AAP PRACTICE EXAM QUESTIONS WITH 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
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
