Practice Test Questions of Focus Flashcards
1
Q
- When an Originator is initiating an MTE, POS or SHR entry where a personal identification number (PIN) is required in connection with the authorization, the Originator MUST comply with
A
ANSI ASC X9.8 Standards
2
Q
- Which of the following relates to the EFT Mandate?
☐a. The Expedited Funds Availability Act of 1988
☐b. Accredited Standards Committee (ASC)
☐c. The Debt Collection Improvement Act of 1996
☐d. The Office of Foreign Assets Control
A
C
3
Q
- When a participant in the ACH network is unable to meet its financial obligation to another financial institution it is an example of what type of ACH risk?
A
Systemic Risk
4
Q
- The definition of “Designated Data” in the NACHA Operating Rules includes the following data, processed by an ACH Operator, to the extent such ACH Operator agrees to provide such data to NACHA from time to time:
A
Data derived from Return Entries or Extended Return Entries
5
Q
- The ACH Network is governed by all of the following except:
☐a. Regulation D
☐b. UCC 4A
☐c. Electronic Funds Transfer Act
☐d. Regulation J
A
D
6
Q
- FedWire is subject to:
☐a. UCC 3 and UCC 4
☐b. Regulation J and Regulation CC
☐c. Regulation D and NACHA Operating Rules
☐d. UCC4A and Regulation Z
A
B
7
Q
- Which ACH Participant provides a warranty that each ACH entry is authorized in accordance with the NACHA Operating Rules?
A
ODFI
8
Q
- 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 are no electronic funds transfers to the account is required according to:
A
Reg E
9
Q
- File creation time and date are found in the:
A
File Header Record
10
Q
- Regulation E defines specific requirements for all of the following except:
☐a. Timing requirements for disclosures
☐b. Corporate electronic funds transfers
☐c. Electronic checks
☐d. Dispute resolution
A
B (Reg E is for consumer transactions ONLY)
11
Q
- The purpose of the Federal Reserve Bank Operating Circular 4 (OC4) is to:
A
Govern the clearing and settlement of ACH entries
12
Q
- Great State Bank (ODFI) receives a notice from NACHA regarding Reporting Requirements for unauthorized returns for one or more Originators or Third-Party
Senders that NACHA suspects exceeded the threshold of one half of one percent (0.5%). Great State Bank
must do what (from the choices below)
☐a. reduce the rate below 0.5% within 10 banking days and maintain it below that 0.5% for an additional 180 days
☐b. respond within 15 banking days via a traceable delivery method asking NACHA for more information as to why the Originator or TPS appears to have exceeded the Unauthorized Entry Return Rate Threshold
☐c. respond within 10 banking days via a traceable delivery method providing the Originator’s or TPS’s
origination volume for the past year
☐d. respond within 10 banking days via a traceable delivery method explaining the reason(s) causing the
Originator or TPS to have exceeded the Unauthorized Entry Return Rate Threshold.
A
D
13
Q
- Which of the following specifically addresses national banks and their need to evaluate large dollar payment system network risks and requires reporting this to top management and maintaining agreements with all parties that they do business with?
A
OCC Banking Circular 235
14
Q
- ABC Company has 35 employees whom they pay using Direct Deposit via ACH through their ODFI, 1st National Bank. 1st National Bank and ABC Company have an agreement in place (ODFI-Originator Agreement) where ABC Co agrees to be bound by the NACHA
Operating Rules. According to the NACHA Operating Rules, the employees’ pay, which are consumer credit transactions, can be authorized in all of the following ways EXCEPT:
☐a. written and signed or similarly authenticated
☐b. either oral or written and signed or similarly authenticated
☐c. no authorization required for payroll deposits
☐d. orally or by other non-written means
A
C
15
Q
- Written and signed or similarly authenticated authorizations are REQUIRED for which of the following debit transactions:
☐a.ARC, POP, XCK
☐b. XCK, BOC, WEB
☐c. WEB, POP, PPD
☐d. CCD, RCK, PPD
A
C
16
Q
- U.S. Steel Company is stating it has an unauthorized debit Entry posting to its corporate account on Sept 22. On Sept 29, it is requesting the RDFI (Star Bank) to return the Entry as unauthorized. What is the timeframe to return an unauthorized ACH corporate Entry?
☐a. Transmit within 2 Banking Days
☐b. Available to the ODFI no later than opening of business on the second Banking Day following
Settlement Date of original Entry
☐c. Available to the ODFI by opening of business on the Banking Day following the 60th calendar
day following Settlement D ate of original Entry
☐d. Transmit within 5 Banking Days
A
B
17
Q
- Which of the following is NOT a Service Class Code
☐a. 200
☐b. 220
☐c. 225
☐d. 230
A
D
200 - Mixed credits & Debits
220 - Credits Only
225 - Debits Only
18
Q
- Which of the following fields contains the reason for payment as required by OFAC for IAT Entries?
☐a. company entry description field
☐b. transaction type code field
☐c. secondary SEC Code field
☐d. IAT Indicator field
A
B
19
Q
- Upon request of a Receiver, an RDFI must provide all payment-related information for CCD, CIE, CTX, and IAT entries to non-consumer accounts by:
☐a. The opening of business on the second Banking Day after the request from the Receiver.
☐b. The opening of business on the second banking day following the Settlement Date of the Entry.
☐c. The second Banking Day following the receipt of the ACH Entry.
☐d. The opening of business of the Settlement Date of the Entry that contains payment-related
information.
A
B
20
Q
- All Return Entries must:
☐a. contain the exact field data as the original entry.
☐b. be made available to the ODFI by opening of business on the 2nd banking day following the settlement date of the original entry.
☐c. contain the reason for the return in the addenda information field of the addenda record.
☐d. be in the amount of the related original entry.
A
D