AAP Exam Review Sample Test 100 Questions with Verified
Answers
Which of the following specify the requirements for reserves that a depository
institution must maintain at a federal reserve bank? - CORRECT ANSWER Reg D
Which of the following specifically addresses national banks and their need to
evaluate a large dollar payment system network risks and requires reporting this
to top management and maintaining agreements with all parties that they do
business with? - CORRECT ANSWER OCC Banking Circular 235
Which of the following payment systems is referred to as a real-time and gross
settlement? - CORRECT ANSWER Fedwire Funds Transfer
Choose the correct description of the Acquirer in the card network system: -
CORRECT ANSWER A Financial institution that represents merchants in accepting
POS transactions
What is the minimum amount of dispute BEFORE a complaint can be filed to
initiate an arbitration proceeding for the ACH Network? - CORRECT ANSWER $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 UCC Article 4A can be varied by agreement (with
disclosure to Originator)? - CORRECT ANSWER Choice of Law
Anthony opened his checking account with Northern Bank in February. In the
initial disclosures provided by Northern Bank upon account opening, the ATM fee
was clearly stated as being $3.00 per transaction. Effective October 1, the fee for
using an ATM will increase to $3.50. According to Reg E, how many days prior
notice is required when there is a change to the initial disclosures which results in
greater consumer liability? - CORRECT ANSWER 21 Days
, Which regulatory body requires the RDFI to perform a review of all parties to an
IAT entry including remittance and foreign correspondent addenda records? -
CORRECT ANSWER Office of Foreign Assets Control
Which of the following lists the participants in check processing order? - CORRECT
ANSWER Payee/Bank of First Deposit/correspondent Bank/Paying Bank
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 benefit
payment recipient? - CORRECT ANSWER By returning a post death benefit R14 or
R15
Regulation E does NOT apply to which of the following ACH products (identified
by SEC Code)? - CORRECT ANSWER RCK, CCD, CTX
Which of the following is true relating to addenda records for an IAT Entry? -
CORRECT ANSWER 7 mandatory, 2 optional remittance, 5 optional foreign
correspondent (only a combined maximum of 12 addenda records)
State Bank and Trust returns an entry as unauthorized after having the customer
complete and sign the written statement of unauthorized debit (WSUD). How
long is State Bank and Trust required to retain a copy of the WSUD? - CORRECT
ANSWER One Year
First Bank (ODFI) is creating XCK entries due to a lost cash letter. According to the
NACHA operating rules, First Bank needs to keep a copy of the item(s) to which
each XCK entry pertains for: - CORRECT ANSWER 6 Years
U.S. Steel Company is stating it has an unauthorized debit entry posting to its
corporate account on Sept 22. On Sept 29,it is requesting the RDFI (Star Bank) to
return the entry as unauthorized. What is the timeframe to return an
unauthorized ACH corporate entry? - CORRECT ANSWER Available to the ODFI no
later than opening of business on the second banking day following settlement
date of original entry
According to the NACHA operating rules, what is the minimum dollar amount of
loss suffered to file a claim for compensation? - CORRECT ANSWER $200
Answers
Which of the following specify the requirements for reserves that a depository
institution must maintain at a federal reserve bank? - CORRECT ANSWER Reg D
Which of the following specifically addresses national banks and their need to
evaluate a large dollar payment system network risks and requires reporting this
to top management and maintaining agreements with all parties that they do
business with? - CORRECT ANSWER OCC Banking Circular 235
Which of the following payment systems is referred to as a real-time and gross
settlement? - CORRECT ANSWER Fedwire Funds Transfer
Choose the correct description of the Acquirer in the card network system: -
CORRECT ANSWER A Financial institution that represents merchants in accepting
POS transactions
What is the minimum amount of dispute BEFORE a complaint can be filed to
initiate an arbitration proceeding for the ACH Network? - CORRECT ANSWER $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 UCC Article 4A can be varied by agreement (with
disclosure to Originator)? - CORRECT ANSWER Choice of Law
Anthony opened his checking account with Northern Bank in February. In the
initial disclosures provided by Northern Bank upon account opening, the ATM fee
was clearly stated as being $3.00 per transaction. Effective October 1, the fee for
using an ATM will increase to $3.50. According to Reg E, how many days prior
notice is required when there is a change to the initial disclosures which results in
greater consumer liability? - CORRECT ANSWER 21 Days
, Which regulatory body requires the RDFI to perform a review of all parties to an
IAT entry including remittance and foreign correspondent addenda records? -
CORRECT ANSWER Office of Foreign Assets Control
Which of the following lists the participants in check processing order? - CORRECT
ANSWER Payee/Bank of First Deposit/correspondent Bank/Paying Bank
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 benefit
payment recipient? - CORRECT ANSWER By returning a post death benefit R14 or
R15
Regulation E does NOT apply to which of the following ACH products (identified
by SEC Code)? - CORRECT ANSWER RCK, CCD, CTX
Which of the following is true relating to addenda records for an IAT Entry? -
CORRECT ANSWER 7 mandatory, 2 optional remittance, 5 optional foreign
correspondent (only a combined maximum of 12 addenda records)
State Bank and Trust returns an entry as unauthorized after having the customer
complete and sign the written statement of unauthorized debit (WSUD). How
long is State Bank and Trust required to retain a copy of the WSUD? - CORRECT
ANSWER One Year
First Bank (ODFI) is creating XCK entries due to a lost cash letter. According to the
NACHA operating rules, First Bank needs to keep a copy of the item(s) to which
each XCK entry pertains for: - CORRECT ANSWER 6 Years
U.S. Steel Company is stating it has an unauthorized debit entry posting to its
corporate account on Sept 22. On Sept 29,it is requesting the RDFI (Star Bank) to
return the entry as unauthorized. What is the timeframe to return an
unauthorized ACH corporate entry? - CORRECT ANSWER Available to the ODFI no
later than opening of business on the second banking day following settlement
date of original entry
According to the NACHA operating rules, what is the minimum dollar amount of
loss suffered to file a claim for compensation? - CORRECT ANSWER $200
