APRP 2023 Exam Review Sample Test QUESTIONS
WITH COMPLETE SOLUTIONS
A check is not considered a negotiable instrument under Regulation CC if it... correct answer: Is not printed with MICR Ink
FedWire Funds are final and irrevocable upon completion of processing by the... correct answer: Federal Reserve Banks
A security procedure is not considered commercially reasonable for a wire transfer if... correct answer: The security procedure is
only compared to a signature
Real-time Payments (RTP) allows a financial institution to limit its exposure risk by... correct answer: Utilizing prefunding
The duration of exposure risk for a financial institution when originating ACH debit entries is correct answer: the period from
when entries are released to the ACH Operator, through the time
entries can no longer be returned by the RDFI
Establishes net debit caps on the amount of Reserve Bank daylight credit that a depository institution may use during a single day or over a 2 week reserve maintenance period. correct answer: Payment System Risk Policy
Requires a paying bank return a check such that it is received by
the BOFD by 2:00pm local time on the 2nd business day following the date of presentment? correct answer: Reg CC expeditious return Enterprise Risk Management is (COSO) correct answer: The culture, capabilities, and practices that organizations integrate within their strategy to manage risk and preserve and realize value
an effective BSA/AML/OFAC compliance program consists of... correct answer: Board approved written policies, procedures and processes to prevent money laundering and terrorist financing
The amount of risk, on a broad level, an entity is willing to accept in the pursuit of value correct answer: Risk appetite
UCC: BOFD is liable for a warranty breach claim for forged/missing endorsement for how long? correct answer: 3 years from cash letter date
FFIEC: First step in business continuity process correct answer: Development of a Business Impact Analysis
Scope of required Physical and Information Security Procedures depends on... correct answer: Size and complexity of the institutions IT operations and the variety of functions performed by IT operations.
IT and Security Policy should address... correct answer: Key areas such as personnel, capital investment, physical and logical security, change management, strategic planning, business continuity
WITH COMPLETE SOLUTIONS
A check is not considered a negotiable instrument under Regulation CC if it... correct answer: Is not printed with MICR Ink
FedWire Funds are final and irrevocable upon completion of processing by the... correct answer: Federal Reserve Banks
A security procedure is not considered commercially reasonable for a wire transfer if... correct answer: The security procedure is
only compared to a signature
Real-time Payments (RTP) allows a financial institution to limit its exposure risk by... correct answer: Utilizing prefunding
The duration of exposure risk for a financial institution when originating ACH debit entries is correct answer: the period from
when entries are released to the ACH Operator, through the time
entries can no longer be returned by the RDFI
Establishes net debit caps on the amount of Reserve Bank daylight credit that a depository institution may use during a single day or over a 2 week reserve maintenance period. correct answer: Payment System Risk Policy
Requires a paying bank return a check such that it is received by
the BOFD by 2:00pm local time on the 2nd business day following the date of presentment? correct answer: Reg CC expeditious return Enterprise Risk Management is (COSO) correct answer: The culture, capabilities, and practices that organizations integrate within their strategy to manage risk and preserve and realize value
an effective BSA/AML/OFAC compliance program consists of... correct answer: Board approved written policies, procedures and processes to prevent money laundering and terrorist financing
The amount of risk, on a broad level, an entity is willing to accept in the pursuit of value correct answer: Risk appetite
UCC: BOFD is liable for a warranty breach claim for forged/missing endorsement for how long? correct answer: 3 years from cash letter date
FFIEC: First step in business continuity process correct answer: Development of a Business Impact Analysis
Scope of required Physical and Information Security Procedures depends on... correct answer: Size and complexity of the institutions IT operations and the variety of functions performed by IT operations.
IT and Security Policy should address... correct answer: Key areas such as personnel, capital investment, physical and logical security, change management, strategic planning, business continuity
