Money Transfer Quiz: Intermediate Level
This money transfer quiz is the middle step of the series. It assumes you know what a sender, a corridor and a payout are, and asks how a money transfer operator earns, funds and controls its transfers.
Pick an answer for each question. A correct answer shows why it is right; a wrong one is marked incorrect and you can try again. Your score counts first attempts only.
On a Scale of 1 to 10, How Well Versed Are You About the Money Transfer Industry?
00 / 10 answeredScore 0
Question 1. In a U.S. money transmission context, what is one common reason a company may need money transmitter licensing?
Question 2. What does "prefunding" usually mean in a remittance payout relationship?
Question 3. What is "float" in the money transfer business?
Question 4. What is the main purpose of an authorized delegate or agent model in money transmission?
Question 5. What is the difference between a transfer fee and an FX spread?
Question 6. What is a key reason sanctions screening is performed in remittance transactions?
Question 7. What is a common difference between payout and settlement?
Question 8. What is the purpose of a consumer disclosure in many remittance transactions?
Question 9. In a remittance business, what does reconciliation usually involve?
Question 10. Why can a money transfer business be profitable even when it advertises a low transfer fee?
What the money transfer quiz covers
When money transmitter licensing applies, and how the authorized delegate model works
Prefunding, float and reconciliation behind a payout relationship
Transfer fees versus the FX spread, and how a "low fee" provider still makes money
Sanctions screening and consumer disclosures
The difference between payout and settlement
How to read your score
Your score is the number of questions you answered correctly on the first try, out of 10.
9 or 10: You know this material well. Try a harder quiz in the series, or the FX arithmetic one.
6 to 8: A solid working knowledge with a gap or two. Re-read the explanations for the questions you missed.
3 to 5: The basics are there. The explanations are written to fill exactly these gaps, so take the quiz again tomorrow.
0 to 2: Start with the entry-level quiz and the glossary, then come back to this one.
For the primary source behind several of these questions, see CFPB: Regulation E remittance transfer rule (12 CFR 1005.30).
More quizzes and further reading
Ten more quizzes in the series, from entry level to FX arithmetic:
Further reading on this site: