Download AAP EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS and more Exams Nursing in PDF only on Docsity! AAP EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS AAP EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS The fee being charged to a FI's account holder for the use of an ATM not owned by the FI is increasing from $3.00 to $5.00. According to Regulation E, what timeframe does the FI need to notify the consumer about a change that results in greater consumer liability? - Precise Answer โโ1. - Precise Answer โโa. 10 calendar days - Precise Answer โโb. 30 days - Precise Answer โโc. 21 days - Precise Answer โโd. 10 business days Which of the following required the Federal Reserve to fully charge for the services it provides, thus making the payments marketplace more competitive? - Precise Answer โโ2. - Precise Answer โโa. Federal Reserve Act; Sections 11 & 13 - Precise Answer โโb. Monetary Control Act of 1980 - Precise Answer โโc. Check Conversion - Precise Answer โโd. TRADES Several ARC Entries posted to Mr. Jones' account on Monday, January 24th. Mr. Jones' called his financial institution on Monday, January 31st to inform them that he didn't authorize Entries. The check serial numbers associated with the ARC Entries were out of the range of checks that were posting to Mr. Jones' account. What return reason code would the financial institution use to return the ARC Entries? - Precise Answer โโ6. The financial institution should obtain stop payment forms from Mr. Jones and return the Entries using the R08 return reason code. - Precise Answer โโa. The financial institution cannot return the ARC entries because it beyond the allowed time frame. - Precise Answer โโb. The financial institution should obtain stop payment forms from Mr. Jones and return the Entries using the R10 return reason code. - Precise Answer โโc. The financial institution will have Mr. Jones complete a Written Statement of Unauthorized Debit for the ARC Entries and return the Entries using the R10 return reason code. - Precise Answer โโd. Community Financial Institution made the decision to begin offering ACH Origination as a product to their business customers. The financial institution developed an ACH Origination Agreement for their business customers to sign. The NACHA Operating Rules require which of the following to be included in the agreement: - Precise Answer โโ7. The financial institution's fees for using their ACH Origination product. - Precise Answer โโa. The business customer's user names for the ACH Origination product. - Precise Answer โโb. The financial institution's contact information. - Precise Answer โโc. The financial institution's restriction on the type of Entries that may be originated. - Precise Answer โโd. Recently, Sue compared rates on automobile insurance in her area. Sue found GoodDealz Insurance that offered her a better rate than the company that she has coverage with today. Sue signs a policy for automobile insurance with GoodDealz Insurance and authorizes them to ACH debit her account monthly for the premium. Sue contacts her financial institution to place stop payment on the all future ACH debits from her old insurance company. How can Sue's financial institution handle her request? - Precise Answer โโ8. The financial institution can explain to Sue that her stop payment request is only good to stop one Entry and she will have to contact her old insurance company to stop future ACH debits from them. - Precise Answer โโa. The financial institution can take Sue's stop payment request and stop all future Entries from her old insurance company. - Precise Answer โโb. The financial institution can explain to Sue that they cannot stop the ACH debit Entries from her old insurance company and that she will have to contact them directly to stop the Entries. - Precise Answer โโc. The financial institution can explain to Sue that she has to wait until the ACH debit Entries post to her account at which time she will have to complete a Written Statement of Unauthorized Debit, and they will return the Entries using the R10 return reason code. - Precise Answer โโd. What is an Incomplete Transaction? - Precise Answer โโ9. A partial or erroneous payment to the intended third-party payee - Precise Answer โโa. A payment to an intended third-party payee that was not made or completed by the Originator, Third-Party Sender, or ODFI of a corresponding debit entry authorized by the Receiver for the purpose of funding the payment to the third-party payee - Precise Answer โโb. UCC 3 and UCC 4 - Precise Answer โโa. Regulation J and Regulation CC - Precise Answer โโb. Regulation D and Regulation - Precise Answer โโc. UCC4A and Regulation Z - Precise Answer โโd. - Precise Answer โโ What laws govern the collections of checks as images between financial institutions? - Precise Answer โโ14. Contract law between collecting financial institutions - Precise Answer โโa. Regulation CC - Precise Answer โโb. Regulation E - Precise Answer โโc. UCC Article 4A - Precise Answer โโd. What type of risk may be incurred by the RDFI if they choose to pay an ACH debit entry that overdraws the Receiver's account? - Precise Answer โโ15. Operational Risk - Precise Answer โโa. Credit Risk - Precise Answer โโb. Fraud Risk - Precise Answer โโc. Systemic Risk - Precise Answer โโd. When is settlement considered final for ACH credit Entries? - Precise Answer โโ16. Credit Entries are final on the Settlement Date - Precise Answer โโa. Credit Entries are final on the effective entry date - Precise Answer โโb. Credit Entries are final the day following the Settlement Date - Precise Answer โโc. Credit Entries are final the day following the effective entry date - Precise Answer โโd. The NACHA Operating Rules apply to all entries transmitted between - Precise Answer โโ17. The Originator and the ODFI - Precise Answer โโa. The RDFI and the Receiver - Precise Answer โโb. The Third-Party Service Provider and the ODFI - Precise Answer โโc. The ODFI and the ACH Operator - Precise Answer โโd. A TEL entry can be initiated in the following situations except when: - Precise Answer โโ18. There is an existing relationship between the originator and consumer - Precise Answer โโa. The originator initiates the call to the consumer with whom they have no prior relationship - Precise Answer โโb. There is a taped authorization - Precise Answer โโc. The consumer initiates the call - Precise Answer โโd. audit. From the following choices, please select the one that is not a requirement of this WEB annual audit. - Precise Answer โโ22. Reporting requirements of unauthorized returns relative to originated entries - Precise Answer โโa. Personnel and access controls - Precise Answer โโb. Physical security of computer equipment - Precise Answer โโc. Network security against unauthorized access - Precise Answer โโd. Which of the following is the smallest unit within an Addenda record using the American National Standards Institute's Accredited Standards Committee X12 transaction data sets? - Precise Answer โโ23. Data segment - Precise Answer โโa. Data element - Precise Answer โโb. BPR and BPS segment - Precise Answer โโc. Data delimiter - Precise Answer โโd. In ANSI ASC X12 Transaction Data sets, which of the following is true relating for the \ (backslash) or ~ (tilde) when used within an Addenda record? - Precise Answer โโ24. Called a delimiter and separates the data segments - Precise Answer โโa. Called a terminator and separates the data elements - Precise Answer โโb. Called a terminator and separates the data segments - Precise Answer โโc. Called a delimiter and separates the data elements - Precise Answer โโd. In an ACH record, how many characters are allowed for payment related information? - Precise Answer โโ25. 94 - Precise Answer โโa. 80 - Precise Answer โโb. 23 - Precise Answer โโc. 60 - Precise Answer โโd. This circular provides guidelines to national banks on network risk identification and assessing risk responsibilities. - Precise Answer โโ26. TRADES Circular - Precise Answer โโa. OCC 235 - Precise Answer โโb. FRB Circular #2 - Precise Answer โโc. 31 CFR - 370 - Precise Answer โโd. Super Paper Inc. provides toilet paper to all the national parks and wants to be paid via Vender Express from the Federal Government for their services. In order for Super Paper Inc. to enroll in Vender Express, they would have to complete which of the following forms? - Precise Answer โโ27. Bureau of Fiscal Services Form SF 1200 - Precise Answer โโa. SF 1199A - Precise Answer โโb. FOMF SF1200 - Precise Answer โโc. 120 days - Precise Answer โโa. 5 banking days - Precise Answer โโb. 15 banking days - Precise Answer โโc. 30 days - Precise Answer โโd. What is the deadline for the initial SAR (Suspicious Activity Report) filing? - Precise Answer โโ31. Day 0 - Precise Answer โโa. Day 30 - Precise Answer โโb. Day 90 - Precise Answer โโc. Day 150 - Precise Answer โโd. Mount Rushmore National Park attracts many tourists each year and several purchases are made in the gift shop each day using multiple methods of payment. The gift shop accepts checks with a valid picture ID. If the checks received meet the requirements as an eligible source document, they may be converted. Which of the following best describes POP (Point-of-Purchase) authorization requirements for the Federal Government, according to 31 Code of Federal Regulations Part 210? - Precise Answer โโ32. Notice with authorization language posted, authorization language provided to the Receiver, and a written authorization - Precise Answer โโa. Notice with authorization language posted and authorization language provided to the Receiver - Precise Answer โโb. Notice with authorization language - Precise Answer โโc. Notice with authorization language posted, authorization language provided to the Receiver, with both notices containing a working customer service phone number - Precise Answer โโd. The legal framework for the Check Payment System is defined as: - Precise Answer โโ33. Uniform Commercial Code Articles 3 & 4, Reg CC, Reg J and Federal Reserve Operating Circular 4 - Precise Answer โโa. Uniform Commercial Code Article 3, Regulation J, Regulation CC and Federal Reserve Operating Circular 3 - Precise Answer โโb. Federal Reserve Operating Circular 3, Reg CC, Reg Z, OFAC, ECCHO and UCC 3 & 4 - Precise Answer โโc. Regulation J, ECCHO, Regulation CC, Uniform Commercial Code Articles 3 & 4, Federal Reserve Operating Circular 3 - Precise Answer โโd. Participants in the Fedwire Funds Transfer and Securities Service are: - Precise Answer โโ34. Originator, Originating Depository Financial Institution, Sender Bank, Acquirer, Federal Reserve Bank, Receiver Bank, Beneficiary - Precise Answer โโa. Originator, Originating Bank, Federal Reserve Bank, Receiver Bank, Beneficiary - Precise Answer โโb. Originator, Originating Bank, Federal Reserve Bank, Receiving Depository Financial Institution, Beneficiary - Precise Answer โโc. Originator, Sender Bank, Federal Reserve Bank, Receiver's Bank, Receiver - Precise Answer โโd. Super Paper Inc. provides toilet paper to all the national parks and wants to be paid via Direct Deposit from the Federal Government for their services. In order for Super Paper Inc. to enroll in Direct Deposit, they When they sign a contract with Financial Management Service - Precise Answer โโd. Darren is studying for his AAP Exam and a "study buddy" presented him with the following question. Which of the following are considered 'mandatory fields' in the Company Batch Header Record? - Precise Answer โโ38. Transaction Code, SEC Code, Settlement Date, Company ID - Precise Answer โโa. SEC Code, Company Entry Description, Batch number, Addenda Record Indicator - Precise Answer โโb. Company Entry Description, SEC Code, Company Name, Service Class Code - Precise Answer โโc. SEC Code, Company Name, Service Class Code, Immediate Destination - Precise Answer โโd. Which of the following types of entries are non-monetary transactions? - Precise Answer โโ39. ACK, ATX, DNE, TRX - Precise Answer โโa. ATX, DNE, COR, ACK - Precise Answer โโb. ADV, ATX, DNE, CTX - Precise Answer โโc. DNE, ENR, COR, TRC - Precise Answer โโd. Which of the following best defines a Shared Network Transaction? - Precise Answer โโ40. SHR Entries are initiated in a shared network where the ODFI and RDFI have an agreement in addition to the NACHA Operating Rules to process such entries - Precise Answer โโa. SHR Entries are initiated in a shared network where there is no additional agreement outside the NACHA Operating Rules between the ODFI and RDFI to process such entries - Precise Answer โโb. SHR Entries are initiated in a non-shared network where the ODFI and RDFI have an agreement in addition to the NACHA Operating Rules to process such entries - Precise Answer โโc. SHR Entries are initiated in a non-shared network where there is no additional agreement outside the NACHA Operating Rules between the ODFI and RDFI to process such entries - Precise Answer โโd. - Precise Answer โโ Delores at First National Bank is working on written procedures for processing ACH Returns. While creating the procedures, she decides to create a list of the Return Reason Codes that follow the 60-calendar day return timeframe and require the Written Statement of Unauthorized Debit completed and signed and which one do not require the form. From the list below, which ones do not require the Written Statement of Unauthorized Debit (WSUD)? - Precise Answer โโ41. R52-Stop Payment on Item. R53-Item and RCK Presented for Payment and R33-Return of XCK Entry - Precise Answer โโa. R33-Return of XCK Entry, R52-Stop Payment on Item and R37-Source Document Presented for Payment - Precise Answer โโb. R38-Stop Payment on Source Document and R52-Stop Payment on Item - Precise Answer โโc. R38-Stop Payment on Source Document, R52-Stop Payment on Item and R33-Return of XCK Entry - Precise Answer โโd. A merchant deposits checks at their financial institution and when the FI is imaging the checks, there is a problem with one of the items as the check-writer used pink gel pen. Utilizing the ACH Rules, the ODFI creates a Destroyed Check Entry. According to the NACHA Operating Rules, certain format requirements are needed when creating this entry. Please choose the best possible answer that outlines the requirements for Destroyed Check Entry in Appendix Three. - Precise Answer โโ42. On October 29, a consumer is contacting their financial institution relating to an error on their statement dated September 1. According to Regulation E, the FI begins the initial investigation to determine if there is an error, and within 10 business days will determine if there is an error. If there is an error, the FI will correct the error within one business day and notify the consumer within three business days. If the FI has not resolved within 10 business days, they will issue provisional credit and continue the investigation, but they must have it completed within how many days? - Precise Answer โโ45. 45 business days - Precise Answer โโa. 45 calendar days - Precise Answer โโb. 60 calendar days from statement date - Precise Answer โโc. 10 business days - Precise Answer โโd. Social Security learned of Rita Johnson's death on September 20. Rita's date of death was March 1 of that same year. According to the Green Book, what is the timeframe the Federal Government has to send the reclamation to the RDFI? - Precise Answer โโ46. 120 days from the date of death - Precise Answer โโa. 6 years from when they learn of the death - Precise Answer โโb. 120 days from when they learn of the death - Precise Answer โโc. 6 years from the date of death - Precise Answer โโd. Kip Anderson is requesting his financial institution to stop all future payments from ABC Company as he had revoked his authorization with them last month according to the terms outlined in the original authorization. According to the NACHA Operating Rules, which of the following best describes how long the RDFI will leave the Stop Payment request on the system? - Precise Answer โโ47. Until all the payments have been returned for that specific Originator - Precise Answer โโa. Until the Receiver withdraws the Stop Pay request or until all such debits have been returned for that specific Originator - Precise Answer โโb. Until the Receiver withdraws the Stop Pay request or until all debits are returned from that specific Originator for up to 6 months - Precise Answer โโc. Until the Receiver withdraws the Stop Pay request or 6 months - Precise Answer โโd. USAD Credit Union as a Receiving Depository Financial Institution is working their exception report. There is a credit entry where the account number is an invalid account number structure. What is the timeframe to return the unposted/rejected credit entry? - Precise Answer โโ48. The return entry to be available to the ODFI by no later than opening of business on the second banking day following the RDFIs receipt of the entry from the Receiver - Precise Answer โโa. The return entry to be available to the ODFI by no later than opening of business on the second banking day following the settlement date of the entry - Precise Answer โโb. The return entry to be available to the ODFI by no later than opening of business on the second banking day following the RDFIs knowledge of the entry's account number not matching - Precise Answer โโc. There is no specific timeframe for the return entry - it's a credit transaction - Precise Answer โโd. The ACH Operator(s) edit and process ACH transactions according to the Rules. A specific field where the operator identifies to the RDFI whether the batch is from an ACH Operator (SEC Code ADV), a financial institution, or a federal government agency. The batch being sent to the RDFI by the Operator is from a financial institution, what data would be inserted and what is the field called? - Precise Answer โโ49.