AAP-2

Which of the following products (identified by SEC code) is initiated only by a Federal Government Agency?

Each ACH Operator must retain a record of all entries received or transmitted by it for a period of:

The ACH Network is governed by all of the following except:

Which of the following define an IAT entry?

Regarding notice of variable debits and the ACH Rules, if the Originator changes the scheduled date of an ACH debit entry, the Originator must provide a notice to the Receiver how many days in advance of the new date?

Which of the following Return Reason Codes would be used only by the ACH Operator:

Who is responsible for the administration, development, and enforcement of the NACHA Operating Rules and sound risk management practices for the ACH network?

Providing initial disclosures when a new account is opened and periodic disclosures monthly when there is an electronic funds transfer and at a minimum quarterly when there is no electronic funds transfers to the account is done according to:

State Bank receives a reclamation from the Veterans Administration for $1,200 relating to one of their account holders (Jim) who passed away 6 months earlier. Jim's account has a balance of $3,400. What is the maximum timeframe State Bank has to respond to the Reclamation entry before their Federal Reserve account is automatically debited for the full amount of the Reclamation?

Which of the following is not required to be included in the Regulation E initial disclosure?

Which ACH Rules Enforcement Classification results in suspension of an Originator and/or third-party sender?

Which of the following define a consumer credit application?

First Bank (the ODFI) is creating XCK entries due to a lost cash letter. The copies of the lost checks that they are using to create the XCK entries is available from their proof copies. According to the ACH rules, First Bank needs to keep a copy of the item(s) to which each XCK entry pertains for:

What is a mathematical process used to encode a message or a prescribed set of well defined rules or processes for the solution of a problem in a finite number of steps?

Acme Oil Distributors sends its ODFI two (2) debit files per month to debit each of its residential and business customers for delivery of heating oil. The debits are effective for the 15th and the 30th of each month. Acme makes a point of delivering both files to its ODFI on the 5th of each month. What actions should the ODFI take to ensure proper handling and timely submission to the ACH Operator of these debit files.

The Company Name field found in the Company/Batch Header Record is a:

The pastor at a local church passes away and the president at Lake Area Credit Union attends the funeral. The president relays this information to the credit union as the pastor was an account holder who was receiving governemnt benefit payments and very much liked my many folks within the town. Which of the following Return Reason Codes are required for use by an RDFI to officially notify a Federal Government Agency of the death of a federal government benefit payment recipient?

Regulation E does not apply to which of the following ACH products (identified by SEC Code)?

What is a return on an investment, usually expressed as a percentage of investment?

Which of the following lists the participants in the Check Processing System?

Which of the following types of companies would benefit from using the e-check applications in ACH?

To contest or correct a dishonored return entry timely, the RDFI must:

Choose the correct description of who the Acquirer is in the card network system is:

Sharon lost her access device last Tuesday and discovered she didn't have the card when she went to pump gas today, the following Thursday. Sharon's maximum consumer liability is $50 if she does which one of the following?

Steven opened his checking account with State Bank in February. In the initial disclosures provided by State Bank upon account opening, the ATM fee was clearly stated as beig $3.00 per transaction. Effective October 1, the fee for using an ATM will increase to $3.50. According to Regulation E, how many days prior notice is required when there is a change to the initial disclosures which results in greater consumer liability?

What is the retention specifics of what and how long for an XCK (Destroyed Check Entry)transaction?

Alphameric fields within an ACH record are:

Where is the standard entry class code located in a file?

Which of the following specifically addresses national banks and their need to evaluate large dollar payment system network risks and requries reporting this to top management and maintaining agreements with all parties who they do business with?

Which of the following is part of the legal framework for FedWire Funds Transfer?

As a financial institution, which of the following specify the requirements for reserves that as a depository institution,we must maintain at Federal Reserve Bank:

In what ACH Record will you find the Addenda Record Indicator?

If the transaction type code field for an IAT entry contains a secondary SEC Code (ARC, POP, BOC, etc) - in what record will you find the check serial number, terminal city and state, terminal id?

State Bank & Trust sends a PPD debit entry to Rose's account at Third Street Bank (RDFI). When the entry is received at the RDFI, Rose's account is overdrawn and the entry will be returned using R01 - insufficient funds. When First Bank & Trust received the entry as NSF, which of the following statements is true?

According to an original authorization between Sally and her health club, the monthly membership dues are $35.00 each month. The health club must raise their monthly membership dues to $40.00 each month to cover increasing costs due to the economy. Which of the following regulations require the health club to provide a 10-day notice when there is a change in dollar amount of the original authorization?

For a Destroyed Check Entry (XCK) transaction, what word(s) needs to be in the Company Name field?

There are _____ Arbitration procedures.

Which of the following relates to the requirement that all non-tax related payments by the Federal government be made via electronic funds transfer?

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?

First Bank received a PPD debit entry posting to a corporate/business account with a settlement date of today. Their corporate customer US Steel Company is stating they never authorized this transaction. When determining the return reason code and timeframe to do the return, First Bank can relay on what in helping them make their decision?

Regulation E defines specific requirements for all of the following except:

What two ACH applications require the check serial number to print on the consumer's statement?

To help reduce credit risk and as a prerequisite to Origination, an Originating Depository Financial Institution (ODFI) must have this in place for all their Originators before they transmit ACH entries?

In an effort to help combat credit risk this process needs to be in place by an ODFI for all Originators. This process needs to include how it will be monitored periodically and over multiple settlement dates and separately for SEC codes WEB and IAT. This process is called…

Stay Fit is an on-line web site for purchasing exercise equipment. On this site, visitors can select and purchase equipment by providing their checking account information. State Bank is the ODFI for Stay Fit (the company who owns this website) and has exposure limits in place for this company as they also do their payroll. By placing separate exposure limits in place for the WEB transactions, State Bank is helping reduce what type of risk?

According to Appendix 4 in the ACH Rule Book, the company name must be included on the consumer statement. In what record is the "originator/company name" found in an ACH transaction?

Which of the following is true relating to an IAT(International ACH Transaction) entry.

Which of the following is a true statement relating to the Monetary Control Act in 1980?

State Bank and Trust received a credit return entry for $35,000 two weeks after the original transaction was transmitted to the Receiver. State Bank and Trust feels that the RDFI (First Bank) owes them interest and penalties for failing to return the credit entry timely. What is the minimum dollar amount of loss suffered to file a claim for compensation?

Which record in an ACH file is considered the first logical record?