APRP TESTS COMPREHENSIVE
EXAMINATION GUIDE 2026 COMPLETE
QUESTIONS AND ANSWERS
◉ Corresponding Bank.
Answer: A private depository institution, bankers' bank, or Federal
Reserve Bank providing payment clearing or settlement services to a
BOFD, Collecting Bank, or Paying Bank.
◉ Bankers' Bank.
Answer: An institution owned by a depository institution that
typically provides correspondent services, including check clearing
and settlement services to its owners and other banks.
◉ Clearing House.
Answer: An institution comprised of member depository institutions
for the purpose of exchanging, clearing and settling check payments
among members.
◉ Payor's Depository Financial Institution.
Answer: Depository Financial Institution associated with the routing
number encoded in the MICR line on a check.
,◉ On-Us Checks.
Answer: Checks for which the payor and payee have accounts at the
same financial institution.
◉ Transit Checks.
Answer: Checks sent to another depository financial institution for
collection, sometimes through one or more intermediary financial
institutions.
◉ Remote Deposit Capture (RDC).
Answer: A deposit transaction delivery system, allows a financial
institution to receive digital information from deposit documents
captured at remote locations.
◉ Remotely Created Check.
Answer: Paper Check that does not bear a signature of the person on
whose account the check is drawn. In place of the signature the
check bears the account holder's printed/typed name or a statement
that the account holder authorized the check.
◉ 1962.
Answer: Version of the Uniform Commercial Code (UCC) was
adopted by all 50 states.
,◉ UCC Article 3.
Answer: UCC Article that governs negotiable instruments including
checks.
◉ UCC Article 4.
Answer: UCC Article the governs bank deposits, including check
collection.
◉ New York and South Carolina.
Answer: Revised Article 4 (1990 Official Text) has been
implemented by all states except for which two?
◉ The Check Clearing Act for the 21st Century.
Answer: Implemented by Regulation CC, fosters innovation in the
check payment system and enhances efficiency by reducing legal
impediments to check truncation. This law facilitates check
truncations by creating a new negotiable paper instrument called
Substitute Check or Image Replacement Document (IRD)
◉ Regulation CC.
Answer: In 2006, shifted liability for unauthorized remotely created
checks to the institution where it was first deposited. (depository
bank)
, ◉ Regulation CC.
Answer: Promulgated by the Federal Reserve Board in 1988 to
implement Expedited Funds Availability Act.
◉ Fedwire Funds Service.
Answer: Real-time gross settlement system used to settle interbank
funds transactions such as federal funds purchases, corporate
payments and other large value payments.
◉ Fedwire Securities Service.
Answer: Provides a mechanism for the issuance, transfer,
maintenance and safekeeping of securities issued by the US
Treasury, federal government agencies, government sponsored
enterprises (GSEs) and certain international organizations.
◉ Regulation J Subpart B.
Answer: Governs the rights and responsibilities of the Federal
Reserve Bank, banks receiving payment orders from the Federal
Reserve Banks, beneficiaries of the payment orders and other
parties.
◉ UCC 4a.
Answer: This article establishes the rights and obligations of various
participants in a funds transfer, including the originator,
intermediary institutions and the beneficiary.
EXAMINATION GUIDE 2026 COMPLETE
QUESTIONS AND ANSWERS
◉ Corresponding Bank.
Answer: A private depository institution, bankers' bank, or Federal
Reserve Bank providing payment clearing or settlement services to a
BOFD, Collecting Bank, or Paying Bank.
◉ Bankers' Bank.
Answer: An institution owned by a depository institution that
typically provides correspondent services, including check clearing
and settlement services to its owners and other banks.
◉ Clearing House.
Answer: An institution comprised of member depository institutions
for the purpose of exchanging, clearing and settling check payments
among members.
◉ Payor's Depository Financial Institution.
Answer: Depository Financial Institution associated with the routing
number encoded in the MICR line on a check.
,◉ On-Us Checks.
Answer: Checks for which the payor and payee have accounts at the
same financial institution.
◉ Transit Checks.
Answer: Checks sent to another depository financial institution for
collection, sometimes through one or more intermediary financial
institutions.
◉ Remote Deposit Capture (RDC).
Answer: A deposit transaction delivery system, allows a financial
institution to receive digital information from deposit documents
captured at remote locations.
◉ Remotely Created Check.
Answer: Paper Check that does not bear a signature of the person on
whose account the check is drawn. In place of the signature the
check bears the account holder's printed/typed name or a statement
that the account holder authorized the check.
◉ 1962.
Answer: Version of the Uniform Commercial Code (UCC) was
adopted by all 50 states.
,◉ UCC Article 3.
Answer: UCC Article that governs negotiable instruments including
checks.
◉ UCC Article 4.
Answer: UCC Article the governs bank deposits, including check
collection.
◉ New York and South Carolina.
Answer: Revised Article 4 (1990 Official Text) has been
implemented by all states except for which two?
◉ The Check Clearing Act for the 21st Century.
Answer: Implemented by Regulation CC, fosters innovation in the
check payment system and enhances efficiency by reducing legal
impediments to check truncation. This law facilitates check
truncations by creating a new negotiable paper instrument called
Substitute Check or Image Replacement Document (IRD)
◉ Regulation CC.
Answer: In 2006, shifted liability for unauthorized remotely created
checks to the institution where it was first deposited. (depository
bank)
, ◉ Regulation CC.
Answer: Promulgated by the Federal Reserve Board in 1988 to
implement Expedited Funds Availability Act.
◉ Fedwire Funds Service.
Answer: Real-time gross settlement system used to settle interbank
funds transactions such as federal funds purchases, corporate
payments and other large value payments.
◉ Fedwire Securities Service.
Answer: Provides a mechanism for the issuance, transfer,
maintenance and safekeeping of securities issued by the US
Treasury, federal government agencies, government sponsored
enterprises (GSEs) and certain international organizations.
◉ Regulation J Subpart B.
Answer: Governs the rights and responsibilities of the Federal
Reserve Bank, banks receiving payment orders from the Federal
Reserve Banks, beneficiaries of the payment orders and other
parties.
◉ UCC 4a.
Answer: This article establishes the rights and obligations of various
participants in a funds transfer, including the originator,
intermediary institutions and the beneficiary.
