APRP EXAMS SET 2026 FULL QUESTIONS AND
CORRECT ANSWERS
◉ ACH Network . Answer: Backbone for the electronic movement of
money and data, a processing and delivery system that provides for the
distribution and settlement among financial institutions of electronic
credits and debits, as well as, non-monetary entries with payment related
information
◉ ACH Operator . Answer: Central clearing facility that receives entries
from the ODFIs and distributes the entries to the appropriate Receiving
Depository Financial Institution
◉ ACH Policy . Answer: Every financial institution should have this
policy that outlines the financial institution's goals and objectives for its
ACH program. The policy should have the approval of the board of
directors. Some elements to be considered or be addressed include:
• A general statement that the organization will process ACH in
accordance with U.S. law and the NACHA Operating Rules
• Compliance with NACHA Operating Rules
• Outline of the types of ACH products the FI will offer
• Any types of prohibited/restricted originators
,• Internal controls practices to address the risk inherent to offering
certain ACH products
• Third Party Senders relationships should be addressed
• ACH Receipt
• ACH Origination
• OFAC Requirements"
◉ Addressing . Answer: Automated means to route/direct a transaction
using a set of data often employing a directory service.
◉ Alternate channel confirmations . Answer: Process of encouraging
customer participation in fraud detection and increase customer
confidence by sending confirmations of certain high-risk activities
through additional communication channels such as the telephone, e-
mail, or traditional mail
◉ AML . Answer: Anti- Money Laundering-
◉ Ancillary Risk . Answer: A consequence or by-product of not
managing credit, operational, fraud, systemic or compliance Risks
◉ Android Pay . Answer: A digital wallet platform developed by
Google to power in-app and tap-to-pay purchases on mobile devices,
enabling users to make payments with Android phones, tablets or
watches. It is an open loop system
,◉ Anomaly Detection . Answer: A technique that compares current
behavior with established patterns of legitimate behavior and looks for
anomalies
◉ API . Answer: A set of specifications, standards or conventions that
enable programs to exchange information
◉ Apple Pay . Answer: A mobile payment and digital wallet service by
Apple Inc. that lets users make payments using an iPhone, Apple Watch,
iPad or Mac. It is an open loop system.
◉ Audit Policy . Answer: A financial institution's policy that should
address the following objectives, whether or not the audit functions are
handled in-house or outsourced: Policy Objective; Scope of work;
Authority; Auditing standards; Outsourcing/third parties; External
auditor restriction
◉ Authentication . Answer: "The explicit instructions, including:
timing, amount, payee, source of funds and other conditions, given by
the payer to the payee to transfer funds on a one-time or recurring basis"
◉ Address Verification System (AVS) . Answer: Verify a cardholder's
billing address and other pertinent information, used for mail, telephone,
and Internet transactions
, ◉ Basel III Regulatory Capital . Answer: A comprehensive set of
reform measures, developed by the Basel Committee on Banking
Supervision (BCBS), to strengthen the regulation, supervision, and risk
management of the banking sector, including both liquidity and capital
reforms.
◉ Business Continuity Planning (BCP) . Answer: Develop, implement,
and test appropriate disaster recovery, in order to maintain acceptable
retail payment-related customer service levels
◉ Business Impact Analysis (BIA) . Answer: A flow analysis that
involves an assessment and prioritization of those business functions and
processes that must be recovered. should also consider the impact of
legal and regulatory requirements. should also estimate the maximum
allowable downtime for critical business functions and processes and the
acceptable level of losses (data, operations, financial, reputation, and
market share) associated with this estimated downtime
◉ Biometrics . Answer: Methods include voice scanning and iris and
retinal imagingfinger scan linked to his or her personal identification
information.
◉ Capital adequacy . Answer: Refers to the amount of capital a
financial institution has to hold as required by its regulator
CORRECT ANSWERS
◉ ACH Network . Answer: Backbone for the electronic movement of
money and data, a processing and delivery system that provides for the
distribution and settlement among financial institutions of electronic
credits and debits, as well as, non-monetary entries with payment related
information
◉ ACH Operator . Answer: Central clearing facility that receives entries
from the ODFIs and distributes the entries to the appropriate Receiving
Depository Financial Institution
◉ ACH Policy . Answer: Every financial institution should have this
policy that outlines the financial institution's goals and objectives for its
ACH program. The policy should have the approval of the board of
directors. Some elements to be considered or be addressed include:
• A general statement that the organization will process ACH in
accordance with U.S. law and the NACHA Operating Rules
• Compliance with NACHA Operating Rules
• Outline of the types of ACH products the FI will offer
• Any types of prohibited/restricted originators
,• Internal controls practices to address the risk inherent to offering
certain ACH products
• Third Party Senders relationships should be addressed
• ACH Receipt
• ACH Origination
• OFAC Requirements"
◉ Addressing . Answer: Automated means to route/direct a transaction
using a set of data often employing a directory service.
◉ Alternate channel confirmations . Answer: Process of encouraging
customer participation in fraud detection and increase customer
confidence by sending confirmations of certain high-risk activities
through additional communication channels such as the telephone, e-
mail, or traditional mail
◉ AML . Answer: Anti- Money Laundering-
◉ Ancillary Risk . Answer: A consequence or by-product of not
managing credit, operational, fraud, systemic or compliance Risks
◉ Android Pay . Answer: A digital wallet platform developed by
Google to power in-app and tap-to-pay purchases on mobile devices,
enabling users to make payments with Android phones, tablets or
watches. It is an open loop system
,◉ Anomaly Detection . Answer: A technique that compares current
behavior with established patterns of legitimate behavior and looks for
anomalies
◉ API . Answer: A set of specifications, standards or conventions that
enable programs to exchange information
◉ Apple Pay . Answer: A mobile payment and digital wallet service by
Apple Inc. that lets users make payments using an iPhone, Apple Watch,
iPad or Mac. It is an open loop system.
◉ Audit Policy . Answer: A financial institution's policy that should
address the following objectives, whether or not the audit functions are
handled in-house or outsourced: Policy Objective; Scope of work;
Authority; Auditing standards; Outsourcing/third parties; External
auditor restriction
◉ Authentication . Answer: "The explicit instructions, including:
timing, amount, payee, source of funds and other conditions, given by
the payer to the payee to transfer funds on a one-time or recurring basis"
◉ Address Verification System (AVS) . Answer: Verify a cardholder's
billing address and other pertinent information, used for mail, telephone,
and Internet transactions
, ◉ Basel III Regulatory Capital . Answer: A comprehensive set of
reform measures, developed by the Basel Committee on Banking
Supervision (BCBS), to strengthen the regulation, supervision, and risk
management of the banking sector, including both liquidity and capital
reforms.
◉ Business Continuity Planning (BCP) . Answer: Develop, implement,
and test appropriate disaster recovery, in order to maintain acceptable
retail payment-related customer service levels
◉ Business Impact Analysis (BIA) . Answer: A flow analysis that
involves an assessment and prioritization of those business functions and
processes that must be recovered. should also consider the impact of
legal and regulatory requirements. should also estimate the maximum
allowable downtime for critical business functions and processes and the
acceptable level of losses (data, operations, financial, reputation, and
market share) associated with this estimated downtime
◉ Biometrics . Answer: Methods include voice scanning and iris and
retinal imagingfinger scan linked to his or her personal identification
information.
◉ Capital adequacy . Answer: Refers to the amount of capital a
financial institution has to hold as required by its regulator
