Association for Financial Professionals (AFP) Practice Exam

The communication protocol used for transmitting balance and reporting information from banks to account holders is BTRS (Bank Transaction Reporting Standard). BTRS is specifically designed to facilitate the exchange of transaction-related information, including balances and detailed reporting, between banks and their customers.

This protocol accommodates financial institutions' need for accurate and timely communication of account information, which is essential for effective cash management and financial planning. BTRS standards help ensure that the data exchanged is structured and consistent, allowing for easier integration into clients' financial systems and smoother reconciliation processes.

The other communication protocols mentioned serve different purposes. ISO 20022 is widely used for a variety of financial transactions and messages but is not specifically focused on account balance reporting. ASC X12 and UN/EDIFACT are standards primarily utilized for electronic data interchange in various industries, mainly focused on business transactions rather than specific banking reports. Therefore, BTRS stands out as the most appropriate choice for this specific context.