Wespay AAP Practice Exam Questions With
Correct Answers
1. The ____________________ is a processing and delivery system that provides
| | | | | | | | | | |
for the distribution and settlement of electronic credits and debits among
| | | | | | | | | | |
financial institutions. - CORRECT ANSWER✔✔-ACH Network
| | | | |
2. The ACH movement began in the early ____________________ when a group
| | | | | | | | | | | |
of California bankers formed the Special Committee on Paperless Entries (SCOPE).
| | | | | | | | | |
- CORRECT ANSWER✔✔-1970s
| | |
3. In 1974, __________________was formed to coordinate the ACH movement
| | | | | | | | | |
nationwide. - CORRECT ANSWER✔✔-(National Automated Clearing House
| | | | | | |
Association)
4. The main benefits associated with the use of the ACH network are
| | | | | | | | | | | | |
__________________________ and improved productivity over paper check | | | | | | |
transactions. - CORRECT ANSWER✔✔-cost reduction | | | |
5. ACH Operators may be private companies or the Federal Reserve Bank. The
| | | | | | | | | | | | |
current private sector operator is the
| | | | | |
______________________________________. - CORRECT ANSWER✔✔- | | |
Electronic Payments Network. | |
6. ______________________________________provide management,
| | |
education, assistance, and services to link all types of financial institutions
| | | | | | | | | | |
,(commercial banks, savings banks and credit unions) across the United States. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Regional Payments Associations
| | |
7. The ACH system is a __________________________________, store-and-
| | | | | | |
forward system. Transactions received by the financial institution during the day
| | | | | | | | | | |
are stored and processed later in a batch mode. - CORRECT ANSWER✔✔-batch
| | | | | | | | | | | |
processing
8. The ____________________________ is the entity that agrees to initiate ACH
| | | | | | | | | | |
Entries into the payment system according to an arrangement with a Receiver. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Originator |
9. An ___________________________________ is the central clearing facility
| | | | | | | |
operated by a private organization or a Federal Reserve Bank (FRB) on behalf of
| | | | | | | | | | | | | |
DFIs to or from which participating DFIs transmit or receive ACH Entries. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Automated Clearing House Operator
| | | |
10. The _________________________________________ is the institution that
| | | | | | |
receives payment instructions from the
| | | | |
____________________________________and forwards Entries to the ACH | | | | | |
Operator. - CORRECT ANSWER✔✔-Originating Depository Financial Institution
| | | | | |
Originator
11. A ______________________ is a natural person or an organization that has
| | | | | | | | | | | |
authorized an Originator to initiate an ACH Entry to its account with the RDFI. A
| | | | | | | | | | | | | | |
____________________________ can either be a company or a consumer, | | | | | | | | |
depending on the type of transaction. - CORRECT ANSWER✔✔-Receiver
| | | | | | | |
,12. Unlike a check, which is always a debit instrument, an ACH Entry may be
| | | | | | | | | | | | | | |
either a ________________________ or a ____________________________
| | | | | |
Entry. - CORRECT ANSWER✔✔-credit
| | |
debit
13. Dividends, payrolls and government vendor payments are examples of ACH
| | | | | | | | | | |
__________. - CORRECT ANSWER✔✔-credits | | |
14. Before any transaction is initiated, the Originator and ODFI execute an
| | | | | | | | | | | |
_____________________________ to use the ACH network to originate | | | | | | | |
payments. - CORRECT ANSWER✔✔-agreement
| | |
The ______________________________ should bind the originating company to
| | | | | | | |
the _________________________, define the parameters of the relationship
| | | | | | | |
between the two parties, identify processing requirements for the specific
| | | | | | | | | |
application(s), and establish liability and accountability for procedures related to
| | | | | | | | | |
certain application(s). - CORRECT ANSWER✔✔-agreement
| | | |
NACHA Operating Rules
| |
16. The __________________ is one of the world's oldest forms of payment, and
| | | | | | | | | | | | |
today exists as one of the most common methods of payment, both in the United
| | | | | | | | | | | | | |
States and internationally. - CORRECT ANSWER✔✔-Check
| | | | | |
17. The traditional Check is a ____________________ payment instrument that is
| | | | | | | | | |
widely accepted and used by businesses, governments, and consumers as
| | | | | | | | | | |
payment for virtually a form of commerce. - CORRECT ANSWER✔✔-debit
| | | | | | | | |
, 18. A distinguishing characteristic of Fedwire is that it is a real-time, gross-
| | | | | | | | | | | |
settlement system which operates in a real-time environment if it processes each
| | | | | | | | | | | |
transaction as it is initiated, rather than _______________________ by
| | | | | | | | |
__________________________. - CORRECT ANSWER✔✔-processing | | |
batch
19. The Fedwire Securities are held and transferred in
| | | | | | | | |
_________________________ form known as Book-Entry Securities; unlike the | | | | | | | |
Fedwire Funds Service, the Fedwire Securities Service is a
| | | | | | | | |
___________________________________ system with regard to payments. - | | | | | | |
CORRECT ANSWER✔✔-electronic |
debit/pull
20. The Fedwire Funds Service is a _______________________system in which
| | | | | | | | | |
only the Originator's financial institution can remove funds from its Federal
| | | | | | | | | | |
Reserve account. - CORRECT ANSWER✔✔-credit/push
| | | |
21. _________________________________________ are not true payment
| | | | | |
instruments because they do not result in a direct transfer of funds from the
| | | | | | | | | | | | | |
Payor to the Payee. - CORRECT ANSWER✔✔-Credit cards
| | | | | | |
22. _____________________________________________ are used by
| | | | |
consumers at ATMs to withdraw cash from their accounts and may be used as a
| | | | | | | | | | | | | | |
means of electronic payment, either on-line or off-line, for goods or services
| | | | | | | | | | | |
purchased at a retail establishment. - CORRECT ANSWER✔✔-Debit cards
| | | | | | | |
23. Unlike a ____________________________ card, where the cost of goods is
| | | | | | | | | | |
charged to an account that is paid later and to which interest may be applied, the
| | | | | | | | | | | | | | |
Correct Answers
1. The ____________________ is a processing and delivery system that provides
| | | | | | | | | | |
for the distribution and settlement of electronic credits and debits among
| | | | | | | | | | |
financial institutions. - CORRECT ANSWER✔✔-ACH Network
| | | | |
2. The ACH movement began in the early ____________________ when a group
| | | | | | | | | | | |
of California bankers formed the Special Committee on Paperless Entries (SCOPE).
| | | | | | | | | |
- CORRECT ANSWER✔✔-1970s
| | |
3. In 1974, __________________was formed to coordinate the ACH movement
| | | | | | | | | |
nationwide. - CORRECT ANSWER✔✔-(National Automated Clearing House
| | | | | | |
Association)
4. The main benefits associated with the use of the ACH network are
| | | | | | | | | | | | |
__________________________ and improved productivity over paper check | | | | | | |
transactions. - CORRECT ANSWER✔✔-cost reduction | | | |
5. ACH Operators may be private companies or the Federal Reserve Bank. The
| | | | | | | | | | | | |
current private sector operator is the
| | | | | |
______________________________________. - CORRECT ANSWER✔✔- | | |
Electronic Payments Network. | |
6. ______________________________________provide management,
| | |
education, assistance, and services to link all types of financial institutions
| | | | | | | | | | |
,(commercial banks, savings banks and credit unions) across the United States. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Regional Payments Associations
| | |
7. The ACH system is a __________________________________, store-and-
| | | | | | |
forward system. Transactions received by the financial institution during the day
| | | | | | | | | | |
are stored and processed later in a batch mode. - CORRECT ANSWER✔✔-batch
| | | | | | | | | | | |
processing
8. The ____________________________ is the entity that agrees to initiate ACH
| | | | | | | | | | |
Entries into the payment system according to an arrangement with a Receiver. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Originator |
9. An ___________________________________ is the central clearing facility
| | | | | | | |
operated by a private organization or a Federal Reserve Bank (FRB) on behalf of
| | | | | | | | | | | | | |
DFIs to or from which participating DFIs transmit or receive ACH Entries. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Automated Clearing House Operator
| | | |
10. The _________________________________________ is the institution that
| | | | | | |
receives payment instructions from the
| | | | |
____________________________________and forwards Entries to the ACH | | | | | |
Operator. - CORRECT ANSWER✔✔-Originating Depository Financial Institution
| | | | | |
Originator
11. A ______________________ is a natural person or an organization that has
| | | | | | | | | | | |
authorized an Originator to initiate an ACH Entry to its account with the RDFI. A
| | | | | | | | | | | | | | |
____________________________ can either be a company or a consumer, | | | | | | | | |
depending on the type of transaction. - CORRECT ANSWER✔✔-Receiver
| | | | | | | |
,12. Unlike a check, which is always a debit instrument, an ACH Entry may be
| | | | | | | | | | | | | | |
either a ________________________ or a ____________________________
| | | | | |
Entry. - CORRECT ANSWER✔✔-credit
| | |
debit
13. Dividends, payrolls and government vendor payments are examples of ACH
| | | | | | | | | | |
__________. - CORRECT ANSWER✔✔-credits | | |
14. Before any transaction is initiated, the Originator and ODFI execute an
| | | | | | | | | | | |
_____________________________ to use the ACH network to originate | | | | | | | |
payments. - CORRECT ANSWER✔✔-agreement
| | |
The ______________________________ should bind the originating company to
| | | | | | | |
the _________________________, define the parameters of the relationship
| | | | | | | |
between the two parties, identify processing requirements for the specific
| | | | | | | | | |
application(s), and establish liability and accountability for procedures related to
| | | | | | | | | |
certain application(s). - CORRECT ANSWER✔✔-agreement
| | | |
NACHA Operating Rules
| |
16. The __________________ is one of the world's oldest forms of payment, and
| | | | | | | | | | | | |
today exists as one of the most common methods of payment, both in the United
| | | | | | | | | | | | | |
States and internationally. - CORRECT ANSWER✔✔-Check
| | | | | |
17. The traditional Check is a ____________________ payment instrument that is
| | | | | | | | | |
widely accepted and used by businesses, governments, and consumers as
| | | | | | | | | | |
payment for virtually a form of commerce. - CORRECT ANSWER✔✔-debit
| | | | | | | | |
, 18. A distinguishing characteristic of Fedwire is that it is a real-time, gross-
| | | | | | | | | | | |
settlement system which operates in a real-time environment if it processes each
| | | | | | | | | | | |
transaction as it is initiated, rather than _______________________ by
| | | | | | | | |
__________________________. - CORRECT ANSWER✔✔-processing | | |
batch
19. The Fedwire Securities are held and transferred in
| | | | | | | | |
_________________________ form known as Book-Entry Securities; unlike the | | | | | | | |
Fedwire Funds Service, the Fedwire Securities Service is a
| | | | | | | | |
___________________________________ system with regard to payments. - | | | | | | |
CORRECT ANSWER✔✔-electronic |
debit/pull
20. The Fedwire Funds Service is a _______________________system in which
| | | | | | | | | |
only the Originator's financial institution can remove funds from its Federal
| | | | | | | | | | |
Reserve account. - CORRECT ANSWER✔✔-credit/push
| | | |
21. _________________________________________ are not true payment
| | | | | |
instruments because they do not result in a direct transfer of funds from the
| | | | | | | | | | | | | |
Payor to the Payee. - CORRECT ANSWER✔✔-Credit cards
| | | | | | |
22. _____________________________________________ are used by
| | | | |
consumers at ATMs to withdraw cash from their accounts and may be used as a
| | | | | | | | | | | | | | |
means of electronic payment, either on-line or off-line, for goods or services
| | | | | | | | | | | |
purchased at a retail establishment. - CORRECT ANSWER✔✔-Debit cards
| | | | | | | |
23. Unlike a ____________________________ card, where the cost of goods is
| | | | | | | | | | |
charged to an account that is paid later and to which interest may be applied, the
| | | | | | | | | | | | | | |
