved. ECCHO Rules (Electronic Check Clearing House Org) NACHA Op Rules Fedwire Funds Service - Legal Framework - Federal Reserve Act Sections 11 & 13 Reg J -subpart B UCC Article 4A FRB Op Circulars 1, 5, & 6 Reg CC BSA - 31 CFR 103 (recordkpng req/trav rule) OFAC Regs Fedwire Securities Service Legal Framework - Federal Reserve Act Sections 11 & 15 TRADES and Agency Regulations UCC Articles 8 & 9 FRB Op Circulars 1, 5, & 7 Card Legal Framework - Reg E Reg Z Req & responsibilities fo a participant in a POS or ATM network are governed by the "rules covering the POS or ATM network" to which the participant belongs. 4 | P a g e Katelyn Whitman© 2025, All Rights Reserved. ACH Legal Framework - ACH/NACHA Operating Rules Book Federal Reserve Op Circular 4 Reg E (EFTA) UCC Article 4 (check law) & UCC Article 4A (corp cr-varies by state-ccd ctx) Title 31 CFR Part 210 (Green Book) Reg D (acct requirements) Reg CC (ck clearing/funds availability) BSA/Right to Fin Privacy Act OCC Circular 235 (national banks-risk guides) OFAC Define MICR - Magnetic Ink Character Recognition How many types of checks are there & what are they? - Two