APRP-EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
GRADED A+
QUESTIONS AND ANSWERS
Prepaid/Stored Value Card. ANSWER -A card-based payment system that assigns a value
to the card; some cards can be "reloaded"through various methods and the others are
designed to be discarded.
Credit card. ANSWER -A card indicating the holder has been granted a line of credit to
make purchases or withdraw cash up to a prearranged ceiling.
Debit card. ANSWER -A payment card issued to a person for purchasing goods and
services through an electronic transfer of funds from a demand deposit account (DDA)
rather than using cash, checks drafts at the point of sale.
Credit entry. ANSWER -An entry to the record of an account that represents the transfer
or placement of funds into the account.
Debit entry. ANSWER -An entry to the record of an account that represents the transfer or
removal of funds from the account.
Electronically Created Item (ECI). ANSWER -A check that never appears in paper form.
Remotely Created Check(RDC). ANSWER -Check created by a payee based on the account
holder's authorization that does not bear a signature.
Remote Deposit Capture (RDC). ANSWER -Delivery system that enables paper checks to
be processed remotely.
Pay Before. ANSWER -Type of retail processing where a card payment is made for goods
or services with prepaid or stored-value cards,
, Pay Now. ANSWER -Type of retail processing where a card payment is expected when the
goods or services are received; generally associated with debit payments(debit cards)
Pay Later. ANSWER -Type of retail processing where a card payment is expected after the
goods or services have been received; typically refers to credit payments(credit cards)
SWIFT. ANSWER -Global network messaging service supporting correspondent banking
and financial market utilities.
Financial Market Utilities(FMUs). ANSWER -Multilateral systems that provide the
infrastructure for transferring, clearing and settling payments, securities and other financial
transactions or between financial institutions and the system.
Application Program Interface (API). ANSWER -A list of specifications, standards or
conventions that enable computer programs to exchange information.
Payroll card account. ANSWER -A bank account established directly or indirectly by an
employer on behalf of an employee to which an employees wages are electronically
transferred to.
Beneficiary. ANSWER -Person or entity to be paid in a funds transfer.
Beneficiary's bank. ANSWER -Financial institution identified in a funds transfer to be
credited pursuant to the payment order.
Federal Reserve Bank. ANSWER -Entity that process and settles Fedwire Funds
Originating/Sender Bank. ANSWER -Financial Institution that initiates a funds transfer on
behalf of the Originator.
Originator. ANSWER -Sender of the payment order in a funds or securities transfer.
Reconverting Bank. ANSWER -Financial institution that produces the substitute check or
Image replacement documents(IRD)
SOLUTIONS
GRADED A+
QUESTIONS AND ANSWERS
Prepaid/Stored Value Card. ANSWER -A card-based payment system that assigns a value
to the card; some cards can be "reloaded"through various methods and the others are
designed to be discarded.
Credit card. ANSWER -A card indicating the holder has been granted a line of credit to
make purchases or withdraw cash up to a prearranged ceiling.
Debit card. ANSWER -A payment card issued to a person for purchasing goods and
services through an electronic transfer of funds from a demand deposit account (DDA)
rather than using cash, checks drafts at the point of sale.
Credit entry. ANSWER -An entry to the record of an account that represents the transfer
or placement of funds into the account.
Debit entry. ANSWER -An entry to the record of an account that represents the transfer or
removal of funds from the account.
Electronically Created Item (ECI). ANSWER -A check that never appears in paper form.
Remotely Created Check(RDC). ANSWER -Check created by a payee based on the account
holder's authorization that does not bear a signature.
Remote Deposit Capture (RDC). ANSWER -Delivery system that enables paper checks to
be processed remotely.
Pay Before. ANSWER -Type of retail processing where a card payment is made for goods
or services with prepaid or stored-value cards,
, Pay Now. ANSWER -Type of retail processing where a card payment is expected when the
goods or services are received; generally associated with debit payments(debit cards)
Pay Later. ANSWER -Type of retail processing where a card payment is expected after the
goods or services have been received; typically refers to credit payments(credit cards)
SWIFT. ANSWER -Global network messaging service supporting correspondent banking
and financial market utilities.
Financial Market Utilities(FMUs). ANSWER -Multilateral systems that provide the
infrastructure for transferring, clearing and settling payments, securities and other financial
transactions or between financial institutions and the system.
Application Program Interface (API). ANSWER -A list of specifications, standards or
conventions that enable computer programs to exchange information.
Payroll card account. ANSWER -A bank account established directly or indirectly by an
employer on behalf of an employee to which an employees wages are electronically
transferred to.
Beneficiary. ANSWER -Person or entity to be paid in a funds transfer.
Beneficiary's bank. ANSWER -Financial institution identified in a funds transfer to be
credited pursuant to the payment order.
Federal Reserve Bank. ANSWER -Entity that process and settles Fedwire Funds
Originating/Sender Bank. ANSWER -Financial Institution that initiates a funds transfer on
behalf of the Originator.
Originator. ANSWER -Sender of the payment order in a funds or securities transfer.
Reconverting Bank. ANSWER -Financial institution that produces the substitute check or
Image replacement documents(IRD)
