APRP Questions/ 163 Quizzes & Ans/ A+ Score
Solution.
Originator - Answer: A company or individual that has been authorized by the Receiver to
initiate either a credit or debit ACH entry to their account.
Business Continuity Plan (BCP) - Answer: A comprehensive written plan to maintain or resume
business in the event of a disruption.
Encryption - Answer: A data security technique that encodes information so that data appears
as a meaningless string of letters and symbols during delivery or transmission.
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,Test Plan - Answer: A document based on the institution's test scope and objectives and
includes various test methods.
RDFI - Receiving Depository Financial Institution - Answer: A financial instituion that receives
ACH entries from the ACH Operator and posts the entries to the accounts of its depositors.
ODFI - Originating Depository Financial Institution - Answer: A financial institution that receives
payment instructions from Originators and forwards the entries to the ACH Operator.
Exposure Limits - Answer: A method used to mitigate credit risk, required by the ACH Rules
Debit Card - Answer: A payment card issued to a person for purchasing goods and services
thorugh an electronic transfer of funds from a dempand deposit account rather than using cash,
checks or drafts at the point-of-sale.
Cardholder - Answer: A person or entity that is issued a credit or debit account that is accessed
using a card.
API - Application Program Interface - Answer: A set of specifications, standards or conventions
that enable computer programs to exchange information.
Business Continuity Test/Disaster Recovery Exercise - Answer: A test of an institution's disaster
recovery plan or BCP.
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, Transaction Testing - Answer: A testing activity designed to validate the continuity of business
transactions and the replication of associated data.
Third-Party Service Provider - Answer: A third-party that processes ACH files and/or entries on
behalf of financial institutions and/or Originators.
Third Party Sender - Answer: A third-party that provides ACH services to the Originator, and, in
that capacity, acts as an intermediary between the Originator and ODFI.
DLT - Distributed Ledger Technology - Answer: A type of database that is consensually shared
and synchronized across nodes in a network spread across multiple sites, institutions or
geographies.
Clearing House - Answer: A voluntary association of depository institutions that facilitate the
clearing of checks or electronic items through the direct exchange of funds between members.
Vulnerability - Answer: A weakness in automated system security procedures, administrative
controls, physical layout, internal controls, etc that could be exploited to gain unauthorized
access to information or to disrupt critical processing.
Risk Tolerance - Answer: Acceptable level of variation relative to achievement of a specific
objective.
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Solution.
Originator - Answer: A company or individual that has been authorized by the Receiver to
initiate either a credit or debit ACH entry to their account.
Business Continuity Plan (BCP) - Answer: A comprehensive written plan to maintain or resume
business in the event of a disruption.
Encryption - Answer: A data security technique that encodes information so that data appears
as a meaningless string of letters and symbols during delivery or transmission.
Page 1 of 22
,Test Plan - Answer: A document based on the institution's test scope and objectives and
includes various test methods.
RDFI - Receiving Depository Financial Institution - Answer: A financial instituion that receives
ACH entries from the ACH Operator and posts the entries to the accounts of its depositors.
ODFI - Originating Depository Financial Institution - Answer: A financial institution that receives
payment instructions from Originators and forwards the entries to the ACH Operator.
Exposure Limits - Answer: A method used to mitigate credit risk, required by the ACH Rules
Debit Card - Answer: A payment card issued to a person for purchasing goods and services
thorugh an electronic transfer of funds from a dempand deposit account rather than using cash,
checks or drafts at the point-of-sale.
Cardholder - Answer: A person or entity that is issued a credit or debit account that is accessed
using a card.
API - Application Program Interface - Answer: A set of specifications, standards or conventions
that enable computer programs to exchange information.
Business Continuity Test/Disaster Recovery Exercise - Answer: A test of an institution's disaster
recovery plan or BCP.
Page 2 of 22
, Transaction Testing - Answer: A testing activity designed to validate the continuity of business
transactions and the replication of associated data.
Third-Party Service Provider - Answer: A third-party that processes ACH files and/or entries on
behalf of financial institutions and/or Originators.
Third Party Sender - Answer: A third-party that provides ACH services to the Originator, and, in
that capacity, acts as an intermediary between the Originator and ODFI.
DLT - Distributed Ledger Technology - Answer: A type of database that is consensually shared
and synchronized across nodes in a network spread across multiple sites, institutions or
geographies.
Clearing House - Answer: A voluntary association of depository institutions that facilitate the
clearing of checks or electronic items through the direct exchange of funds between members.
Vulnerability - Answer: A weakness in automated system security procedures, administrative
controls, physical layout, internal controls, etc that could be exploited to gain unauthorized
access to information or to disrupt critical processing.
Risk Tolerance - Answer: Acceptable level of variation relative to achievement of a specific
objective.
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