1. Identify the following steps in the payment process.

2. Which type of check clearing requires sorting transmitting checks as cash letters to the paying bank via a clearinghouse, correspondent bank, direct send, or the central bank (e.g., Fed)?

a) On-us

b) On-we

c) Transit

d) Foreign

3. With a foreign check in a foreign currency, when does the bank of first deposit typically credit the payees account?

a) At the time of image/actual presentment

b) After it receives and converts the proceeds of the check to its base currency

c) At the same time that it debits the payors account

d) Once the review period has expired

4. Which of the following is true of gross versus net settlement systems?

a) Net settlement batch processing systems send the entire amount of each transaction at days end.

b) Gross settlement has a separate value transfer between payor and payee and is usually accompanied by real-time settlement.

c) Electronic credit transactions are not considered final immediately after net settlement.

d) Electronic debits are never reversible.

5. What is the Fed doing when it processes a fixed-to-variable FedGlobal ACH account-to-account transfer?

a) Acting as a near real-time ACH and performing FX conversion

b) Acting as a near real-time ACH and transferring receiving in US dollars

c) Acting as a gateway bank and transferring and receiving in US dollars

d) Acting as a gateway bank and performing FX conversion

6. What must merchants do as part of the PCI DSS?

a) Enumerate interchange fees, assessments, and processor fees

b) Avoid bundled pricing and use interchange-plus pricing

c) Audit systems and applications

d) Account for merchant card fees for returns, charge backs, and disputes