PRACTICE PAPER SOLUTIONS MASTER FILE
◉ which of the following establishes reserve requirements for
depository financial institutions. Answer: regulation D
◉ unlike the NACHA Operating rules the federal government does
not require written authorization for which SEC code. Answer: POP
◉ which sec code adopted the bank secrecy act's travel rule. Answer:
IAT
◉ which regulatory body requires the RDFI to perform a review of
all parties to an IAT entry including remittance and foreign
correspondent bank information found in the addends. Answer:
OFAC
◉ a process used by the Bureau of the Fiscsl Services ( formerly
FMS) to research non receipt of SSA SSI and va benefits payments.
Answer: tele-trace
◉ regulation governs the processing of checks transactions. Answer:
regulation J
, ◉ first bank is creating XCK entries due to a lost cash letter
according to the ACH rules first bank needs to keep a copy of the
items to which each XCK entry relates for. Answer: 6 years
◉ A U.S.-domiciled money transmitter receives a payment order
from a foreign customer at one of its foreign branch offices to send
funds to a Receiver in the U.S. The money transmitter makes a book
entry to record the transaction on the books of its offices in both
countries and creates an ACH entry to send the funds to the Receiver
at his bank in the U.S. What type of ACH transaction would be
originated by the money transmitter?. Answer: The resulting ACH
credit to the U.S. Receiver would be an IAT
◉ Stan purchases a drill from the local hardware store using a check.
His check is returned as NSF. The hardware store has a policy to
collect NSF items using RCK. According to the ACH Rules, the
hardware store is required to:. Answer: Keep a copy of the front and
back of the check for 7 years
◉ The Acquirer in the Card Payments System is:. Answer: A financial
institution that represents Merchants in accepting POS transactions
◉ The ACH Network is governed by all of the following except.
Answer: Electronic Funds Transfer Mandate