AAP PRACTICE EXAM QUESTIONS
AND ANSWERS
Reinitiated entries must be identified by 'RETRY PYMT' in the
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 ...
Reinitiated entries must be identified by 'RETRY PYMT' in the
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 ANSWER 10 banking days
which rule or regulations governs the processing of federal
government ACH payments 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
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 ANSWER ODFI
Direct access is defined as 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 ANSWER 30 calendar days of
NACHS's request
which settlement is true regarding return processing in a same-
day environment 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
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 ANSWER remittances addenda record
a reclamation entry is subordinate to claims or potential claims
by which entity ANSWER Veterans Administration
SmallTown Bank has contracted with MegaBank to process its
ACH files. Because of this relationship, Smalltown Bank is
exposed to ANSWER Third-party risk
what is the difference between the Fedwire Funds Service and
Fedwire Securities Service 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 ANSWER regulation E
a VAN is best described as a 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 ANSWER consumers check in the
amount of $25,000
which of the following emerging payments is considered a
closed loop network ANSWER Dwolla
, to be an eligible Destroyed Check Entry (XCK) a check must be
in an amount equal to or less than 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 ANSWER credit
risk
which card payment system participant is responsible for
representing merchants in accepting card transactions
ANSWER Acquirer
which ACH record contains the Company Entry Description
field ANSWER Company/Batch Header Record
under 31 CFR Part 210 an RDFI establishes a contractual
relationship with the Federal Government when it ANSWER
Accepts a benefit payment
which party is considered the Sending Point ANSWER The
ACH participant that sends the ACH file to the ACH Operator
which of the following techniques would a financial institution
use to mitigate credit risk ANSWER Setting exposure limits
RDFIs must identify the sender of a P2P payment on the
consumer's periodic statement. the sender's name is found in
the ANSWER Individual Identification Number field
ABC Credit Union becomes aware of a member's death and
flags the account. The following ACH entries are received after
her date of death. To limit its liability, which payment must be
returned ANSWER Social Security benefit payment in the name
of the deceased
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