APRP SOLVED QUESTIONS WITH CORRECT ANSWERS
✔✔Which of the following should a financial institution have written procedures for? -
✔✔Information Security ; Vendor Management ; Account holder privacy ; Account
opening
Answer: Account opening
✔✔Committee of Sponsoring Organizations (COSO) is a: - ✔✔Voluntary private sector
organization dedicated to improving the quality of financial reporting?
✔✔Which policy or procedure outlines the documentation required from customers at
account opening? - ✔✔Customer Identification Program (CIP)
✔✔Which statement is true regarding the processing and settlement of Credit and
signature-based Debit Cards? - ✔✔Process in batch mode at the POS, settle at the end
of each day
✔✔Which of the following situations increases ad ODFI's exposure to Fraud Risk? -
✔✔Allowing a Third-Party Sender to send files directly to the ACH Operator
✔✔Who is responsible for providing direction, establishing corporate management
related policies and assistance to the CEO in guiding an Organization? - ✔✔Board of
Directors
✔✔Which payment system is a processing and delivery system that provides for the
distribution and settlement among financial institutions of electronic debits and credits,
non-monetary entires, and payment-related information? - ✔✔ACH
✔✔A financial institution fails to send a wire transfer on behalf of its account holder
before the Fedwire Funds Service closes. Aside from Operational Risk, what other risk
might they be exposed to? - ✔✔Reputation Risk
✔✔Which federal regulation governs the treatment of consumer non-public personal
information by financial institutions? - ✔✔Regulation P
✔✔Which of the following is an environmental control that could be used to securely
store data? - ✔✔Password ; Fire protection ; Locked room ; Biometrics
Answer: Fire protection
, ✔✔What step in the development of a Business Continuity Plan (BCP) involves
assessing and prioritizing all business functions and processes? - ✔✔Business Impact
Analysis
✔✔A credit card issuer fails to disclose the maximum interest rates to a customer. What
type of risk does this represent? - ✔✔Compliance Risk
✔✔Which of the following is a component of internal control under the COSO ERM
integrated framework? - ✔✔Operational objectives ; Operating unit ; Risk assessment ;
Reporting objectives
Answer: Risk assessment
✔✔Which of these risks are greater for ODFIs than RDFIs? - ✔✔Fraud Risk and Credit
Risk
✔✔The Acquirer in the card payments system is known as: - ✔✔A financial institution
that represents Merchants in accepting POS transactions.
✔✔Sally entered her logon ID and password to access her online banking info, what
type of authentication is being used? - ✔✔Single-factor authentication
✔✔What type of risk occurs when there is movement of fraudulent transactions from
one payments channel to another? - ✔✔Cross-channel Risk
✔✔A financial institution restricted access to its wire operations area to only those
personnel responsible for processing wire transfers. What type of security controls do
they have in place? - ✔✔Environmental controls ; Physical controls; Logical controls ;
Network controls
Answer: Physical controls
✔✔Which of the following RDC implementations represents the least risk and
complexity to a financial institution? - ✔✔Branch capture
✔✔An originator duplicates an ACH file, and then initiates a reverse debiting file outside
of the established timeframe within the NACHA Operating Rules. Several Debits are
returned NSF. Aside from Operational Risk, what other types of risk are present? -
✔✔Compliance and Credit Risk
✔✔Jack authorized the Water Dept to debit his account for his monthly water bill. What
role do Jack and the Water Dept play in the ACH transaction? - ✔✔Jack = Receiver ;
Water Dept = Originator
✔✔Which of the following should a financial institution have written procedures for? -
✔✔Information Security ; Vendor Management ; Account holder privacy ; Account
opening
Answer: Account opening
✔✔Committee of Sponsoring Organizations (COSO) is a: - ✔✔Voluntary private sector
organization dedicated to improving the quality of financial reporting?
✔✔Which policy or procedure outlines the documentation required from customers at
account opening? - ✔✔Customer Identification Program (CIP)
✔✔Which statement is true regarding the processing and settlement of Credit and
signature-based Debit Cards? - ✔✔Process in batch mode at the POS, settle at the end
of each day
✔✔Which of the following situations increases ad ODFI's exposure to Fraud Risk? -
✔✔Allowing a Third-Party Sender to send files directly to the ACH Operator
✔✔Who is responsible for providing direction, establishing corporate management
related policies and assistance to the CEO in guiding an Organization? - ✔✔Board of
Directors
✔✔Which payment system is a processing and delivery system that provides for the
distribution and settlement among financial institutions of electronic debits and credits,
non-monetary entires, and payment-related information? - ✔✔ACH
✔✔A financial institution fails to send a wire transfer on behalf of its account holder
before the Fedwire Funds Service closes. Aside from Operational Risk, what other risk
might they be exposed to? - ✔✔Reputation Risk
✔✔Which federal regulation governs the treatment of consumer non-public personal
information by financial institutions? - ✔✔Regulation P
✔✔Which of the following is an environmental control that could be used to securely
store data? - ✔✔Password ; Fire protection ; Locked room ; Biometrics
Answer: Fire protection
, ✔✔What step in the development of a Business Continuity Plan (BCP) involves
assessing and prioritizing all business functions and processes? - ✔✔Business Impact
Analysis
✔✔A credit card issuer fails to disclose the maximum interest rates to a customer. What
type of risk does this represent? - ✔✔Compliance Risk
✔✔Which of the following is a component of internal control under the COSO ERM
integrated framework? - ✔✔Operational objectives ; Operating unit ; Risk assessment ;
Reporting objectives
Answer: Risk assessment
✔✔Which of these risks are greater for ODFIs than RDFIs? - ✔✔Fraud Risk and Credit
Risk
✔✔The Acquirer in the card payments system is known as: - ✔✔A financial institution
that represents Merchants in accepting POS transactions.
✔✔Sally entered her logon ID and password to access her online banking info, what
type of authentication is being used? - ✔✔Single-factor authentication
✔✔What type of risk occurs when there is movement of fraudulent transactions from
one payments channel to another? - ✔✔Cross-channel Risk
✔✔A financial institution restricted access to its wire operations area to only those
personnel responsible for processing wire transfers. What type of security controls do
they have in place? - ✔✔Environmental controls ; Physical controls; Logical controls ;
Network controls
Answer: Physical controls
✔✔Which of the following RDC implementations represents the least risk and
complexity to a financial institution? - ✔✔Branch capture
✔✔An originator duplicates an ACH file, and then initiates a reverse debiting file outside
of the established timeframe within the NACHA Operating Rules. Several Debits are
returned NSF. Aside from Operational Risk, what other types of risk are present? -
✔✔Compliance and Credit Risk
✔✔Jack authorized the Water Dept to debit his account for his monthly water bill. What
role do Jack and the Water Dept play in the ACH transaction? - ✔✔Jack = Receiver ;
Water Dept = Originator
