AAP Exam Practice Questions and Answers 100% Pass

AAP Exam Practice Questions and Answers 100% Pass Which of the following specify the requirements for reserves that a depository institution must maintain at a Federal Reserve Bank? a. Uniform Commercial Code Article 4A b. Federal Reserve Bank Operating Circular 4 c. Regulation D d. Regulation CC - Regulation D Which of the following specifically addresses national banks and their need to evaluate large dollar payment system network risks and requires reporting this to top management and maintaining agreements with all parties that they do business with? a. OCC Banking Circular 235 b. UCC 4 c. Regulation Z d. UCC 4A - OCC Banking Circular 235 2 | P a g e Katelyn Whitman© 2025, All Rights Reserved. When an Originator is initiating an MTE, POS, SHR entry where a personal identification number (PIN) is required in connection with the authorization, the Originator MUST comply with: - ANSI ASC X9.8 Standards Which of the following payment systems is referred to as real-time and gross settlement? a. Fedwire Funds Transfer b. Check Processing System c. Debit Card Network d. ACH Network - Fedwire Funds Transfer Choose the correct description of the Acquirer in the card network system: a. The entity that has agreed to accept credit and debit cards for the purchase of goods and services b. The entity that issues a credit or debit card to the card holder c. A financial institution that represents merchants in accepting POS transactions d. The network that provides switching facilities for the card transactions - A financial institution that represents merchants in accepting POS transactions Which of the following lists the participants in check processing order? 3 | P a g e Katelyn Whitman© 2025, All Rights Reserved. a. Payor/Payee/Receiver/Paying Bank b. Payee/Bank of First Deposit/Correspondent Bank/Paying Bank c. Payor/Payee/Payee's FI/Payor's FI/Correspondent Bank d. Payor/Payee/Merchant/ODFI/RDFI - Payee>Bank of First Deposit>Correspondent Bank> Paying Bank An unauthorized entry is transmitted into the ACH Networkby County Council Credit Union, there are financial losses involved and County Council Credit Union and the RDFI (State Bank) cannot come to an agreement as to who should be paying what amount of money and to whom. What is the minimum amount of dispute BEFORE a complaint can be filed to initiate an arbitration proceeding? a. $200 b. $250 c. $1,000 d. $2,500 - $250 Blue Sky Bank does ACH origination for two local companies in town. The bank has agreements in place with the two originators in which it provides the necessary disclosures for UCC Article 4A as required by the NACHA Operating Rules. Which provision of the UCC Article 4A can be varied by agreement (with disclosure to Originator)? 4 | P a g e Katelyn Whitman© 2025, All Rights Reserved. a. Delay or Failure to Transmit Entries b. Payment Upon Acceptance of Entries c. Duty to Pay ODFI d. Choice of Law - Choice of Law First Bank received a credit return entry R02 (Account closed) for $35,000 two weeks after the original transaction was transmitted to the Receiver. First Bank feels that the RDFI (Oceans Bank) owes them interest and penalties for failing to return the credit entry timely. What is the minimum dollar amount of loss suffered to file a claim for compensation? - $200 Anthony opened his checking account with Northern Bank in February. In the initial disclosures provided by Northern Bank upon opening, the ATM fee was clearly stated as being $3.00 per transaction. Effective October 1, the fee for using the ATM will increase to $3.50. According to Regulation E, how many days prior notice is required when there is a change to the initial disclosures which result in greater consumer liability? a. 21 days b. 30 days c. 15 days d. 10 days - 21 Days 5 | P a g e Katelyn Whitman© 2025, All Rights Reserved. According to an original authorization between Georgia and her health club, the monthly membership dues are $35.00 each month. The health club must increase their monthly membership to $40.00 each month to cover increasing costs due to the economy. Which of the following regulations requires the health club to provide a 10- day notice when there is change in dollar amount of the original authorization? - Regulation E The pastor at a local church passes away and the president at Lake Area Credit Union attends the funeral. The president relays this information to the credit union as the pastor was an account holder who was receiving government benefit payments. Which of the following would be a method by the RDFI to officially notify a Federal Government Agency of the death of a federal government payment recipient? - R14 or R15 by returning a post-death benefit Regulation E does NOT apply to which of the following ACH products identified by SEC code)? a. ARC, POP, BOC b. RCK, CCD, CTX c. BOC, PPD, WEB d. PPD, WEB, TEL - RCK, CCD, CTX Which of the following is true relating to an IAT (International ACH Transaction) entry? 6 | P a g e Katelyn Whitman© 2025, All Rights Reserved. a. 7 mandatory and up to 7 optional (maximum of 14 addenda records) b. 7 mandatory, 2 mandatory remittance and 5 optional foreign correspondent (maximum of 14 addenda records) c. 7 mandatory, 2 optional remittance, 5 optional foreign correspondent (only a combined maximum of 12 addenda records) d. 7 mandatory, up to 5 optional with 3 allowed for Remittance addenda (maximum of 12 addenda records) - 7 mandatory, up to 2 optional remittance with or without additional optional foreign correspondent and up to 5 op