AAP Exam EXAM QUESTIONS WITH
COMPLETE SOLUTION) (MULTIPLE CHOICES)
(A+ GRADED 100% VERIFIED) LATEST
VERSION 2025
Which of the following specify the requirements for reserves that a depository institution must maintain at a Federal
Reserve Bank?
a. Uniform Commercial Code Article 4A
b. Federal Reserve Bank Operating Circular 4
c. Regulation D
d. Regulation CC
Regulation D
Which of the following specifically addresses national banks and their need to evaluate large dollar payment system
network risks and requires reporting this to top management and maintaining agreements with all parties that they do
business with?
a. OCC Banking Circular 235
b. UCC 4
c. Regulation Z
d. UCC 4A
OCC Banking Circular 235
When an Originator is initiating an MTE, POS, SHR entry where a personal identification number (PIN) is required in
connection with the authorization, the Originator MUST comply with:
ANSI ASC X9.8 Standards
Which of the following payment systems is referred to as real-time and gross settlement?
a. Fedwire Funds Transfer
b. Check Processing System
c. Debit Card Network
d. ACH Network
Fedwire Funds Transfer
Choose the correct description of the Acquirer in the card network system:
a. The entity that has agreed to accept credit and debit cards for the purchase of goods and
services
b. The entity that issues a credit or debit card to the card holder
c. A financial institution that represents merchants in accepting POS transactions
d. The network that provides switching facilities for the card transactions
A financial institution that represents merchants in accepting POS transactions
, Which of the following lists the participants in check processing order?
a. Payor/Payee/Receiver/Paying Bank
b. Payee/Bank of First Deposit/Correspondent Bank/Paying Bank
c. Payor/Payee/Payee's FI/Payor's FI/Correspondent Bank
d. Payor/Payee/Merchant/ODFI/RDFI
Payee>Bank of First Deposit>Correspondent Bank> Paying Bank
An unauthorized entry is transmitted into the ACH Networkby County Council Credit Union, there are financial losses
involved and County Council Credit Union and the RDFI (State Bank) cannot come to an agreement as to who should
be paying what amount of money and to whom. What is the minimum amount of dispute BEFORE a complaint can be
filed to initiate an arbitration proceeding?
a. $200
b. $250
c. $1,000
d. $2,500
$250
Blue Sky Bank does ACH origination for two local companies in town. The bank has agreements in place with the two
originators in which it provides the necessary disclosures for UCC Article 4A as required by the NACHA Operating
Rules. Which provision of the UCC Article 4A can be varied by agreement (with disclosure to Originator)?
a. Delay or Failure to Transmit Entries
b. Payment Upon Acceptance of Entries
c. Duty to Pay ODFI
d. Choice of Law
Choice of Law
First Bank received a credit return entry R02 (Account closed) for $35,000 two weeks after the original transaction
was transmitted to the Receiver. First Bank feels that the RDFI (Oceans Bank) owes them interest and penalties for
failing to return the credit entry timely. What is the minimum dollar amount of loss suffered to file a claim for
compensation?
$200
Anthony opened his checking account with Northern Bank in February. In the initial disclosures provided by Northern
Bank upon opening, the ATM fee was clearly stated as being $3.00 per transaction. Effective October 1, the fee for
using the ATM will increase to $3.50. According to Regulation E, how many days prior notice is required when there
is a change to the initial disclosures which result in greater consumer liability?
a. 21 days
b. 30 days
c. 15 days
d. 10 days
21 Days
COMPLETE SOLUTION) (MULTIPLE CHOICES)
(A+ GRADED 100% VERIFIED) LATEST
VERSION 2025
Which of the following specify the requirements for reserves that a depository institution must maintain at a Federal
Reserve Bank?
a. Uniform Commercial Code Article 4A
b. Federal Reserve Bank Operating Circular 4
c. Regulation D
d. Regulation CC
Regulation D
Which of the following specifically addresses national banks and their need to evaluate large dollar payment system
network risks and requires reporting this to top management and maintaining agreements with all parties that they do
business with?
a. OCC Banking Circular 235
b. UCC 4
c. Regulation Z
d. UCC 4A
OCC Banking Circular 235
When an Originator is initiating an MTE, POS, SHR entry where a personal identification number (PIN) is required in
connection with the authorization, the Originator MUST comply with:
ANSI ASC X9.8 Standards
Which of the following payment systems is referred to as real-time and gross settlement?
a. Fedwire Funds Transfer
b. Check Processing System
c. Debit Card Network
d. ACH Network
Fedwire Funds Transfer
Choose the correct description of the Acquirer in the card network system:
a. The entity that has agreed to accept credit and debit cards for the purchase of goods and
services
b. The entity that issues a credit or debit card to the card holder
c. A financial institution that represents merchants in accepting POS transactions
d. The network that provides switching facilities for the card transactions
A financial institution that represents merchants in accepting POS transactions
, Which of the following lists the participants in check processing order?
a. Payor/Payee/Receiver/Paying Bank
b. Payee/Bank of First Deposit/Correspondent Bank/Paying Bank
c. Payor/Payee/Payee's FI/Payor's FI/Correspondent Bank
d. Payor/Payee/Merchant/ODFI/RDFI
Payee>Bank of First Deposit>Correspondent Bank> Paying Bank
An unauthorized entry is transmitted into the ACH Networkby County Council Credit Union, there are financial losses
involved and County Council Credit Union and the RDFI (State Bank) cannot come to an agreement as to who should
be paying what amount of money and to whom. What is the minimum amount of dispute BEFORE a complaint can be
filed to initiate an arbitration proceeding?
a. $200
b. $250
c. $1,000
d. $2,500
$250
Blue Sky Bank does ACH origination for two local companies in town. The bank has agreements in place with the two
originators in which it provides the necessary disclosures for UCC Article 4A as required by the NACHA Operating
Rules. Which provision of the UCC Article 4A can be varied by agreement (with disclosure to Originator)?
a. Delay or Failure to Transmit Entries
b. Payment Upon Acceptance of Entries
c. Duty to Pay ODFI
d. Choice of Law
Choice of Law
First Bank received a credit return entry R02 (Account closed) for $35,000 two weeks after the original transaction
was transmitted to the Receiver. First Bank feels that the RDFI (Oceans Bank) owes them interest and penalties for
failing to return the credit entry timely. What is the minimum dollar amount of loss suffered to file a claim for
compensation?
$200
Anthony opened his checking account with Northern Bank in February. In the initial disclosures provided by Northern
Bank upon opening, the ATM fee was clearly stated as being $3.00 per transaction. Effective October 1, the fee for
using the ATM will increase to $3.50. According to Regulation E, how many days prior notice is required when there
is a change to the initial disclosures which result in greater consumer liability?
a. 21 days
b. 30 days
c. 15 days
d. 10 days
21 Days
