WESPAY AAP EXAM 2025 WITH 100%
ACCURATE SOLUTIONS
1. The ____________________ is a processing and delivery system that provides for the
distribution and settlement of electronic credits and debits among financial institutions. -
correct answers ✔✔ACH Network
2. The ACH movement began in the early ____________________ when a group of California
bankers formed the Special Committee on Paperless Entries (SCOPE). - correct answers
✔✔1970s
3. In 1974, __________________was formed to coordinate the ACH movement nationwide. -
correct answers ✔✔(National Automated Clearing House Association)
4. The main benefits associated with the use of the ACH network are
__________________________ and improved productivity over paper check transactions. -
correct answers ✔✔cost reduction
5. ACH Operators may be private companies or the Federal Reserve Bank. The current private
sector operator is the ______________________________________. - correct answers
✔✔Electronic Payments Network.
6. ______________________________________provide management, education, assistance,
and services to link all types of financial institutions (commercial banks, savings banks and credit
unions) across the United States. - correct answers ✔✔Regional Payments Associations
,7. The ACH system is a __________________________________, store-and-forward system.
Transactions received by the financial institution during the day are stored and processed later
in a batch mode. - correct answers ✔✔batch processing
8. The ____________________________ is the entity that agrees to initiate ACH Entries into
the payment system according to an arrangement with a Receiver. - correct answers
✔✔Originator
9. An ___________________________________ is the central clearing facility operated by a
private organization or a Federal Reserve Bank (FRB) on behalf of DFIs to or from which
participating DFIs transmit or receive ACH Entries. - correct answers ✔✔Automated Clearing
House Operator
10. The _________________________________________ is the institution that receives
payment instructions from the ____________________________________and forwards Entries
to the ACH Operator. - correct answers ✔✔Originating Depository Financial Institution
Originator
11. A ______________________ is a natural person or an organization that has authorized an
Originator to initiate an ACH Entry to its account with the RDFI. A
____________________________ can either be a company or a consumer, depending on the
type of transaction. - correct answers ✔✔Receiver
12. Unlike a check, which is always a debit instrument, an ACH Entry may be either a
________________________ or a ____________________________ Entry. - correct answers
✔✔credit
debit
13. Dividends, payrolls and government vendor payments are examples of ACH __________. -
correct answers ✔✔credits
,14. Before any transaction is initiated, the Originator and ODFI execute an
_____________________________ to use the ACH network to originate payments. - correct
answers ✔✔agreement
The ______________________________ should bind the originating company to the
_________________________, define the parameters of the relationship between the two
parties, identify processing requirements for the specific application(s), and establish liability
and accountability for procedures related to certain application(s). - correct answers
✔✔agreement
NACHA Operating Rules
16. The __________________ is one of the world's oldest forms of payment, and today exists as
one of the most common methods of payment, both in the United States and internationally. -
correct answers ✔✔Check
17. The traditional Check is a ____________________ payment instrument that is widely
accepted and used by businesses, governments, and consumers as payment for virtually a form
of commerce. - correct answers ✔✔debit
18. A distinguishing characteristic of Fedwire is that it is a real-time, gross-settlement system
which operates in a real-time environment if it processes each transaction as it is initiated,
rather than _______________________ by __________________________. - correct answers
✔✔processing
batch
19. The Fedwire Securities are held and transferred in _________________________ form
known as Book-Entry Securities; unlike the Fedwire Funds Service, the Fedwire Securities
Service is a ___________________________________ system with regard to payments. -
correct answers ✔✔electronic
debit/pull
, 20. The Fedwire Funds Service is a _______________________system in which only the
Originator's financial institution can remove funds from its Federal Reserve account. - correct
answers ✔✔credit/push
21. _________________________________________ are not true payment instruments
because they do not result in a direct transfer of funds from the Payor to the Payee. - correct
answers ✔✔Credit cards
22. _____________________________________________ are used by consumers at ATMs to
withdraw cash from their accounts and may be used as a means of electronic payment, either
on-line or off-line, for goods or services purchased at a retail establishment. - correct answers
✔✔Debit cards
23. Unlike a ____________________________ card, where the cost of goods is charged to an
account that is paid later and to which interest may be applied, the cost of goods charged
against a _____________________ card is taken directly from a demand deposit account. -
correct answers ✔✔credit, debit
24. The two banking conventions that advanced paper check processing were ______ and
______. - correct answers ✔✔Routing Numbers
MICR
25. The check system participant known as the Payee's Depository Financial Institution is also
known as the _________. - correct answers ✔✔Bank of First Deposit (BOFD)
26. A check participant who creates an image of the original check is known as the
_________________________. - correct answers ✔✔Truncating Bank
ACCURATE SOLUTIONS
1. The ____________________ is a processing and delivery system that provides for the
distribution and settlement of electronic credits and debits among financial institutions. -
correct answers ✔✔ACH Network
2. The ACH movement began in the early ____________________ when a group of California
bankers formed the Special Committee on Paperless Entries (SCOPE). - correct answers
✔✔1970s
3. In 1974, __________________was formed to coordinate the ACH movement nationwide. -
correct answers ✔✔(National Automated Clearing House Association)
4. The main benefits associated with the use of the ACH network are
__________________________ and improved productivity over paper check transactions. -
correct answers ✔✔cost reduction
5. ACH Operators may be private companies or the Federal Reserve Bank. The current private
sector operator is the ______________________________________. - correct answers
✔✔Electronic Payments Network.
6. ______________________________________provide management, education, assistance,
and services to link all types of financial institutions (commercial banks, savings banks and credit
unions) across the United States. - correct answers ✔✔Regional Payments Associations
,7. The ACH system is a __________________________________, store-and-forward system.
Transactions received by the financial institution during the day are stored and processed later
in a batch mode. - correct answers ✔✔batch processing
8. The ____________________________ is the entity that agrees to initiate ACH Entries into
the payment system according to an arrangement with a Receiver. - correct answers
✔✔Originator
9. An ___________________________________ is the central clearing facility operated by a
private organization or a Federal Reserve Bank (FRB) on behalf of DFIs to or from which
participating DFIs transmit or receive ACH Entries. - correct answers ✔✔Automated Clearing
House Operator
10. The _________________________________________ is the institution that receives
payment instructions from the ____________________________________and forwards Entries
to the ACH Operator. - correct answers ✔✔Originating Depository Financial Institution
Originator
11. A ______________________ is a natural person or an organization that has authorized an
Originator to initiate an ACH Entry to its account with the RDFI. A
____________________________ can either be a company or a consumer, depending on the
type of transaction. - correct answers ✔✔Receiver
12. Unlike a check, which is always a debit instrument, an ACH Entry may be either a
________________________ or a ____________________________ Entry. - correct answers
✔✔credit
debit
13. Dividends, payrolls and government vendor payments are examples of ACH __________. -
correct answers ✔✔credits
,14. Before any transaction is initiated, the Originator and ODFI execute an
_____________________________ to use the ACH network to originate payments. - correct
answers ✔✔agreement
The ______________________________ should bind the originating company to the
_________________________, define the parameters of the relationship between the two
parties, identify processing requirements for the specific application(s), and establish liability
and accountability for procedures related to certain application(s). - correct answers
✔✔agreement
NACHA Operating Rules
16. The __________________ is one of the world's oldest forms of payment, and today exists as
one of the most common methods of payment, both in the United States and internationally. -
correct answers ✔✔Check
17. The traditional Check is a ____________________ payment instrument that is widely
accepted and used by businesses, governments, and consumers as payment for virtually a form
of commerce. - correct answers ✔✔debit
18. A distinguishing characteristic of Fedwire is that it is a real-time, gross-settlement system
which operates in a real-time environment if it processes each transaction as it is initiated,
rather than _______________________ by __________________________. - correct answers
✔✔processing
batch
19. The Fedwire Securities are held and transferred in _________________________ form
known as Book-Entry Securities; unlike the Fedwire Funds Service, the Fedwire Securities
Service is a ___________________________________ system with regard to payments. -
correct answers ✔✔electronic
debit/pull
, 20. The Fedwire Funds Service is a _______________________system in which only the
Originator's financial institution can remove funds from its Federal Reserve account. - correct
answers ✔✔credit/push
21. _________________________________________ are not true payment instruments
because they do not result in a direct transfer of funds from the Payor to the Payee. - correct
answers ✔✔Credit cards
22. _____________________________________________ are used by consumers at ATMs to
withdraw cash from their accounts and may be used as a means of electronic payment, either
on-line or off-line, for goods or services purchased at a retail establishment. - correct answers
✔✔Debit cards
23. Unlike a ____________________________ card, where the cost of goods is charged to an
account that is paid later and to which interest may be applied, the cost of goods charged
against a _____________________ card is taken directly from a demand deposit account. -
correct answers ✔✔credit, debit
24. The two banking conventions that advanced paper check processing were ______ and
______. - correct answers ✔✔Routing Numbers
MICR
25. The check system participant known as the Payee's Depository Financial Institution is also
known as the _________. - correct answers ✔✔Bank of First Deposit (BOFD)
26. A check participant who creates an image of the original check is known as the
_________________________. - correct answers ✔✔Truncating Bank
