AAP practice exam questions and Answers
Reinitiated entries must be identified by 'RETRY PYMT' in the
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
10 banking...
AAP practice exam questions and
Answers
Reinitiated entries must be identified by 'RETRY PYMT' in the - 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 - answer 10 banking
days
which rule or regulations governs the processing of federal government ACH payments
- 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 - 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 - answer ODFI
Direct access is defined as - 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 - answer 30 calendar days of NACHS's request
which settlement is true regarding return processing in a same-day environment -
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 - 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 - answer remittances addenda record
a reclamation entry is subordinate to claims or potential claims by which entity - answer
Veterans Administration
SmallTown Bank has contracted with MegaBank to process its ACH files. Because of
this relationship, Smalltown Bank is exposed to - answer Third-party risk
,what is the difference between the Fedwire Funds Service and Fedwire Securities
Service - 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 - answer
regulation E
a VAN is best described as a - 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 -
answer consumers check in the amount of $25,000
which of the following emerging payments is considered a closed loop network - answer
Dwolla
to be an eligible Destroyed Check Entry (XCK) a check must be in an amount equal to
or less than - 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 - answer
credit risk
which card payment system participant is responsible for representing merchants in
accepting card transactions - answer Acquirer
which ACH record contains the Company Entry Description field - answer
Company/Batch Header Record
under 31 CFR Part 210 an RDFI establishes a contractual relationship with the Federal
Government when it - answer Accepts a benefit payment
which party is considered the Sending Point - answer The ACH participant that
sends the ACH file to the ACH Operator
which of the following techniques would a financial institution use to mitigate credit risk -
answer Setting exposure limits
RDFIs must identify the sender of a P2P payment on the consumer's periodic
statement. the sender's name is found in the - answer Individual Identification
Number field
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 - answer Social Security benefit payment in the name of
the deceased
, An RDFI that posts ACH entries based solely on the account number is - answer Not
liable for any entries sent be the ODFI in error
which of the following check payment system participants is responsible for the clearing
and settlement of checks - answer Correspondent Bank
if an ODFI receives a contested dishonored return,what alternative do they have to
reclaim the money - answer they must request the money back outside of the ACH
Network
which of the following SEC codes can be used for both zero-dollar entries and payment-
related information - answer CTC and CCD
the risk that the inability or unwillingness of one funds transfer system participant to
settle its commitments causes other participants be unable to settle their commitment is
- answer Systemic Risk
NACHA has the authority to begin a rules enforcement proceeding and could assess
fines if an Originator exceeds the - answer Unauthorized Return Rate threshold
which of the following federal government payments not subject to reclamation - answer
IRS tax refund
which of the following options can decrease an ODFIs credit risk - answer
Prefunding
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 - answer
5 banking days from receiving notice of the death
promote entries under the ACH Rules are for optional use by the Opiginator. An ODFI
may require an Originator to send a prenote by including the requirement in an - answer
Origination Agreement
which of the following is exempt from regulation E - answer domestic wire transfer
which federal reserve regulator defines a non transaction account - answer
regulation D
the financial organization master file fomf is - answer a department of treasury list of
financial institutions receiving federal government ACH payments
which of the following specifically addresses the need to cover commercially reasonable
security procedures between an ODFI and the originator - answer UCC 4A
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