Other APRP Stuff

Question 1

Fedwire Funds are final and irrevocable upon completion of processing by the __________.

Answer 1

Federal Reserve Banks

Question 2

Real-time Payments® (RTP) allows a financial institution to limit its exposure risk by:
a. Ensuring equipment is safeguarded
b. Utilizing prefunding
c. Utilizing a micro-payment prior to initiating live payment
d. Protection via Daylight-Overdraft

Answer 2

b. Utilizing prefunding

Question 3

Which regulation requires that a paying bank must return a check such that it is received by the Bank of First Deposit by 2:00 p.m. local time on the second business day following the date of presentment?

Answer 3

Reg CC expeditious return

Question 4

Under the Uniform Commercial Code, a Bank of First Deposit is liable for a warranty breach claim for forged/missing indorsement for up to:

Answer 4

3 years from the cash letter date

Question 5

The exchange of check and check images between financial institutions is governed by:
a. Regulation CC
b. Uniform Commercial Code Articles 3 & 4
c. 31 CFR 220
d. Agreement

Answer 5

d. Agreement

Question 6

Credit Card transactions are governed by:

Answer 6

Regulation Z

Question 7

An institution’s board of directors may establish _________ to oversee audit functions and to report on audit matters periodically to the full board of directors.

Answer 7

an audit committee

Question 8

___________ is a process designed to provide assurance regarding the achievement of objectives relating to operations, reporting and compliance.
a. Internal controls
b. Risk assessment
c. Layered security
d. Multi-factor authentication

Answer 8

a. Internal controls

Question 9

An audit of retail payment systems should include internal controls, management policies, and:
a. reconciliation
b. clearing and settlement
c. procedures
d. risk assessment

Answer 9

c. procedures

Question 10

A transaction that posts to an account in real time may affect the balance available in the account immediately, however the posting may be temporary until the institution has completed all of the verification, balancing and reconciliation activities for:
a. Pending transactions
b. Provisional credit
c. Pre-approval
d. Memo posting

Answer 10

d. Memo posting

Question 11

What entity orchestrates movement of payments and value-added messages to and from participants in a real time environment?

Answer 11

The Clearing House

Question 12

The process of ensuring the funds represented by the check are debited from and credited to accounts is called:

Answer 12

Check Collection

Question 13

For a Remotely Created Check, which party warrants the maker’s signature is authorized?

Answer 13

The Bank of First Deposit

Question 14

Who, What, Where, When and Why are all questions that should be addressed in the ________________.
a. Audit Policy
b. KYC
c. CIP
d. Written Procedures

Answer 14

d. Written Procedures

Question 15

Business continuity planning is an important part of managing which type of risk?

Answer 15

Operational Risk

Question 16

Card Transactions authenticated with a signature rather than a PIN are called:
a. Single Message transactions
b. POS Transactions
c. Offline Transactions
d. Dual Message transactions

Answer 16

d. Dual Message transactions

Question 17

Open Loop Payment System

Answer 17

a general-purpose charge card that can be used anywhere that brand of card is accepted.

Question 18

Closed Loop Payment System

Answer 18

can only be used to make purchases from a single company or retailer, like a department store.

Question 19

Internally developed technology _______________ establish measurable controls and requirements to achieve policy objectives.
a. procedures
b. system maintenance schedules
c. standards
d. authentication requirements

Answer 19

c. standards

Question 20

A risk assessment includes an:
a. Analysis of the nature of the threat
b. Implementation of appropriate controls to reduce the potential for risk
c. Inventory of systems and information necessary to operations
d. Analysis of threats based on the impact to the institution and its customers

Answer 20

d. Analysis of threats based on the impact to the institution and its customers

Question 21

What alternative payment consists of money transfer without money movement and utilizes a network of connections to conduct the transaction?

Answer 21

Hawala

Question 22

A network that provides payment services directly to merchants and cardholders by the owner of the network without involving a third party as an intermediary is:

Answer 22

Closed Loop Payment System

Question 23

The PCI Security Standards Council defines cardholder data as full Primary Account Number or full PAN with any of the following:
a. Cardholder Name, Expiration Date and CVC
b. Cardholder Name, Expiration date
c. Cardholder Name and Service Code
d. Cardholder Name, Expiration Date and Service Code

Answer 23

a. Cardholder Name, Expiration Date and CVC

Question 24

According to COSO, Enterprise Risk Management is:
a. The responsibility of a designated department within the organization
b. A function within the organization
c. The culture, capabilities, and practices that organizations integrate within their strategy to manage risk and preserve and realize value
d. Managing a listing of various risks that impact an organization

Answer 24

c. The culture, capabilities, and practices that organizations integrate within their strategy to manage risk and preserve and realize value

Question 25

According to COSO, ______________ is the amount of risk, on a broad level, an entity is willing to accept in pursuit of value.
a. Risk culture
b. Risk tolerance
c. Risk insurance
d. Risk appetite

Answer 25

d. Risk appetite

Question 26

Which of the following steps is included in a Business Impact Analysis?
a. Identifying potential impact of business disruptions
b. Prioritizing potential business disruptions
c. Implementing mitigation strategies
d. Revising business continuity plan

Answer 26

a. Identifying potential impact of business disruptions

Question 27

According to the FFIEC, financial institutions engaged in retail payment systems should establish an appropriate process that:
a. requires dual control for processing and settlement
b. implements multi-factor authentication for internet banking
c. requires a periodic risk assessment review
d. identifies, measures, monitors, and limits risks

Answer 27

d. identifies, measures, monitors, and limits risks

Question 28

An individual or company that has authorized an Originator to initiate an ACH entry to their account with the RDFI.
a. Sender
b. Pulser
c. Receiver
d. Transmitter

Answer 28

c. Receiver

Question 29

Process of verifying the identity of an individual user, machine, software component or any other entity.
a. Encryption
b. Identification
c. Authentication
d. Authorization

Answer 29

c. Authentication

Question 30

Testing method used to apply a specific event scenario to the business continuity plan (BCP).
a. Business Continuity Test/disaster Recovery Exercise
b. Tabletop Exercise/structured Walk-through Test
c. Functional Drill/parallel Test
d. Walk-Through Drill/Simulation Test

Answer 30

d. Walk-Through Drill/Simulation Test