AAP practice exam questions Latest Update
2024-2025 Actual Exam from Credible Source
with 130 Questions and 100% Verified Correct
Answers Guaranteed A+ Approved by Professor
A biller collecting a service fee for payments returned NSF provides the proper notice at
the
time a check item is accepted or entry is authorized. To identify the debit as a service
fee,
the biller must format the Company Entry Description field as follows: - CORRECT
ANSWER: RETURN FEE
a business client contacts you to dispute a debit that posted to the account three weeks
ago. in researching you find that it is a CCD debit What can you do to help get the
monies back - CORRECT ANSWER: Contact the ODFI to request a late return
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
A DFI must conduct an ACH risk assessment based on: - CORRECT ANSWER: Its
regulator's requirements
A Participating DFI must keep records of all ACH entries for - CORRECT ANSWER: 6
years
a process used by the Bureau of the Fiscsl Services ( formerly FMS) to research non
receipt of SSA SSI and va benefits payments - CORRECT ANSWER: tele-trace
A Receiver contacts her RDFI on October 4 and claims a PPD entry appearing on her
,September 4 statement was never authorized. What action should the RDFI take first -
CORRECT ANSWER: Have the Receiver complete a Written Statement of
Unauthorized Debit
a reclamation entry is subordinate to claims or potential claims by which entity -
CORRECT ANSWER: Veterans Administration
A Report of Possible Rules Violation must be submitted within - CORRECT ANSWER:
90 days of the occurrence of the violation
A third-party processing ACH transactions on behalf of an RDFI is referred to as a(n): -
CORRECT ANSWER: Receiving Point
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?
- CORRECT ANSWER: The resulting ACH credit to the U.S. Receiver would be an IAT
a VAN is best described as a - CORRECT ANSWER: communications network for
sending and receiving data
ABC Company initiates a single payment to cover all charges incurred on five invoices
from XYZ Company. Which SEC code - CORRECT ANSWER: CTX
ABC Company sends a monthly retirement payment and then receives notice that the
retiree passed away 2 weeks prior to the payment date. How many days does ABC
Company have to initiate a reclamation entry or written demand for payment -
CORRECT ANSWER: 5 banking days from receiving notice of the death
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 - CORRECT ANSWER: Social Security benefit payment in
the name of the deceased
ABC Savings and Loan received an ACH credit with an unknown account number. What
action should they take to resolve the issue - CORRECT ANSWER: Return the entry so
it is made available to the ODFI at opening of business on the
second banking day following the Settlement Date of the original entry
According to the NACHA Operating Rules, how many times can an Originator reinitiate
a PPD entry that has been returned as NSF? - CORRECT ANSWER: TWICE
according to UCC 4A which of the following items may be altered through an origination
Agreement - CORRECT ANSWER: originators requirement to inform its ODFI of any
errors in entries transmitted within 90 days
After its fourth Rules Violation for failure to comply with an NOC related to a recurring
payment, an ODFI is assessed a Class 2 Rules Violation resulting in a $100,000 fine.
The ODFI made every attempt to let its Originator know to correct the payment
information; however, the Originator continued to send the entry incorrectly. The ODFI is
pursuing legal action against the Originator to recover the $100,000 fine. This dispute is
interpreted according to the - CORRECT ANSWER: State contract law
An ODFI transmitted an erroneous file. The reversing file must be originated so that it is
made available to the RDFI within - CORRECT ANSWER: banking days after the
settlement of the original entry and within 24 hours of discovery
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
An Originator may request an acknowledgment entry be transmitted by the RDFI in
response to - CORRECT ANSWER: ACK for a CCD; ATX for a CTX
2024-2025 Actual Exam from Credible Source
with 130 Questions and 100% Verified Correct
Answers Guaranteed A+ Approved by Professor
A biller collecting a service fee for payments returned NSF provides the proper notice at
the
time a check item is accepted or entry is authorized. To identify the debit as a service
fee,
the biller must format the Company Entry Description field as follows: - CORRECT
ANSWER: RETURN FEE
a business client contacts you to dispute a debit that posted to the account three weeks
ago. in researching you find that it is a CCD debit What can you do to help get the
monies back - CORRECT ANSWER: Contact the ODFI to request a late return
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
A DFI must conduct an ACH risk assessment based on: - CORRECT ANSWER: Its
regulator's requirements
A Participating DFI must keep records of all ACH entries for - CORRECT ANSWER: 6
years
a process used by the Bureau of the Fiscsl Services ( formerly FMS) to research non
receipt of SSA SSI and va benefits payments - CORRECT ANSWER: tele-trace
A Receiver contacts her RDFI on October 4 and claims a PPD entry appearing on her
,September 4 statement was never authorized. What action should the RDFI take first -
CORRECT ANSWER: Have the Receiver complete a Written Statement of
Unauthorized Debit
a reclamation entry is subordinate to claims or potential claims by which entity -
CORRECT ANSWER: Veterans Administration
A Report of Possible Rules Violation must be submitted within - CORRECT ANSWER:
90 days of the occurrence of the violation
A third-party processing ACH transactions on behalf of an RDFI is referred to as a(n): -
CORRECT ANSWER: Receiving Point
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?
- CORRECT ANSWER: The resulting ACH credit to the U.S. Receiver would be an IAT
a VAN is best described as a - CORRECT ANSWER: communications network for
sending and receiving data
ABC Company initiates a single payment to cover all charges incurred on five invoices
from XYZ Company. Which SEC code - CORRECT ANSWER: CTX
ABC Company sends a monthly retirement payment and then receives notice that the
retiree passed away 2 weeks prior to the payment date. How many days does ABC
Company have to initiate a reclamation entry or written demand for payment -
CORRECT ANSWER: 5 banking days from receiving notice of the death
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 - CORRECT ANSWER: Social Security benefit payment in
the name of the deceased
ABC Savings and Loan received an ACH credit with an unknown account number. What
action should they take to resolve the issue - CORRECT ANSWER: Return the entry so
it is made available to the ODFI at opening of business on the
second banking day following the Settlement Date of the original entry
According to the NACHA Operating Rules, how many times can an Originator reinitiate
a PPD entry that has been returned as NSF? - CORRECT ANSWER: TWICE
according to UCC 4A which of the following items may be altered through an origination
Agreement - CORRECT ANSWER: originators requirement to inform its ODFI of any
errors in entries transmitted within 90 days
After its fourth Rules Violation for failure to comply with an NOC related to a recurring
payment, an ODFI is assessed a Class 2 Rules Violation resulting in a $100,000 fine.
The ODFI made every attempt to let its Originator know to correct the payment
information; however, the Originator continued to send the entry incorrectly. The ODFI is
pursuing legal action against the Originator to recover the $100,000 fine. This dispute is
interpreted according to the - CORRECT ANSWER: State contract law
An ODFI transmitted an erroneous file. The reversing file must be originated so that it is
made available to the RDFI within - CORRECT ANSWER: banking days after the
settlement of the original entry and within 24 hours of discovery
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
An Originator may request an acknowledgment entry be transmitted by the RDFI in
response to - CORRECT ANSWER: ACK for a CCD; ATX for a CTX
