A-35 Certificate of Fitness Exam Study Guide Solved Correctly Latest Update 2027, Graded A

AAP practice exam questions Solved Correctly Latest Update
2027, Graded A+

Question 1.
Reinitiated entries must be identified by 'RETRY PYMT' in the

Correct Answer: Company Entry Description field


Question 2.
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


Question 3.
which rule or regulations governs the processing of federal government ACH payments

Correct Answer: title 31 code of federal regulations part 210


Question 4.
A consumer contacts his RDFI on October 4 claim- ing 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


Question 5.
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


Question 6.
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

,Question 7.
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


Question 8.
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


Question 9.
A Participating DFI must keep records of all ACH entries for

Correct Answer: 6 years


Question 10.
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


Question 11.
a reclamation entry is subordinate to claims or potential claims by which entity

Correct Answer: Veterans Administration


Question 12.
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


Question 13.
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.

, Question 14.
which of the following does not govern checks and check collection

Correct Answer: regulation E


Question 15.
a VAN is best described as a

Correct Answer: communications network for sending and receiving data


Question 16.
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


Question 17.
which of the following emerging payments is considered a closed loop network

Correct Answer: Dwolla


Question 18.
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to or
less than

Correct Answer: 2,500


Question 19.
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


Question 20.
which card payment system participant is responsible for representing merchants in
accepting card transactions

Correct Answer: Acquirer


Question 21.
which ACH record contains the Company Entry Description field

Correct Answer: Company/Batch Header Record