Wespay AAP Practice Exams (Full) Questions and Answers Graded A+
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AAP
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AAP
Wespay AAP Practice Exams (Full) Questions and Answers Graded A+
1. The ____________________ is a processing and delivery system that provides for the distribution and settlement of electronic credits and debits among financial institutions.
ACH Network
2. The ACH movement began in the ear...
Wespay AAP Practice Exams (Full)
Questions and Answers Graded A+
1. The ____________________ is a processing and delivery system that provides for
the distribution and settlement of electronic credits and debits among financial
institutions. - answer ACH Network
2. The ACH movement began in the early ____________________ when a group of
California bankers formed the Special Committee on Paperless Entries (SCOPE). -
answer 1970s
3. In 1974, __________________was formed to coordinate the ACH movement
nationwide. - answer (National Automated Clearing House Association)
4. The main benefits associated with the use of the ACH network are
__________________________ and improved productivity over paper check
transactions. - answer cost reduction
5. ACH Operators may be private companies or the Federal Reserve Bank. The current
private sector operator is the ______________________________________. - answer
Electronic Payments Network.
6. ______________________________________provide management, education,
assistance, and services to link all types of financial institutions (commercial banks,
savings banks and credit unions) across the United States. - answer Regional
Payments Associations
7. The ACH system is a __________________________________, store-and-forward
system. Transactions received by the financial institution during the day are stored and
processed later in a batch mode. - answer batch processing
8. The ____________________________ is the entity that agrees to initiate ACH
Entries into the payment system according to an arrangement with a Receiver. - answer
Originator
9. An ___________________________________ is the central clearing facility
operated by a private organization or a Federal Reserve Bank (FRB) on behalf of DFIs
to or from which participating DFIs transmit or receive ACH Entries. - answer
Automated Clearing House Operator
10. The _________________________________________ is the institution that
receives payment instructions from the
,____________________________________and forwards Entries to the ACH Operator.
- answer Originating Depository Financial Institution
Originator
11. A ______________________ is a natural person or an organization that has
authorized an Originator to initiate an ACH Entry to its account with the RDFI. A
____________________________ can either be a company or a consumer, depending
on the type of transaction. - answer Receiver
12. Unlike a check, which is always a debit instrument, an ACH Entry may be either a
________________________ or a ____________________________ Entry. - answer
credit
debit
13. Dividends, payrolls and government vendor payments are examples of ACH
__________. - answer credits
14. Before any transaction is initiated, the Originator and ODFI execute an
_____________________________ to use the ACH network to originate payments. -
answer agreement
The ______________________________ should bind the originating company to the
_________________________, define the parameters of the relationship between the
two parties, identify processing requirements for the specific application(s), and
establish liability and accountability for procedures related to certain application(s). -
answer agreement
NACHA Operating Rules
16. The __________________ is one of the world's oldest forms of payment, and today
exists as one of the most common methods of payment, both in the United States and
internationally. - answer Check
17. The traditional Check is a ____________________ payment instrument that is
widely accepted and used by businesses, governments, and consumers as payment for
virtually a form of commerce. - answer debit
18. A distinguishing characteristic of Fedwire is that it is a real-time, gross-settlement
system which operates in a real-time environment if it processes each transaction as it
is initiated, rather than _______________________ by
__________________________. - answer processing
batch
19. The Fedwire Securities are held and transferred in _________________________
form known as Book-Entry Securities; unlike the Fedwire Funds Service, the Fedwire
Securities Service is a ___________________________________ system with regard
to payments. - answer electronic
, debit/pull
20. The Fedwire Funds Service is a _______________________system in which only
the Originator's financial institution can remove funds from its Federal Reserve account.
- answer credit/push
21. _________________________________________ are not true payment
instruments because they do not result in a direct transfer of funds from the Payor to the
Payee. - answer Credit cards
22. _____________________________________________ are used by consumers at
ATMs to withdraw cash from their accounts and may be used as a means of electronic
payment, either on-line or off-line, for goods or services purchased at a retail
establishment. - answer Debit cards
23. Unlike a ____________________________ card, where the cost of goods is
charged to an account that is paid later and to which interest may be applied, the cost of
goods charged against a _____________________ card is taken directly from a
demand deposit account. - answer credit, debit
24. The two banking conventions that advanced paper check processing were ______
and ______. - answer Routing Numbers
MICR
25. The check system participant known as the Payee's Depository Financial Institution
is also known as the _________. - answer Bank of First Deposit (BOFD)
26. A check participant who creates an image of the original check is known as the
_________________________. - answer Truncating Bank
27. When a check is sent to another depository institution for collection, it is called a
_____ check. - answer transit
28. What type of card is similar to a debit card but the balance is not associated with a
DDA or other financial institution account? ______________ - answer
Prepaid/Stored Value
29. The use of a ___________ debit card results in immediate funds transfer. - answer
PIN/Online
30. Each transfer of funds on this payment system is considered irrevocable:
__________. - answer wire
Time Frame for a Standard Return (i.e. NSF, closed account, etc.) - answer
__2__Banking Days
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