AAP Practice Exam 128 Questions with Verified 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
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
