APRP Practice Test
Comprehensive Questions with
Verified Answers Graded A+
1. 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 - Answer: D. Is not printed in MICR ink.
2. 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 - Answer: D. Federal Reserves Banks
3. A security procedure is not considered commercially reasonable for a wire transfer if:
a. The security procedure complies with Regulation J
b. The security procedure utilizes a micro-payment to validate the account
c. The security procedure is only compared to a signature
d. The security procedure utilizes a Prenote to validate the account - Answer: C. The security
procedure is only compared to a signature
4. 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 - Answer: B. Utilizing prefunding
5. 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 returned by the RDFI
c. Mitigated through strong fraud controls
d. Mitigated through strong operational controls - Answer: B. The period from when entries are
released to the ACH Operator, through the time entries can no longer be returned by the RDFI
6. To control daylight overdrafts, the "_____________________" establishes 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 - Answer: c. Payment System Risk Policy
7. Which regulation requires that a paying bank must return a check such that it is received by
the Bank of First Deposit 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
Comprehensive Questions with
Verified Answers Graded A+
1. 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 - Answer: D. Is not printed in MICR ink.
2. 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 - Answer: D. Federal Reserves Banks
3. A security procedure is not considered commercially reasonable for a wire transfer if:
a. The security procedure complies with Regulation J
b. The security procedure utilizes a micro-payment to validate the account
c. The security procedure is only compared to a signature
d. The security procedure utilizes a Prenote to validate the account - Answer: C. The security
procedure is only compared to a signature
4. 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 - Answer: B. Utilizing prefunding
5. 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 returned by the RDFI
c. Mitigated through strong fraud controls
d. Mitigated through strong operational controls - Answer: B. The period from when entries are
released to the ACH Operator, through the time entries can no longer be returned by the RDFI
6. To control daylight overdrafts, the "_____________________" establishes 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 - Answer: c. Payment System Risk Policy
7. Which regulation requires that a paying bank must return a check such that it is received by
the Bank of First Deposit 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
