AAP Class Maker practice test Questions
With Correct Answers
An internet website is available for purchasing exercise equipment. On this site,
| | | | | | | | | | | |
visitors can select and purchase equipment by providing their checking account
| | | | | | | | | | |
information. The ODFI for the company that owns this website has exposure
| | | | | | | | | | | |
limits in place for this company, in addition to a separate payroll limit, as the ODFI
| | | | | | | | | | | | | | |
|also does the company's payroll. By establishing separate exposure limits for the
| | | | | | | | | | | |
WEB transactions, the ODFI is helping reduce what type of Risk?
| | | | | | | | | |
A Direct Access Risk
| | |
B Systemic Risk
| |
C Credit Risk
| |
D Reputation Risk
| |
Credit Risk |
When a party to a transaction fails to comply, either knowingly or inadvertently,
| | | | | | | | | | | | |
with Network rules and policies, regulations, and applicable U.S. and state law,
| | | | | | | | | | | |
this is an example of which type of risk?
| | | | | | | |
A Operational Risk
| |
B Compliance Risk
| |
C Fraud Risk
| |
D Systemic Risk
| |
Compliance Risk |
MegaCorp is disputing a debit that posted to its account. The debit item bears the
| | | | | | | | | | | | | |
CCD Standard Entry Class Code. What is the time frame for the RDFI to Transmit
| | | | | | | | | | | | | | | |
the item as a timely Return?
| | | | |
,A The Return Entry must be made available to the ODFI by the opening of
| | | | | | | | | | | | | | |
business on the second-Banking Day following the Settlement Date of the original
| | | | | | | | | | |
Entry
|
B The Return Entry must be received by the ODFI by the opening of business on
| | | | | | | | | | | | | | | |
the second-Banking Day following the Settlement Date of the original Entry
| | | | | | | | | |
C The Return Entry must be received by the ACH Operator by the opening of
| | | | | | | | | | | | | | |
business on the second-Banking Day following the Settlement of the original
| | | | | | | | | | |
Entry
D The Return Entry must be made available to the ACH Operator by the opening
| | | | | | | | | | | | | | |
of business on the second-Banking Day following the Settlement Date of the
| | | | | | | | | | | |
original Entry |
The Return Entry must be made available to the ODFI by the opening of business
| | | | | | | | | | | | | | |
on the second-Banking Day following the Settlement Date of the original Entry
| | | | | | | | | | |
The Company Entry Description for all Reinitiated Entries must
| | | | | | | |
A contain the same value as the first ACH Entry.
| | | | | | | | |
B contain the value RETRY PYMT.
| | | | |
C contain the value REINITIATED.
| | | |
D contain the value RETRY PMT.
| | | | |
contain the value RETRY PYMT | | | |
To dishonor a Return Entry, the ODFI must Transmit the dishonored Return Entry
| | | | | | | | | | | | |
to its |
ACH Operator |
A Within 5 calendar days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
B Within 2 Banking Days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
,C Within 2 calendar days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
D Within 5 Banking Days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
D Within 5 Banking Days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
How soon after settlement of a Prenotification Entry may the Originator initiate
| | | | | | | | | | | |
Entries to |
the Receiver's account if no return or Notification of Change (NOC) related to the
| | | | | | | | | | | | |
Prenotification is received by the opening of business on the second Banking Day
| | | | | | | | | | | |
following the Settlement Date of the Prenotification Entry?
| | | | | | |
A As soon as the second Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry |
provided the ODFI did not receive a timely Return Entry.
| | | | | | | | |
B As soon as the sixth Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry. |
C The Originator is not permitted to transmit Entries to the Receiver's account
| | | | | | | | | | | | |
until it has remedied the
| | | |
reason for the Return Entry or made the correction requested in an NOC Entry.
| | | | | | | | | | | | |
D As soon as the third Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry. |
D As soon as the third Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry. |
What is the correct sequence of Records in a File?
| | | | | | | | |
Company / Batch Header Record | | | |
File Header Record
| |
Entry Detail Record
| |
, Company / Batch Control Record
| | | |
File Control Record
| |
Entry Detail Record
| |
File Header Record
| |
Company / Batch Control Record
| | | |
Company / Batch Header Record
| | | |
File Control Record
| |
File Header Record
| |
File Control Record
| |
Company / Batch Header Record
| | | |
Company / Batch Control Record
| | | |
Entry Detail Record
| |
File Header Record
| |
Company / Batch Header Record
| | | |
Entry Detail Record
| |
Company / Batch Control Record
| | | |
File Control Record
| |
File Header Record
| |
Company / Batch Header Record
| | | |
Entry Detail Record
| |
Company / Batch Control Record
| | | |
File Control Record
| |
Which of the following should a risk assessment include?
| | | | | | | |
A Annual testing of procedures
| | | |
B Analysis of threats based on the impact to the institution and its customers
| | | | | | | | | | | | |
C Analysis of the nature of the threat
| | | | | | |
With Correct Answers
An internet website is available for purchasing exercise equipment. On this site,
| | | | | | | | | | | |
visitors can select and purchase equipment by providing their checking account
| | | | | | | | | | |
information. The ODFI for the company that owns this website has exposure
| | | | | | | | | | | |
limits in place for this company, in addition to a separate payroll limit, as the ODFI
| | | | | | | | | | | | | | |
|also does the company's payroll. By establishing separate exposure limits for the
| | | | | | | | | | | |
WEB transactions, the ODFI is helping reduce what type of Risk?
| | | | | | | | | |
A Direct Access Risk
| | |
B Systemic Risk
| |
C Credit Risk
| |
D Reputation Risk
| |
Credit Risk |
When a party to a transaction fails to comply, either knowingly or inadvertently,
| | | | | | | | | | | | |
with Network rules and policies, regulations, and applicable U.S. and state law,
| | | | | | | | | | | |
this is an example of which type of risk?
| | | | | | | |
A Operational Risk
| |
B Compliance Risk
| |
C Fraud Risk
| |
D Systemic Risk
| |
Compliance Risk |
MegaCorp is disputing a debit that posted to its account. The debit item bears the
| | | | | | | | | | | | | |
CCD Standard Entry Class Code. What is the time frame for the RDFI to Transmit
| | | | | | | | | | | | | | | |
the item as a timely Return?
| | | | |
,A The Return Entry must be made available to the ODFI by the opening of
| | | | | | | | | | | | | | |
business on the second-Banking Day following the Settlement Date of the original
| | | | | | | | | | |
Entry
|
B The Return Entry must be received by the ODFI by the opening of business on
| | | | | | | | | | | | | | | |
the second-Banking Day following the Settlement Date of the original Entry
| | | | | | | | | |
C The Return Entry must be received by the ACH Operator by the opening of
| | | | | | | | | | | | | | |
business on the second-Banking Day following the Settlement of the original
| | | | | | | | | | |
Entry
D The Return Entry must be made available to the ACH Operator by the opening
| | | | | | | | | | | | | | |
of business on the second-Banking Day following the Settlement Date of the
| | | | | | | | | | | |
original Entry |
The Return Entry must be made available to the ODFI by the opening of business
| | | | | | | | | | | | | | |
on the second-Banking Day following the Settlement Date of the original Entry
| | | | | | | | | | |
The Company Entry Description for all Reinitiated Entries must
| | | | | | | |
A contain the same value as the first ACH Entry.
| | | | | | | | |
B contain the value RETRY PYMT.
| | | | |
C contain the value REINITIATED.
| | | |
D contain the value RETRY PMT.
| | | | |
contain the value RETRY PYMT | | | |
To dishonor a Return Entry, the ODFI must Transmit the dishonored Return Entry
| | | | | | | | | | | | |
to its |
ACH Operator |
A Within 5 calendar days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
B Within 2 Banking Days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
,C Within 2 calendar days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
D Within 5 Banking Days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
D Within 5 Banking Days after the Settlement Date of the Return Entry
| | | | | | | | | | | |
How soon after settlement of a Prenotification Entry may the Originator initiate
| | | | | | | | | | | |
Entries to |
the Receiver's account if no return or Notification of Change (NOC) related to the
| | | | | | | | | | | | |
Prenotification is received by the opening of business on the second Banking Day
| | | | | | | | | | | |
following the Settlement Date of the Prenotification Entry?
| | | | | | |
A As soon as the second Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry |
provided the ODFI did not receive a timely Return Entry.
| | | | | | | | |
B As soon as the sixth Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry. |
C The Originator is not permitted to transmit Entries to the Receiver's account
| | | | | | | | | | | | |
until it has remedied the
| | | |
reason for the Return Entry or made the correction requested in an NOC Entry.
| | | | | | | | | | | | |
D As soon as the third Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry. |
D As soon as the third Banking Day following the Settlement Date of the
| | | | | | | | | | | | | |
Prenotification Entry. |
What is the correct sequence of Records in a File?
| | | | | | | | |
Company / Batch Header Record | | | |
File Header Record
| |
Entry Detail Record
| |
, Company / Batch Control Record
| | | |
File Control Record
| |
Entry Detail Record
| |
File Header Record
| |
Company / Batch Control Record
| | | |
Company / Batch Header Record
| | | |
File Control Record
| |
File Header Record
| |
File Control Record
| |
Company / Batch Header Record
| | | |
Company / Batch Control Record
| | | |
Entry Detail Record
| |
File Header Record
| |
Company / Batch Header Record
| | | |
Entry Detail Record
| |
Company / Batch Control Record
| | | |
File Control Record
| |
File Header Record
| |
Company / Batch Header Record
| | | |
Entry Detail Record
| |
Company / Batch Control Record
| | | |
File Control Record
| |
Which of the following should a risk assessment include?
| | | | | | | |
A Annual testing of procedures
| | | |
B Analysis of threats based on the impact to the institution and its customers
| | | | | | | | | | | | |
C Analysis of the nature of the threat
| | | | | | |
