Free APRP Payment Systems Questions and Answers
Which of the following best describes a Real-Time Gross Settlement (RTGS) system?
Correct!
Wrong!
RTGS systems settle transactions individually in real-time, ensuring immediate finality of payments.
What is the primary function of the Federal Reserve's Fed wire system?
Correct!
Wrong!
The Fedwire system is designed for the real-time transfer of large-value, time-critical payments between banks.
Which payment system is most commonly used for recurring payments such as payroll and utility bills?
Correct!
Wrong!
The ACH network is commonly used for recurring payments such as payroll and utility bills due to its batch processing and cost-effectiveness.
Which of the following is a key characteristics of the Automated Clearing House (ACH) network?
Correct!
Wrong!
The ACH network processes transactions in batches, typically at the end of the business day, rather than in real-time.
Which of the following is a primary risk associated with card-not-present (CNP) transactions?
Correct!
Wrong!
CNP transactions, where the cardholder is not physically present, are particularly susceptible to data breaches and unauthorized transactions, as the card details can be compromised online.