Other APRP Stuff Flashcards
(30 cards)
Fedwire Funds are final and irrevocable upon completion of processing by the __________.
Federal Reserve Banks
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
b. Utilizing prefunding
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?
Reg CC expeditious return
Under the Uniform Commercial Code, a Bank of First Deposit is liable for a warranty breach claim for forged/missing indorsement for up to:
3 years from the cash letter date
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
d. Agreement
Credit Card transactions are governed by:
Regulation Z
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.
an audit committee
___________ 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
a. Internal controls
An audit of retail payment systems should include internal controls, management policies, and:
a. reconciliation
b. clearing and settlement
c. procedures
d. risk assessment
c. procedures
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
d. Memo posting
What entity orchestrates movement of payments and value-added messages to and from participants in a real time environment?
The Clearing House
The process of ensuring the funds represented by the check are debited from and credited to accounts is called:
Check Collection
For a Remotely Created Check, which party warrants the maker’s signature is authorized?
The Bank of First Deposit
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
d. Written Procedures
Business continuity planning is an important part of managing which type of risk?
Operational Risk
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
d. Dual Message transactions
Open Loop Payment System
a general-purpose charge card that can be used anywhere that brand of card is accepted.
Closed Loop Payment System
can only be used to make purchases from a single company or retailer, like a department store.
Internally developed technology _______________ establish measurable controls and requirements to achieve policy objectives.
a. procedures
b. system maintenance schedules
c. standards
d. authentication requirements
c. standards
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
d. Analysis of threats based on the impact to the institution and its customers
What alternative payment consists of money transfer without money movement and utilizes a network of connections to conduct the transaction?
Hawala
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:
Closed Loop Payment System
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
a. Cardholder Name, Expiration Date and CVC
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
c. The culture, capabilities, and practices that organizations integrate within their strategy to manage risk and preserve and realize value
