APRP Vocab Exam Questions With Correct
Answers
ACH |- |CORRECT |ANSWER✔✔-Automated |Clearing |House
ACH |Network |- |CORRECT |ANSWER✔✔-Backbone |for |the |electronic |movement |of |money |and |
data, |a |processing |and |delivery |system |that |provides |for |the |distribution |and |settlement |
among |financial |institutions |of |electronic |credits |and |debits, |as |well |as, |non-monetary |entries |
with |payment |related |information
ACH |Operator |- |CORRECT |ANSWER✔✔-Central |clearing |facility |that |receives |entries |from |the |
ODFIs |and |distributes |the |entries |to |the |appropriate |Receiving |Depository |Financial |Institution
ACH |Policy |- |CORRECT |ANSWER✔✔-Every |financial |institution |should |have |this |policy |that |
outlines |the |financial |institution's |goals |and |objectives |for |its |ACH |program. |The |policy |should |
have |the |approval |of |the |board |of |directors. |Some |elements |to |be |considered |or |be |addressed
|include: |
• |A |general |statement |that |the |organization |will |process |ACH |in |accordance |with |U.S. |law |and |
the |NACHA |Operating |Rules
• |Compliance |with |NACHA |Operating |Rules
• |Outline |of |the |types |of |ACH |products |the |FI |will |offer
• |Any |types |of |prohibited/restricted |originators
• |Internal |controls |practices |to |address |the |risk |inherent |to |offering |certain |ACH |products
• |Third |Party |Senders |relationships |should |be |addressed
• |ACH |Receipt
• |ACH |Origination
• |OFAC |Requirements"
,Addressing |- |CORRECT |ANSWER✔✔-Automated |means |to |route/direct |a |transaction |using |a |
set |of |data |often |employing |a |directory |service.
Alternate |channel |confirmations |- |CORRECT |ANSWER✔✔-Process |of |encouraging |customer |
participation |in |fraud |detection |and |increase |customer |confidence |by |sending |confirmations |of
|certain |high-risk |activities |through |additional |communication |channels |such |as |the |telephone, |
e-mail, |or |traditional |mail
AML |- |CORRECT |ANSWER✔✔-Anti- |Money |Laundering-
Ancillary |Risk |- |CORRECT |ANSWER✔✔-A |consequence |or |by-product |of |not |managing |credit, |
operational, |fraud, |systemic |or |compliance |Risks
Android |Pay |- |CORRECT |ANSWER✔✔-A |digital |wallet |platform |developed |by |Google |to |power |
in-app |and |tap-to-pay |purchases |on |mobile |devices, |enabling |users |to |make |payments |with |
Android |phones, |tablets |or |watches. |It |is |an |open |loop |system
Anomaly |Detection |- |CORRECT |ANSWER✔✔-A |technique |that |compares |current |behavior |with
|established |patterns |of |legitimate |behavior |and |looks |for |anomalies
API |- |CORRECT |ANSWER✔✔-A |set |of |specifications, |standards |or |conventions |that |enable |
programs |to |exchange |information
Apple |Pay |- |CORRECT |ANSWER✔✔-A |mobile |payment |and |digital |wallet |service |by |Apple |Inc. |
that |lets |users |make |payments |using |an |iPhone, |Apple |Watch, |iPad |or |Mac. |It |is |an |open |loop |
system.
Audit |Policy |- |CORRECT |ANSWER✔✔-A |financial |institution's |policy |that |should |address |the |
following |objectives, |whether |or |not |the |audit |functions |are |handled |in-house |or |outsourced: |
, Policy |Objective; |Scope |of |work; |Authority; |Auditing |standards; |Outsourcing/third |parties; |
External |auditor |restriction
Authentication |- |CORRECT |ANSWER✔✔-"The |explicit |instructions, |including: |timing, |amount, |
payee, |source |of |funds |and |other |conditions, |given |by |the |payer |to |the |payee |to |transfer |
funds |on |a |one-time |or |recurring |basis"
Address |Verification |System |(AVS) |- |CORRECT |ANSWER✔✔-Verify |a |cardholder's |billing |address
|and |other |pertinent |information, |used |for |mail, |telephone, |and |Internet |transactions
Basel |III |Regulatory |Capital |- |CORRECT |ANSWER✔✔-A |comprehensive |set |of |reform |measures, |
developed |by |the |Basel |Committee |on |Banking |Supervision |(BCBS), |to |strengthen |the |
regulation, |supervision, |and |risk |management |of |the |banking |sector, |including |both |liquidity |
and |capital |reforms.
Business |Continuity |Planning |(BCP) |- |CORRECT |ANSWER✔✔-Develop, |implement, |and |test |
appropriate |disaster |recovery, |in |order |to |maintain |acceptable |retail |payment-related |customer
|service |levels
Business |Impact |Analysis |(BIA) |- |CORRECT |ANSWER✔✔-A |flow |analysis |that |involves |an |
assessment |and |prioritization |of |those |business |functions |and |processes |that |must |be |
recovered. |should |also |consider |the |impact |of |legal |and |regulatory |requirements. |should |also |
estimate |the |maximum |allowable |downtime |for |critical |business |functions |and |processes |and |
the |acceptable |level |of |losses |(data, |operations, |financial, |reputation, |and |market |share) |
associated |with |this |estimated |downtime
Biometrics |- |CORRECT |ANSWER✔✔-Methods |include |voice |scanning |and |iris |and |retinal |
imagingfinger |scan |linked |to |his |or |her |personal |identification |information.
Capital |adequacy |- |CORRECT |ANSWER✔✔-Refers |to |the |amount |of |capital |a |financial |
institution |has |to |hold |as |required |by |its |regulator
Answers
ACH |- |CORRECT |ANSWER✔✔-Automated |Clearing |House
ACH |Network |- |CORRECT |ANSWER✔✔-Backbone |for |the |electronic |movement |of |money |and |
data, |a |processing |and |delivery |system |that |provides |for |the |distribution |and |settlement |
among |financial |institutions |of |electronic |credits |and |debits, |as |well |as, |non-monetary |entries |
with |payment |related |information
ACH |Operator |- |CORRECT |ANSWER✔✔-Central |clearing |facility |that |receives |entries |from |the |
ODFIs |and |distributes |the |entries |to |the |appropriate |Receiving |Depository |Financial |Institution
ACH |Policy |- |CORRECT |ANSWER✔✔-Every |financial |institution |should |have |this |policy |that |
outlines |the |financial |institution's |goals |and |objectives |for |its |ACH |program. |The |policy |should |
have |the |approval |of |the |board |of |directors. |Some |elements |to |be |considered |or |be |addressed
|include: |
• |A |general |statement |that |the |organization |will |process |ACH |in |accordance |with |U.S. |law |and |
the |NACHA |Operating |Rules
• |Compliance |with |NACHA |Operating |Rules
• |Outline |of |the |types |of |ACH |products |the |FI |will |offer
• |Any |types |of |prohibited/restricted |originators
• |Internal |controls |practices |to |address |the |risk |inherent |to |offering |certain |ACH |products
• |Third |Party |Senders |relationships |should |be |addressed
• |ACH |Receipt
• |ACH |Origination
• |OFAC |Requirements"
,Addressing |- |CORRECT |ANSWER✔✔-Automated |means |to |route/direct |a |transaction |using |a |
set |of |data |often |employing |a |directory |service.
Alternate |channel |confirmations |- |CORRECT |ANSWER✔✔-Process |of |encouraging |customer |
participation |in |fraud |detection |and |increase |customer |confidence |by |sending |confirmations |of
|certain |high-risk |activities |through |additional |communication |channels |such |as |the |telephone, |
e-mail, |or |traditional |mail
AML |- |CORRECT |ANSWER✔✔-Anti- |Money |Laundering-
Ancillary |Risk |- |CORRECT |ANSWER✔✔-A |consequence |or |by-product |of |not |managing |credit, |
operational, |fraud, |systemic |or |compliance |Risks
Android |Pay |- |CORRECT |ANSWER✔✔-A |digital |wallet |platform |developed |by |Google |to |power |
in-app |and |tap-to-pay |purchases |on |mobile |devices, |enabling |users |to |make |payments |with |
Android |phones, |tablets |or |watches. |It |is |an |open |loop |system
Anomaly |Detection |- |CORRECT |ANSWER✔✔-A |technique |that |compares |current |behavior |with
|established |patterns |of |legitimate |behavior |and |looks |for |anomalies
API |- |CORRECT |ANSWER✔✔-A |set |of |specifications, |standards |or |conventions |that |enable |
programs |to |exchange |information
Apple |Pay |- |CORRECT |ANSWER✔✔-A |mobile |payment |and |digital |wallet |service |by |Apple |Inc. |
that |lets |users |make |payments |using |an |iPhone, |Apple |Watch, |iPad |or |Mac. |It |is |an |open |loop |
system.
Audit |Policy |- |CORRECT |ANSWER✔✔-A |financial |institution's |policy |that |should |address |the |
following |objectives, |whether |or |not |the |audit |functions |are |handled |in-house |or |outsourced: |
, Policy |Objective; |Scope |of |work; |Authority; |Auditing |standards; |Outsourcing/third |parties; |
External |auditor |restriction
Authentication |- |CORRECT |ANSWER✔✔-"The |explicit |instructions, |including: |timing, |amount, |
payee, |source |of |funds |and |other |conditions, |given |by |the |payer |to |the |payee |to |transfer |
funds |on |a |one-time |or |recurring |basis"
Address |Verification |System |(AVS) |- |CORRECT |ANSWER✔✔-Verify |a |cardholder's |billing |address
|and |other |pertinent |information, |used |for |mail, |telephone, |and |Internet |transactions
Basel |III |Regulatory |Capital |- |CORRECT |ANSWER✔✔-A |comprehensive |set |of |reform |measures, |
developed |by |the |Basel |Committee |on |Banking |Supervision |(BCBS), |to |strengthen |the |
regulation, |supervision, |and |risk |management |of |the |banking |sector, |including |both |liquidity |
and |capital |reforms.
Business |Continuity |Planning |(BCP) |- |CORRECT |ANSWER✔✔-Develop, |implement, |and |test |
appropriate |disaster |recovery, |in |order |to |maintain |acceptable |retail |payment-related |customer
|service |levels
Business |Impact |Analysis |(BIA) |- |CORRECT |ANSWER✔✔-A |flow |analysis |that |involves |an |
assessment |and |prioritization |of |those |business |functions |and |processes |that |must |be |
recovered. |should |also |consider |the |impact |of |legal |and |regulatory |requirements. |should |also |
estimate |the |maximum |allowable |downtime |for |critical |business |functions |and |processes |and |
the |acceptable |level |of |losses |(data, |operations, |financial, |reputation, |and |market |share) |
associated |with |this |estimated |downtime
Biometrics |- |CORRECT |ANSWER✔✔-Methods |include |voice |scanning |and |iris |and |retinal |
imagingfinger |scan |linked |to |his |or |her |personal |identification |information.
Capital |adequacy |- |CORRECT |ANSWER✔✔-Refers |to |the |amount |of |capital |a |financial |
institution |has |to |hold |as |required |by |its |regulator
