AAP TEST BANK FINAL EXAM 2026-2027
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Acknowledgments (ACK and ATX)
A non-monetary entry initiated by an RDFI that provides
acknowledgment of receipt by the RDFI of a corporate credit
payment originated using the CCD format ("ACK" entry) or the CTX
format ("ATX" entry.)
Administrative Return Rate
The rate at which an Originator's or Third- Party Sender's debit entries
are
returned for administrative reasons (Return Reason Codes R02,
R03, or R04), as calculated by the Rules requirement in Article Two
(ODFI Return Rate
Reporting Regarding an Originator's or Third-Party Sender's
Administrative Return Rate or Overall Return Rate.)
Administrative Return Rate Level
3%
,Addenda Record
An ACH record that contains supplemental data related to an entry.
This information may be needed to completely identify an account
holder(s) or provide information concerning a payment to the RDFI
and the Receiver.
Agreement
A contract between entities (i.e., originating company and
originating financial institution; originating company or originating
financial institution and a Third- Party Service Provider
Third-Party sender
A type of Third-Party Service Provider that acts as an
intermediary in
Transmitting entries between an Originator and an ODFI,
including through Direct Access, and acts on behalf of an
Originator or another Third-Party
Sender. A Third-Party Sender is never the Originator for entries it
transmits on behalf of another Organization, however, it may be
an Originator of other entries initiated on its own behalf.
,Algorithm
A mathematical process used to encode or decode a message,
or a prescribed set of well-defined rules or processes for the
solution of a problem in a finite number of steps.
ANSI
The American National Standards Institute is the coordinating
organization for America's federated national standards system.
Membership comes from industry trade associations and the Federal
Government. Special committees within ANSI deal with standards for
bank cards and financial communication networks.
Article 4A
Article 4A of the Uniform Commercial Code. This article was
developed principally to establish a comprehensive body of law for
wholesale wire
transfers. However, the scope of Article 4A goes beyond wire transfers
and includes all electronic credit transfers made through the ACH
Network not otherwise subject to the EFTA (generally business-to-
business credit
transfers). Its primary purpose is to explain the risks and
responsibilities of the parties to the transaction.
, ASC X9
The Accredited Standards Committee group that deals with
standards involving dealings between Financial Institutions.
The standards for the security of financial messages (i.e.
authentication and encryption) are
developed, maintained, and published by ASC X9 (sometimes
referred to as ASC X9 or simply X9).
ASC X12
The Accredited Standards Committee responsible for the
development of uniform standards for inter- industry electronic
interchange of business
transaction data. The data interchange standards consist of
transaction set standards, a data dictionary and transmission
control standards. ASC X12 is generically used to refer to the
standardized format for inter-industry data exchange
(sometimes referred to as ASC X12 or simply X12).
"As Of " Adjustments
A procedure whereby the Federal Reserve Bank adjusts the reserve
or clearing balances required to be maintained by a depository
financial
institution during a seven-day accounting period. "As of " adjustments
typically follow in response to transactions that occur when a financial
\EXAM Preparation Newest With Complete
Questions And Correct Detailed Answers|
Brand New Version!
Acknowledgments (ACK and ATX)
A non-monetary entry initiated by an RDFI that provides
acknowledgment of receipt by the RDFI of a corporate credit
payment originated using the CCD format ("ACK" entry) or the CTX
format ("ATX" entry.)
Administrative Return Rate
The rate at which an Originator's or Third- Party Sender's debit entries
are
returned for administrative reasons (Return Reason Codes R02,
R03, or R04), as calculated by the Rules requirement in Article Two
(ODFI Return Rate
Reporting Regarding an Originator's or Third-Party Sender's
Administrative Return Rate or Overall Return Rate.)
Administrative Return Rate Level
3%
,Addenda Record
An ACH record that contains supplemental data related to an entry.
This information may be needed to completely identify an account
holder(s) or provide information concerning a payment to the RDFI
and the Receiver.
Agreement
A contract between entities (i.e., originating company and
originating financial institution; originating company or originating
financial institution and a Third- Party Service Provider
Third-Party sender
A type of Third-Party Service Provider that acts as an
intermediary in
Transmitting entries between an Originator and an ODFI,
including through Direct Access, and acts on behalf of an
Originator or another Third-Party
Sender. A Third-Party Sender is never the Originator for entries it
transmits on behalf of another Organization, however, it may be
an Originator of other entries initiated on its own behalf.
,Algorithm
A mathematical process used to encode or decode a message,
or a prescribed set of well-defined rules or processes for the
solution of a problem in a finite number of steps.
ANSI
The American National Standards Institute is the coordinating
organization for America's federated national standards system.
Membership comes from industry trade associations and the Federal
Government. Special committees within ANSI deal with standards for
bank cards and financial communication networks.
Article 4A
Article 4A of the Uniform Commercial Code. This article was
developed principally to establish a comprehensive body of law for
wholesale wire
transfers. However, the scope of Article 4A goes beyond wire transfers
and includes all electronic credit transfers made through the ACH
Network not otherwise subject to the EFTA (generally business-to-
business credit
transfers). Its primary purpose is to explain the risks and
responsibilities of the parties to the transaction.
, ASC X9
The Accredited Standards Committee group that deals with
standards involving dealings between Financial Institutions.
The standards for the security of financial messages (i.e.
authentication and encryption) are
developed, maintained, and published by ASC X9 (sometimes
referred to as ASC X9 or simply X9).
ASC X12
The Accredited Standards Committee responsible for the
development of uniform standards for inter- industry electronic
interchange of business
transaction data. The data interchange standards consist of
transaction set standards, a data dictionary and transmission
control standards. ASC X12 is generically used to refer to the
standardized format for inter-industry data exchange
(sometimes referred to as ASC X12 or simply X12).
"As Of " Adjustments
A procedure whereby the Federal Reserve Bank adjusts the reserve
or clearing balances required to be maintained by a depository
financial
institution during a seven-day accounting period. "As of " adjustments
typically follow in response to transactions that occur when a financial
