AAP practice exam questions with correct
answers
Reinitiated entries must be identified by 'RETRY PYMT' in the - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Company Entry Description field | | |
if an ODFI receives a letter from NACHA regarding an Originator that has
| | | | | | | | | | | | |
exceeded the Unauthorized Return Rate Threshold, it must respond within -
| | | | | | | | | | |
CORRECT ANSWER✔✔-10 banking days | | |
which rule or regulations governs the processing of federal government ACH
| | | | | | | | | | |
payments - CORRECT ANSWER✔✔-title 31 code of federal regulations part 210
| | | | | | | | | |
A consumer contacts his RDFI on October 4 claiming a TEL entry that appeared on
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his September 4 statement was never authorized by him. What action should the
| | | | | | | | | | | | |
RDFI take first - CORRECT ANSWER✔✔-have him complete a Written statement
| | | | | | | | | | | |
of Unauthorized debit
| |
when an ODFI utilizes a third-party service provider (ie sending point) in the
| | | | | | | | | | | | |
origination process, which party warrants the entries are authorized - CORRECT
| | | | | | | | | | |
ANSWER✔✔-ODFI
Direct access is defined as - CORRECT ANSWER✔✔-An Originator or a third party
| | | | | | | | | | | | |
that transmits ACH files directly to an ACH Operator using a financial institution's
| | | | | | | | | | | | |
routing number and settlement account
| | | |
,included in an ODFI's Written response to NACHA regarding an Originator who
| | | | | | | | | | | |
has has exceeded a return rate threshold or level is a plan for reducing the return
| | | | | | | | | | | | | | | |
rate to below the threshold and/or level within - CORRECT ANSWER✔✔-30
| | | | | | | | | | |
calendar days of NACHS's request | | | |
which settlement is true regarding return processing in a same-day environment -
| | | | | | | | | | |
CORRECT ANSWER✔✔-RDFIs may send same day returns regardless of whether
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the forward item was a Same Day Entry
| | | | | | |
A Participating DFI must keep records of all ACH entries for - CORRECT
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ANSWER✔✔-6 years |
inbound IAT debit transactions used to fund a beneficiary residing outside of the
| | | | | | | | | | | | |
U.S. must identify the ultimate beneficiary in the - CORRECT ANSWER✔✔-
| | | | | | | | | |
remittances addenda record | |
a reclamation entry is subordinate to claims or potential claims by which entity -
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CORRECT ANSWER✔✔-Veterans Administration| |
SmallTown Bank has contracted with MegaBank to process its ACH files. Because
| | | | | | | | | | | |
of this relationship, Smalltown Bank is exposed to - CORRECT ANSWER✔✔-Third-
| | | | | | | | | |
party risk |
what is the difference between the Fedwire Funds Service and Fedwire Securities
| | | | | | | | | | | |
Service - CORRECT ANSWER✔✔-Fedwire Funds is a credit/push system;Fedwire
| | | | | | | | |
Securities is a debit/pull system. | | | |
, which of the following does not govern checks and check collection - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-regulation E |
a VAN is best described as a - CORRECT ANSWER✔✔-communications network
| | | | | | | | | | |
for sending and receiving data
| | | |
which of the following checks is eligible to be converted to an ARC, POP or BOC
| | | | | | | | | | | | | | | |
entry - CORRECT ANSWER✔✔-consumers check in the amount of $25,000
| | | | | | | | |
which of the following emerging payments is considered a closed loop network -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Dwolla |
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount
| | | | | | | | | | | | | | |
equal to or less than - CORRECT ANSWER✔✔-2,500
| | | | | | |
an Originator goes out of business before its ODFI is able to change back a debit
| | | | | | | | | | | | | | | |
entry that was returned as NSF this scenario represents what type of risk to ODFI
| | | | | | | | | | | | | |
- CORRECT ANSWER✔✔-credit risk
| | | |
which card payment system participant is responsible for representing merchants
| | | | | | | | | |
in accepting card transactions - CORRECT ANSWER✔✔-Acquirer
| | | | | |
which ACH record contains the Company Entry Description field - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Company/Batch Header Record | |
answers
Reinitiated entries must be identified by 'RETRY PYMT' in the - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Company Entry Description field | | |
if an ODFI receives a letter from NACHA regarding an Originator that has
| | | | | | | | | | | | |
exceeded the Unauthorized Return Rate Threshold, it must respond within -
| | | | | | | | | | |
CORRECT ANSWER✔✔-10 banking days | | |
which rule or regulations governs the processing of federal government ACH
| | | | | | | | | | |
payments - CORRECT ANSWER✔✔-title 31 code of federal regulations part 210
| | | | | | | | | |
A consumer contacts his RDFI on October 4 claiming a TEL entry that appeared on
| | | | | | | | | | | | | |
his September 4 statement was never authorized by him. What action should the
| | | | | | | | | | | | |
RDFI take first - CORRECT ANSWER✔✔-have him complete a Written statement
| | | | | | | | | | | |
of Unauthorized debit
| |
when an ODFI utilizes a third-party service provider (ie sending point) in the
| | | | | | | | | | | | |
origination process, which party warrants the entries are authorized - CORRECT
| | | | | | | | | | |
ANSWER✔✔-ODFI
Direct access is defined as - CORRECT ANSWER✔✔-An Originator or a third party
| | | | | | | | | | | | |
that transmits ACH files directly to an ACH Operator using a financial institution's
| | | | | | | | | | | | |
routing number and settlement account
| | | |
,included in an ODFI's Written response to NACHA regarding an Originator who
| | | | | | | | | | | |
has has exceeded a return rate threshold or level is a plan for reducing the return
| | | | | | | | | | | | | | | |
rate to below the threshold and/or level within - CORRECT ANSWER✔✔-30
| | | | | | | | | | |
calendar days of NACHS's request | | | |
which settlement is true regarding return processing in a same-day environment -
| | | | | | | | | | |
CORRECT ANSWER✔✔-RDFIs may send same day returns regardless of whether
| | | | | | | | | | |
the forward item was a Same Day Entry
| | | | | | |
A Participating DFI must keep records of all ACH entries for - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-6 years |
inbound IAT debit transactions used to fund a beneficiary residing outside of the
| | | | | | | | | | | | |
U.S. must identify the ultimate beneficiary in the - CORRECT ANSWER✔✔-
| | | | | | | | | |
remittances addenda record | |
a reclamation entry is subordinate to claims or potential claims by which entity -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-Veterans Administration| |
SmallTown Bank has contracted with MegaBank to process its ACH files. Because
| | | | | | | | | | | |
of this relationship, Smalltown Bank is exposed to - CORRECT ANSWER✔✔-Third-
| | | | | | | | | |
party risk |
what is the difference between the Fedwire Funds Service and Fedwire Securities
| | | | | | | | | | | |
Service - CORRECT ANSWER✔✔-Fedwire Funds is a credit/push system;Fedwire
| | | | | | | | |
Securities is a debit/pull system. | | | |
, which of the following does not govern checks and check collection - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-regulation E |
a VAN is best described as a - CORRECT ANSWER✔✔-communications network
| | | | | | | | | | |
for sending and receiving data
| | | |
which of the following checks is eligible to be converted to an ARC, POP or BOC
| | | | | | | | | | | | | | | |
entry - CORRECT ANSWER✔✔-consumers check in the amount of $25,000
| | | | | | | | |
which of the following emerging payments is considered a closed loop network -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Dwolla |
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount
| | | | | | | | | | | | | | |
equal to or less than - CORRECT ANSWER✔✔-2,500
| | | | | | |
an Originator goes out of business before its ODFI is able to change back a debit
| | | | | | | | | | | | | | | |
entry that was returned as NSF this scenario represents what type of risk to ODFI
| | | | | | | | | | | | | |
- CORRECT ANSWER✔✔-credit risk
| | | |
which card payment system participant is responsible for representing merchants
| | | | | | | | | |
in accepting card transactions - CORRECT ANSWER✔✔-Acquirer
| | | | | |
which ACH record contains the Company Entry Description field - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Company/Batch Header Record | |
