AAP prac ce exam ques ons and answers Updated
RATED A+ 2025/2026 NEW!!
Reini ated entries must be iden fied by 'RETRY PYMT' in the - Ans Company Entry Descrip on
field
if an ODFI receives a le%er from NACHA regarding an Originator that has exceeded the
Unauthorized Return Rate Threshold, it must respond within - Ans 10 banking days
which rule or regula ons governs the processing of federal government ACH payments - Ans
tle 31 code of federal regula ons 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 ac on should the RDFI take first -
Ans have him complete a Wri%en statement of Unauthorized debit
when an ODFI u lizes a third-party service provider (ie sending point) in the origina on
process, which party warrants the entries are authorized - Ans ODFI
Direct access is defined as - Ans An Originator or a third party that transmits ACH files directly
to an ACH Operator using a financial ins tu on's rou ng number and se%lement account
included in an ODFI's Wri%en 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 - Ans 30 calendar days of NACHS's request
which se%lement is true regarding return processing in a same-day environment - Ans RDFIs
may send same day returns regardless of whether the forward item was a Same Day Entry
,A Par cipa ng DFI must keep records of all ACH entries for - Ans 6 years
inbound IAT debit transac ons used to fund a beneficiary residing outside of the U.S. must
iden fy the ul mate beneficiary in the - Ans remi%ances addenda record
a reclama on entry is subordinate to claims or poten al claims by which en ty - Ans Veterans
Administra on
SmallTown Bank has contracted with MegaBank to process its ACH files. Because of this
rela onship, Smalltown Bank is exposed to - Ans Third-party risk
what is the difference between the Fedwire Funds Service and Fedwire Securi es Service - Ans
Fedwire Funds is a credit/push system;Fedwire Securi es is a debit/pull system.
which of the following does not govern checks and check collec on - Ans regula on E
a VAN is best described as a - Ans communica ons network for sending and receiving data
which of the following checks is eligible to be converted to an ARC, POP or BOC entry - Ans
consumers check in the amount of $25,000
which of the following emerging payments is considered a closed loop network - Ans Dwolla
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to or less
than - Ans 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 - Ans credit risk
which card payment system par cipant is responsible for represen ng merchants in accep ng
card transac ons - Ans Acquirer
which ACH record contains the Company Entry Descrip on field - Ans Company/Batch Header
Record
under 31 CFR Part 210 an RDFI establishes a contractual rela onship with the Federal
Government when it - Ans Accepts a benefit payment
which party is considered the Sending Point - Ans The ACH par cipant that sends the ACH file
to the ACH Operator
which of the following techniques would a financial ins tu on use to mi gate credit risk - Ans
SeFng exposure limits
RDFIs must iden fy the sender of a P2P payment on the consumer's periodic statement. the
sender's name is found in the - Ans Individual Iden fica on Number field
ABC Credit Union becomes aware of a member's death and flags the account. The following
ACH entries are received aHer her date of death. To limit its liability, which payment must be
returned - Ans Social Security benefit payment in the name of the deceased
An RDFI that posts ACH entries based solely on the account number is - Ans Not liable for any
entries sent be the ODFI in error
RATED A+ 2025/2026 NEW!!
Reini ated entries must be iden fied by 'RETRY PYMT' in the - Ans Company Entry Descrip on
field
if an ODFI receives a le%er from NACHA regarding an Originator that has exceeded the
Unauthorized Return Rate Threshold, it must respond within - Ans 10 banking days
which rule or regula ons governs the processing of federal government ACH payments - Ans
tle 31 code of federal regula ons 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 ac on should the RDFI take first -
Ans have him complete a Wri%en statement of Unauthorized debit
when an ODFI u lizes a third-party service provider (ie sending point) in the origina on
process, which party warrants the entries are authorized - Ans ODFI
Direct access is defined as - Ans An Originator or a third party that transmits ACH files directly
to an ACH Operator using a financial ins tu on's rou ng number and se%lement account
included in an ODFI's Wri%en 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 - Ans 30 calendar days of NACHS's request
which se%lement is true regarding return processing in a same-day environment - Ans RDFIs
may send same day returns regardless of whether the forward item was a Same Day Entry
,A Par cipa ng DFI must keep records of all ACH entries for - Ans 6 years
inbound IAT debit transac ons used to fund a beneficiary residing outside of the U.S. must
iden fy the ul mate beneficiary in the - Ans remi%ances addenda record
a reclama on entry is subordinate to claims or poten al claims by which en ty - Ans Veterans
Administra on
SmallTown Bank has contracted with MegaBank to process its ACH files. Because of this
rela onship, Smalltown Bank is exposed to - Ans Third-party risk
what is the difference between the Fedwire Funds Service and Fedwire Securi es Service - Ans
Fedwire Funds is a credit/push system;Fedwire Securi es is a debit/pull system.
which of the following does not govern checks and check collec on - Ans regula on E
a VAN is best described as a - Ans communica ons network for sending and receiving data
which of the following checks is eligible to be converted to an ARC, POP or BOC entry - Ans
consumers check in the amount of $25,000
which of the following emerging payments is considered a closed loop network - Ans Dwolla
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to or less
than - Ans 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 - Ans credit risk
which card payment system par cipant is responsible for represen ng merchants in accep ng
card transac ons - Ans Acquirer
which ACH record contains the Company Entry Descrip on field - Ans Company/Batch Header
Record
under 31 CFR Part 210 an RDFI establishes a contractual rela onship with the Federal
Government when it - Ans Accepts a benefit payment
which party is considered the Sending Point - Ans The ACH par cipant that sends the ACH file
to the ACH Operator
which of the following techniques would a financial ins tu on use to mi gate credit risk - Ans
SeFng exposure limits
RDFIs must iden fy the sender of a P2P payment on the consumer's periodic statement. the
sender's name is found in the - Ans Individual Iden fica on Number field
ABC Credit Union becomes aware of a member's death and flags the account. The following
ACH entries are received aHer her date of death. To limit its liability, which payment must be
returned - Ans Social Security benefit payment in the name of the deceased
An RDFI that posts ACH entries based solely on the account number is - Ans Not liable for any
entries sent be the ODFI in error
