Overview of Automatic Clearing House (ACH) Transactions

Quiz Summary

0 of 10 Questions completed

Questions:

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 10 Questions answered correctly

Your time:

You have reached 0 of 0 point(s), (0)

Current
Review
Answered
Correct
Incorrect

Question 1 of 10

1. Question
1. What does ACH stand for?
- a) Automated Clearing House
- b) Account Credit Hub
- c) Advanced Cash Handling
- d) American Centralized Hub
Question 2 of 10

2. Question
2. What are ACH debits and credits?
- a) Types of electronic fund transfers only applicable to businesses only.
- b) A Types of financial institution.
- c) Types of transaction that uses Cash.
- d) Types of transactions involving money 'pushed' or 'pulled' from an account electronically.
Question 3 of 10

3. Question
3. What is the primary purpose of a direct deposit transaction?
- a) To physically transfer cash between individuals.
- b) To facilitate the transfer of funds from a business to a government entity.
- c) To automate the movement of money from a business or government entity to a consumer's account.
- d) To eliminate the need for a bank account in financial transactions
Question 4 of 10

4. Question
4. What is the main advantage of using direct deposit for financial transactions?
- a) It requires a physical visit to a bank for fund transfer.
- b) It involves the issuance of paper checks for transactions.
- c) It streamlines the transfer of funds and eliminates the need for paper checks.
- d) It is a manual process with high transaction fees.
Question 5 of 10

5. Question
5. What is the key distinction between ACH Credit and ACH Debit transactions?
- a) ACH Credit transactions involve fund withdrawal from an account, while ACH Debit transactions involve fund deposit.
- b) ACH Credit transactions are initiated by third parties, while ACH Debit transactions are initiated by account holders.
- c) ACH Credit transactions are used for recurring payments, while ACH Debit transactions are used for one-time payments.
- d) ACH Credit transactions involve money being 'pushed' into an account, while ACH Debit transactions involve money being 'pulled' from an account.
Question 6 of 10

6. Question
6. What is the primary source of financial support for NACHA, the organization overseeing the ACH network?
- a) Government grants and funding
- b) Donations from individuals
- c) Sales of its proprietary software
- d) Fees from financial institutions using its network
Question 7 of 10

7. Question
7. What is the purpose of the NACHA Guidelines?
- a) To offer a comprehensive exploration of ACH Rules
- b) To outline the duties of the NACHA organization
- c) To provide legal enforcement for ACH transactions
- d) To explain the process of purchasing physical copies of NACHA materials
Question 8 of 10

8. Question
8. Who is responsible for defining the bank’s business strategy and setting risk thresholds for the ACH program?
- a) Bank auditors
- b) Board of directors
- c) Third-party service providers
- d) ACH operators
Question 9 of 10

9. Question
9. Which of the following is NOT included in the components of the comprehensive reports submitted to the board of directors?
- a) Metrics and trend analyses on ACH volume
- b) Customer credit scores and transaction history
- c) Unauthorized returns exceeding board-established thresholds
- d) Financial reports on the profitability of the ACH function
Question 10 of 10

10. Question
10. Why is it challenging to identify unusual activities during the layering and integration stages of money laundering using ACH transactions?
- a) ACH transactions are too slow for money laundering
- b) ACH transactions only involve small amounts of money
- c) ACH transactions can legitimize frequent and recurring transactions
- d) ACH transactions are not commonly used for money laundering?

Quiz for Overview of Automatic Clearing House (ACH) Transactions

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

About Us

Find a Tool Overview

Our Services

Laws & Regulations

News & Events