AAP PRACTICE LATEST ACTUAL EXAM WITH VERIFIED
QUESTIONS & CORRECT ANSWERS
Question 1.
Reinitiated entries must be identified by 'RETRY PYMT' in the
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
ANSWER
10 banking days
Question 3.
which rule or regulations governs the processing of federal government ACH payments
ANSWER
title 31 code of federal regulations part 210
Question 4.
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
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
ANSWER
ODFI
Question 6.
Direct access is defined as
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
1
,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
ANSWER
30 calendar days of NACHS's request
Question 8.
which settlement is true regarding return processing in a same-day environment
ANSWER
RDFIs may send same day returns regardless of was a Same Day Entry
Question 9.
A Participating DFI must keep records of all ACH entries for
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
ANSWER
remittances addenda record
Question 11.
a reclamation entry is subordinate to claims or potential claims by which entity
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
ANSWER
Third-party risk
2
, Question 13.
what is the difference between the Fedwire Funds Service and Fedwire Securities Service
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
ANSWER
regulation E
Question 15.
a VAN is best described as a
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
ANSWER
consumers check in the amount of $25,000
Question 17.
which of the following emerging payments is considered a closed loop network
ANSWER
Dwolla
Question 18.
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to or less
than
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
ANSWER
credit risk
3
QUESTIONS & CORRECT ANSWERS
Question 1.
Reinitiated entries must be identified by 'RETRY PYMT' in the
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
ANSWER
10 banking days
Question 3.
which rule or regulations governs the processing of federal government ACH payments
ANSWER
title 31 code of federal regulations part 210
Question 4.
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
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
ANSWER
ODFI
Question 6.
Direct access is defined as
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
1
,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
ANSWER
30 calendar days of NACHS's request
Question 8.
which settlement is true regarding return processing in a same-day environment
ANSWER
RDFIs may send same day returns regardless of was a Same Day Entry
Question 9.
A Participating DFI must keep records of all ACH entries for
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
ANSWER
remittances addenda record
Question 11.
a reclamation entry is subordinate to claims or potential claims by which entity
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
ANSWER
Third-party risk
2
, Question 13.
what is the difference between the Fedwire Funds Service and Fedwire Securities Service
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
ANSWER
regulation E
Question 15.
a VAN is best described as a
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
ANSWER
consumers check in the amount of $25,000
Question 17.
which of the following emerging payments is considered a closed loop network
ANSWER
Dwolla
Question 18.
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to or less
than
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
ANSWER
credit risk
3
