Preview Questions FinTech Specialist | Role Specific Skill

Question 1: In a mobile payment system, what role does a "token" play in securing transactions?

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It increases the speed of mobile transactions

It stores the user's account balance securely

It allows users to track their payment history

It replaces sensitive card details with a randomly generated identifier during the transaction

Question 2: In a distributed ledger-based remittance system, what data security measure ensures that sensitive transaction details can be validated by the network participants without fully disclosing underlying confidential customer data?

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Using zero-knowledge proofs or confidential transactions to allow validation of correctness without revealing full data

Storing all raw data on-chain in plaintext

Only using hashing without any cryptographic proof

AES encrypting data and sharing keys with all participants

Question 3: What does the term "KYC" stand for in the context of financial services?

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Know Your Compliance

Know Your Counterparty

Know Your Creditworthiness

Know Your Customer

Question 4: Which of the following regulations focuses on the governance and oversight of insurance companies?

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Solvency II

Dodd-Frank Act

MiFID II

The Securities Act of 1933

Question 5: In designing a permissioned blockchain network for cross-border payments between multiple financial institutions, which consensus mechanism provides fault tolerance, finality, and high-throughput suitable for regulated BFSI environments?

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Proof of Work (PoW) requiring significant computational resources

Proof of Stake (PoS) relying on token-based validation

Practical Byzantine Fault Tolerance (PBFT) enabling a predefined set of validators to achieve consensus rapidly

Federated Byzantine Agreement (FBA) similar to Stellar, requiring trust in selected nodes

Question 6: Which of the following is an essential aspect when implementing a mobile banking app in a highly regulated environment?

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User-friendly interface

Integration with AI chatbots

High-speed transaction processing

End-to-end encryption