AAP Handbook Test Questions With
Correct Answers
Which of the following specify the requirements for reserves that a depository
| | | | | | | | | | | |
institution must maintain at a Federal Reserve Bank?
| | | | | | |
☐a. Uniform Commercial Code Article 4A
| | | | |
☐b. Federal Reserve Bank Operating Circular 4
| | | | | |
☐c. Regulation D
| |
☐d. Regulation CC - CORRECT ANSWER✔✔-C
| | | | |
Which of the following specifically addresses national banks and their need to
| | | | | | | | | | | |
evaluate large dollar payment system network risks and requires reporting this to
| | | | | | | | | | | |
top management and maintaining agreements with all parties that they do
| | | | | | | | | | |
business with? |
☐a. OCC Banking Circular 235
| | | |
☐b. UCC 4
| |
☐c. Regulation Z
| |
☐d. UCC 4A - CORRECT ANSWER✔✔-A
| | | | |
When an Originator is initiating an MTE, POS or SHR entry where a personal
| | | | | | | | | | | | | |
identification number (PIN) is required in connection with the authorization, the
| | | | | | | | | | |
Originator MUST comply with:
| | |
☐a. ANSI ASC X9.8 Standards
| | | |
,☐b. ANSI ASC X12 Standards
| | | |
☐c. ANSI ASC X8.9 Standards
| | | |
☐d. ANSI ASC X12.9 Standards - CORRECT ANSWER✔✔-A
| | | | | | |
Which of the following payment systems is referred to as real-time and gross
| | | | | | | | | | | | |
settlement?
☐a. Fedwire Funds Transfer
| | |
☐b. Check Processing System
| | |
☐c. Debit Card Network
| | |
☐d. ACH Network - CORRECT ANSWER✔✔-A
| | | | |
Choose the correct description of the Acquirer in the card network system:
| | | | | | | | | | |
☐a. The entity that has agreed to accept credit and debit cards for the purchase
| | | | | | | | | | | | | | |
of goods and
| |
services
☐b. The entity that issues a credit or debit card to the card holder
| | | | | | | | | | | | |
☐c. A financial institution that represents merchants in accepting POS
| | | | | | | | | |
transactions
☐d. The network that provides switching facilities for the card transactions -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-C |
Which of the following lists the participants in the check participants in check
| | | | | | | | | | | | |
processing order? |
☐a. Payor/Payee/Receiver/Paying Bank
| |
☐b. Payee/Bank of First Deposit/Correspondent Bank/Paying Bank
| | | | | |
,☐c. Payor/Payee/Payee's FI/Payor's FI/Correspondent Bank
| | | |
☐d. Payor/Payee/Merchant/ODFI/RDFI - CORRECT ANSWER✔✔-B
| | | |
An unauthorized entry is transmitted into the ACH Network by County Credit
| | | | | | | | | | | |
Union, there are financial losses involved and County Credit Union and the RDFI
| | | | | | | | | | | | |
(State Bank) cannot come to an agreement as who should be paying what
| | | | | | | | | | | | |
amount of money and to whom. What is the minimum amount of dispute
| | | | | | | | | | | | |
BEFORE a complaint can be filed to initiate an arbitration
| | | | | | | | |
proceeding?
☐a. $200 |
☐b. $250 |
☐c $1,000
|
☐d. $2,500 - CORRECT ANSWER✔✔-B
| | | |
Blue Sky Bank does ACH origination for two local companies in town. The bank
| | | | | | | | | | | | | |
has agreements in place with the two originators in which it provides the
| | | | | | | | | | | | |
necessary disclosures for UCC Article 4A as required by the NACHA Operating
| | | | | | | | | | | |
Rules. Which provision of UCC
| | | |
Article 4A can be varied by agreement (with disclosure to Originator)?
| | | | | | | | | |
☐a. Delay or Failure to Transmit Entries
| | | | | |
☐b. Payment Upon Acceptance of Entries
| | | | |
☐c. Duty to Pay ODFI
| | | |
☐d. Choice of Law - CORRECT ANSWER✔✔-D
| | | | | |
First Bank received a credit return entry as R02 (Account Closed) for $35,000 two
| | | | | | | | | | | | | |
weeks after the original transaction was transmitted to the Receiver. First Bank
| | | | | | | | | | | |
, feels that the RDFI (Oceans Bank) owes them interest and penalties for failing to
| | | | | | | | | | | | | |
return the credit entry timely. What is the minimum dollar amount of loss
| | | | | | | | | | | | |
suffered to file a claim for compensation?
| | | | | |
☐a. $250|
☐b. $100|
☐c. $150|
☐d. $200 - CORRECT ANSWER✔✔-D
| | | |
Anthony opened his checking account with Northern Bank in February. In the
| | | | | | | | | | | |
initial disclosures provided by Northern Bank upon account opening, the ATM fee
| | | | | | | | | | | |
was clearly stated as being $3.00 per transaction. Effective October 1, the fee for
| | | | | | | | | | | | | |
using an ATM will increase to $3.50. According to Regulation E, how many days
| | | | | | | | | | | | | |
prior notice is required when there is a change to the initial disclosures which
| | | | | | | | | | | | | |
results in greater consumer liability?
| | | |
☐a. 21 days
| |
☐b. 30 days
| |
☐c. 15 days
| |
☐d. 10 days - CORRECT ANSWER✔✔-A
| | | | |
According to an original authorization between Georgia and her health club, the
| | | | | | | | | | | |
monthly membership dues are $35.00 each month. The health club must increase
| | | | | | | | | | |
their monthly membership dues to $40.00 each month to cover increasing costs
| | | | | | | | | | | | |
due to the economy. Which of the following regulations requires the health club
| | | | | | | | | | | | |
to provide a 10-day notice when there is a change in dollar amount of the original
| | | | | | | | | | | | | | |
authorization?
|
☐a. Regulation D
| |
☐b. Regulation E
| |
Correct Answers
Which of the following specify the requirements for reserves that a depository
| | | | | | | | | | | |
institution must maintain at a Federal Reserve Bank?
| | | | | | |
☐a. Uniform Commercial Code Article 4A
| | | | |
☐b. Federal Reserve Bank Operating Circular 4
| | | | | |
☐c. Regulation D
| |
☐d. Regulation CC - CORRECT ANSWER✔✔-C
| | | | |
Which of the following specifically addresses national banks and their need to
| | | | | | | | | | | |
evaluate large dollar payment system network risks and requires reporting this to
| | | | | | | | | | | |
top management and maintaining agreements with all parties that they do
| | | | | | | | | | |
business with? |
☐a. OCC Banking Circular 235
| | | |
☐b. UCC 4
| |
☐c. Regulation Z
| |
☐d. UCC 4A - CORRECT ANSWER✔✔-A
| | | | |
When an Originator is initiating an MTE, POS or SHR entry where a personal
| | | | | | | | | | | | | |
identification number (PIN) is required in connection with the authorization, the
| | | | | | | | | | |
Originator MUST comply with:
| | |
☐a. ANSI ASC X9.8 Standards
| | | |
,☐b. ANSI ASC X12 Standards
| | | |
☐c. ANSI ASC X8.9 Standards
| | | |
☐d. ANSI ASC X12.9 Standards - CORRECT ANSWER✔✔-A
| | | | | | |
Which of the following payment systems is referred to as real-time and gross
| | | | | | | | | | | | |
settlement?
☐a. Fedwire Funds Transfer
| | |
☐b. Check Processing System
| | |
☐c. Debit Card Network
| | |
☐d. ACH Network - CORRECT ANSWER✔✔-A
| | | | |
Choose the correct description of the Acquirer in the card network system:
| | | | | | | | | | |
☐a. The entity that has agreed to accept credit and debit cards for the purchase
| | | | | | | | | | | | | | |
of goods and
| |
services
☐b. The entity that issues a credit or debit card to the card holder
| | | | | | | | | | | | |
☐c. A financial institution that represents merchants in accepting POS
| | | | | | | | | |
transactions
☐d. The network that provides switching facilities for the card transactions -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-C |
Which of the following lists the participants in the check participants in check
| | | | | | | | | | | | |
processing order? |
☐a. Payor/Payee/Receiver/Paying Bank
| |
☐b. Payee/Bank of First Deposit/Correspondent Bank/Paying Bank
| | | | | |
,☐c. Payor/Payee/Payee's FI/Payor's FI/Correspondent Bank
| | | |
☐d. Payor/Payee/Merchant/ODFI/RDFI - CORRECT ANSWER✔✔-B
| | | |
An unauthorized entry is transmitted into the ACH Network by County Credit
| | | | | | | | | | | |
Union, there are financial losses involved and County Credit Union and the RDFI
| | | | | | | | | | | | |
(State Bank) cannot come to an agreement as who should be paying what
| | | | | | | | | | | | |
amount of money and to whom. What is the minimum amount of dispute
| | | | | | | | | | | | |
BEFORE a complaint can be filed to initiate an arbitration
| | | | | | | | |
proceeding?
☐a. $200 |
☐b. $250 |
☐c $1,000
|
☐d. $2,500 - CORRECT ANSWER✔✔-B
| | | |
Blue Sky Bank does ACH origination for two local companies in town. The bank
| | | | | | | | | | | | | |
has agreements in place with the two originators in which it provides the
| | | | | | | | | | | | |
necessary disclosures for UCC Article 4A as required by the NACHA Operating
| | | | | | | | | | | |
Rules. Which provision of UCC
| | | |
Article 4A can be varied by agreement (with disclosure to Originator)?
| | | | | | | | | |
☐a. Delay or Failure to Transmit Entries
| | | | | |
☐b. Payment Upon Acceptance of Entries
| | | | |
☐c. Duty to Pay ODFI
| | | |
☐d. Choice of Law - CORRECT ANSWER✔✔-D
| | | | | |
First Bank received a credit return entry as R02 (Account Closed) for $35,000 two
| | | | | | | | | | | | | |
weeks after the original transaction was transmitted to the Receiver. First Bank
| | | | | | | | | | | |
, feels that the RDFI (Oceans Bank) owes them interest and penalties for failing to
| | | | | | | | | | | | | |
return the credit entry timely. What is the minimum dollar amount of loss
| | | | | | | | | | | | |
suffered to file a claim for compensation?
| | | | | |
☐a. $250|
☐b. $100|
☐c. $150|
☐d. $200 - CORRECT ANSWER✔✔-D
| | | |
Anthony opened his checking account with Northern Bank in February. In the
| | | | | | | | | | | |
initial disclosures provided by Northern Bank upon account opening, the ATM fee
| | | | | | | | | | | |
was clearly stated as being $3.00 per transaction. Effective October 1, the fee for
| | | | | | | | | | | | | |
using an ATM will increase to $3.50. According to Regulation E, how many days
| | | | | | | | | | | | | |
prior notice is required when there is a change to the initial disclosures which
| | | | | | | | | | | | | |
results in greater consumer liability?
| | | |
☐a. 21 days
| |
☐b. 30 days
| |
☐c. 15 days
| |
☐d. 10 days - CORRECT ANSWER✔✔-A
| | | | |
According to an original authorization between Georgia and her health club, the
| | | | | | | | | | | |
monthly membership dues are $35.00 each month. The health club must increase
| | | | | | | | | | |
their monthly membership dues to $40.00 each month to cover increasing costs
| | | | | | | | | | | | |
due to the economy. Which of the following regulations requires the health club
| | | | | | | | | | | | |
to provide a 10-day notice when there is a change in dollar amount of the original
| | | | | | | | | | | | | | |
authorization?
|
☐a. Regulation D
| |
☐b. Regulation E
| |
