AAP Practice Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Reinitiated entries must be identified by 'RETRY PYMT' in the - CORRECT
ANSWER Company Entry Description field
If an ODFI receives a letter from NACHA regarding an Originator that has exceeded the
Unauthorized Return Rate Threshold, it must respond within - CORRECT
ANSWER 10 banking days
Which rule or regulations governs the processing of federal government ACH payments -
CORRECT ANSWER title 31 code of federal regulations part 210
A consumer contacts his RDFI on October 4 claiming a TEL entry that appeared on his
September 4 statement was never authorized by him. What action should the RDFI take first -
CORRECT ANSWER have him complete a Written statement of Unauthorized debit
When an ODFI utilizes a third-party service provider (ie sending point) in the origination
process, which party warrants the entries are authorized - CORRECT ANSWER ODFI
Direct access is defined as - CORRECT ANSWER An Originator or a third party that
transmits ACH files directly to an ACH Operator using a financial institution's routing
number and settlement account
Included in an ODFI's Written response to NACHA regarding an Originator who has has
exceeded a return rate threshold or level is a plan for reducing the return rate to below the
threshold and/or level within - CORRECT ANSWER 30 calendar days of NACHS's
request
Which settlement is true regarding return processing in a same-day environment - CORRECT
ANSWER rdfis may send same day returns regardless of whether the forward item was
a Same Day Entry
A Participating DFI must keep records of all ACH entries for - CORRECT ANSWER 6
years
Inbound IAT debit transactions used to fund a beneficiary residing outside of the U.S. must
identify the ultimate beneficiary in the - CORRECT ANSWER remittances addenda
record
, A reclamation entry is subordinate to claims or potential claims by which entity - CORRECT
ANSWER Veterans Administration
Smalltown Bank has contracted with megabank to process its ACH files. Because of this
relationship, Smalltown Bank is exposed to - CORRECT ANSWER Third-party risk
What is the difference between the Fedwire Funds Service and Fedwire Securities Service -
CORRECT ANSWER Fedwire Funds is a credit/push system;Fedwire Securities is a
debit/pull system.
Which of the following does not govern checks and check collection - CORRECT
ANSWER regulation E
A VAN is best described as a - CORRECT ANSWER communications network for
sending and receiving data
Which of the following checks is eligible to be converted to an ARC, POP or BOC entry -
CORRECT ANSWER consumers check in the amount of $25,000
Which of the following emerging payments is considered a closed loop network - CORRECT
ANSWER Dwolla
To be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to or
less than - CORRECT ANSWER 2,500
An Originator goes out of business before its ODFI is able to change back a debit entry that
was returned as NSF this scenario represents what type of risk to ODFI - CORRECT
ANSWER credit risk
Which card payment system participant is responsible for representing merchants in
accepting card transactions - CORRECT ANSWER Acquirer
Which ACH record contains the Company Entry Description field - CORRECT
ANSWER Company/Batch Header Record
Under 31 CFR Part 210 an RDFI establishes a contractual relationship with the Federal
Government when it - CORRECT ANSWER Accepts a benefit payment
Which party is considered the Sending Point - CORRECT ANSWER The ACH
participant that sends the ACH file to the ACH Operator
QUESTIONS AND CORRECT ANSWERS
Reinitiated entries must be identified by 'RETRY PYMT' in the - CORRECT
ANSWER Company Entry Description field
If an ODFI receives a letter from NACHA regarding an Originator that has exceeded the
Unauthorized Return Rate Threshold, it must respond within - CORRECT
ANSWER 10 banking days
Which rule or regulations governs the processing of federal government ACH payments -
CORRECT ANSWER title 31 code of federal regulations part 210
A consumer contacts his RDFI on October 4 claiming a TEL entry that appeared on his
September 4 statement was never authorized by him. What action should the RDFI take first -
CORRECT ANSWER have him complete a Written statement of Unauthorized debit
When an ODFI utilizes a third-party service provider (ie sending point) in the origination
process, which party warrants the entries are authorized - CORRECT ANSWER ODFI
Direct access is defined as - CORRECT ANSWER An Originator or a third party that
transmits ACH files directly to an ACH Operator using a financial institution's routing
number and settlement account
Included in an ODFI's Written response to NACHA regarding an Originator who has has
exceeded a return rate threshold or level is a plan for reducing the return rate to below the
threshold and/or level within - CORRECT ANSWER 30 calendar days of NACHS's
request
Which settlement is true regarding return processing in a same-day environment - CORRECT
ANSWER rdfis may send same day returns regardless of whether the forward item was
a Same Day Entry
A Participating DFI must keep records of all ACH entries for - CORRECT ANSWER 6
years
Inbound IAT debit transactions used to fund a beneficiary residing outside of the U.S. must
identify the ultimate beneficiary in the - CORRECT ANSWER remittances addenda
record
, A reclamation entry is subordinate to claims or potential claims by which entity - CORRECT
ANSWER Veterans Administration
Smalltown Bank has contracted with megabank to process its ACH files. Because of this
relationship, Smalltown Bank is exposed to - CORRECT ANSWER Third-party risk
What is the difference between the Fedwire Funds Service and Fedwire Securities Service -
CORRECT ANSWER Fedwire Funds is a credit/push system;Fedwire Securities is a
debit/pull system.
Which of the following does not govern checks and check collection - CORRECT
ANSWER regulation E
A VAN is best described as a - CORRECT ANSWER communications network for
sending and receiving data
Which of the following checks is eligible to be converted to an ARC, POP or BOC entry -
CORRECT ANSWER consumers check in the amount of $25,000
Which of the following emerging payments is considered a closed loop network - CORRECT
ANSWER Dwolla
To be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to or
less than - CORRECT ANSWER 2,500
An Originator goes out of business before its ODFI is able to change back a debit entry that
was returned as NSF this scenario represents what type of risk to ODFI - CORRECT
ANSWER credit risk
Which card payment system participant is responsible for representing merchants in
accepting card transactions - CORRECT ANSWER Acquirer
Which ACH record contains the Company Entry Description field - CORRECT
ANSWER Company/Batch Header Record
Under 31 CFR Part 210 an RDFI establishes a contractual relationship with the Federal
Government when it - CORRECT ANSWER Accepts a benefit payment
Which party is considered the Sending Point - CORRECT ANSWER The ACH
participant that sends the ACH file to the ACH Operator
