AAP Handbook Test 120 Multiple Choice

AAP Handbook Test (120 Multiple Choice Questions) Latest Update - Exam from Credible Source with 100 Questions and 100% Verified Correct Answers Guaranteed A+ Approved by Professor A biller collecting a service fee associated with a payment returned as insufficient funds may do so as long as notice has been provided at the time the underlying Entry is authorized or check item is accepted. To identify the debit as a service fee, the biller

must format the Company Entry Description field as follows:

☐a. SERVICE FEE ☐b. COLLECTION FEE ☐c. NSF FEE

☐d. RETURN FEE - CORRECT ANSWER: D

A Health Care EFT Transaction must comply with the following format:

☐a. CCD with no Addenda Record ☐b. CTX with one Addenda Record ☐c. CCD with one Addenda Record

☐d. CTX with multiple Addenda Records - CORRECT ANSWER: C

A local financial institution has 5 employees who work in the ACH Operations area.There is one employee on maternity leave and 2 employees called in sick with the flu.This leaves 2 employees in the ACH Operations to complete the daily tasks for 3 consecutive days. They are unsure of how to do ACH returns so they decide to "save" them until the regular employee comes back from being sick with the flu. Three days later the returns cannot be completed as they were "NSF" and they are now outside of the return timeframe. What type of risk needs to be addressed in this scenario?☐a. Fraud Risk ☐b. Operational Risk 1 / 3

☐c. Systemic Risk

☐d. Fraud Risk - CORRECT ANSWER: B

A TEL entry can be initiated in the following situations except when:

☐a. There is an existing relationship between the originator and consumer ☐b. The originator initiates the call to the consumer with whom they have no prior relationship ☐c. The debit being authorized will occur monthly

☐d. The consumer initiates the call - CORRECT ANSWER: B

A VAN is best described as:

☐a. A private ACH Operator ☐b. A communications network for sending and receiving data ☐c. An ATM/POS network

☐d. A financial EDI transaction set - CORRECT ANSWER: B

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 - CORRECT ANSWER: C

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According to an original authorization between Georgia and her health club, the monthly membership dues are $35.00 each month. The health club must increase their monthly membership dues to $40.00 each month to cover increasing costs due to the economy.Which of the following regulations requires the health club to provide a 10-day notice when there is a change in dollar amount of the original authorization?☐a. Regulation D ☐b. Regulation E ☐c. Uniform Commercial Code Article 4A

☐d. OCC 235 - CORRECT ANSWER: B

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. - CORRECT ANSWER: D

Alphameric fields are ☐a. Left justified and zero filled ☐b. Right justified and zero filled ☐c. Left justified and space filled

☐d. Right justified and space filled - CORRECT ANSWER: C

An ACH Operator acting as a Gateway must not process ☐a. any debit Inbound IAT Entry ☐b. any debit Inbound IAT Entry, except for Reversing Entries ☐c. any credit Outbound IAT Entry ☐d. any credit Inbound IAT Entry - CORRECT ANSWER: B

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