AAPEXAM QUESTIONS WITH COMPLETE SOLUTION) (MULTIPLE
AAP Exam
CHOICES) (A+ GRADED 100% VERIFIED) LATEST VERSION 2025
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1. Which of the following specify the requirements for Regulation D
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
2. Which of the following specifically addresses national OCC Banking Circular 235
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
3. When an Originator is initiating an MTE, POS, SHR ANSI ASC X9.8 Standards
entry where a personal identification number (PIN)
is required in connection with the authorization, the
Originator MUST comply with:
4. Which of the following payment systems is referred to Fedwire Funds Transfer
as real-time and gross settlement?
a. Fedwire Funds Transfer
b. Check Processing System
c. Debit Card Network
d. ACH Network
5. Choose the correct description of the Acquirer in the A financial institution that
card network system: represents merchants in
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a. The entity that has agreed to accept credit and debit accepting POS transac-
cards for the purchase of goods and tions
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
6. Which of the following lists the participants in check Payee>Bank of
processing order? First Deposit>Correspon-
a. Payor/Payee/Receiver/Paying Bank dent Bank> 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
7. An unauthorized entry is transmitted into the ACH $250
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
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8. Blue Sky Bank does ACH origination for two local com- Choice of Law
panies in town. The bank has agreements in place
with the two originators in which it provides the neces-
sary 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)?
a. Delay or Failure to Transmit Entries
b. Payment Upon Acceptance of Entries
c. Duty to Pay ODFI
d. Choice of Law
9. First Bank received a credit return entry R02 (Account $200
closed) for $35,000 two weeks after the original trans-
action 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?
10. Anthony opened his checking account with Northern 21 Days
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
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11. According to an original authorization between Geor- Regulation E
gia 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?
12. The pastor at a local church passes away and the R14 or R15 by returning a
president at Lake Area Credit Union attends the funer- post-death benefit
al. 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?
13. Regulation E does NOT apply to which of the following RCK, CCD, CTX
ACH products identified by SEC code)?
a. ARC, POP, BOC
b. RCK, CCD, CTX
c. BOC, PPD, WEB
d. PPD, WEB, TEL
14. Which of the following is true relating to an IAT (Inter- 7 mandatory, up to 2 op-
national ACH Transaction) entry? tional remittance with or
a. 7 mandatory and up to 7 optional (maximum of 14 without additional option-
addenda records) al foreign correspondent
b. 7 mandatory, 2 mandatory remittance and 5 option- and up to 5 optional for-
al foreign correspondent (maximum of eign correspondent (only
14 addenda records)
AAP Exam
CHOICES) (A+ GRADED 100% VERIFIED) LATEST VERSION 2025
Study online at https://quizlet.com/_h7w08t
1. Which of the following specify the requirements for Regulation D
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
2. Which of the following specifically addresses national OCC Banking Circular 235
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
3. When an Originator is initiating an MTE, POS, SHR ANSI ASC X9.8 Standards
entry where a personal identification number (PIN)
is required in connection with the authorization, the
Originator MUST comply with:
4. Which of the following payment systems is referred to Fedwire Funds Transfer
as real-time and gross settlement?
a. Fedwire Funds Transfer
b. Check Processing System
c. Debit Card Network
d. ACH Network
5. Choose the correct description of the Acquirer in the A financial institution that
card network system: represents merchants in
, AAP Exam
Study online at https://quizlet.com/_h7w08t
a. The entity that has agreed to accept credit and debit accepting POS transac-
cards for the purchase of goods and tions
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
6. Which of the following lists the participants in check Payee>Bank of
processing order? First Deposit>Correspon-
a. Payor/Payee/Receiver/Paying Bank dent Bank> 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
7. An unauthorized entry is transmitted into the ACH $250
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
, AAP Exam
Study online at https://quizlet.com/_h7w08t
8. Blue Sky Bank does ACH origination for two local com- Choice of Law
panies in town. The bank has agreements in place
with the two originators in which it provides the neces-
sary 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)?
a. Delay or Failure to Transmit Entries
b. Payment Upon Acceptance of Entries
c. Duty to Pay ODFI
d. Choice of Law
9. First Bank received a credit return entry R02 (Account $200
closed) for $35,000 two weeks after the original trans-
action 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?
10. Anthony opened his checking account with Northern 21 Days
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
, AAP Exam
Study online at https://quizlet.com/_h7w08t
11. According to an original authorization between Geor- Regulation E
gia 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?
12. The pastor at a local church passes away and the R14 or R15 by returning a
president at Lake Area Credit Union attends the funer- post-death benefit
al. 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?
13. Regulation E does NOT apply to which of the following RCK, CCD, CTX
ACH products identified by SEC code)?
a. ARC, POP, BOC
b. RCK, CCD, CTX
c. BOC, PPD, WEB
d. PPD, WEB, TEL
14. Which of the following is true relating to an IAT (Inter- 7 mandatory, up to 2 op-
national ACH Transaction) entry? tional remittance with or
a. 7 mandatory and up to 7 optional (maximum of 14 without additional option-
addenda records) al foreign correspondent
b. 7 mandatory, 2 mandatory remittance and 5 option- and up to 5 optional for-
al foreign correspondent (maximum of eign correspondent (only
14 addenda records)
