Question 1

JPMorgan Chase recently a Contract Intelligence platform in order to

Accepted Answer

A) Help with over customer service. 
B) Review legal documents and extract needed data. 
C) Flag customers that are at risk of default. 
D) Automate the stock trades. 
E) Issue credit cards online. 
A) Help with over customer service. 
B) Review legal documents and extract needed data. 
C) Flag customers that are at risk of default. 
D) Automate the stock trades. 
E) Issue credit cards online.

Question 2

Thin-file customers are considered which of the following:

Accepted Answer

A) Customers with low amounts of retirement funds. 
B) Customers with low credit scores. 
C) Customers who develop a credit history at a slow pace. 
D) Customers with no emergency fund. 
E) Customers at risk of defaulting on loans. 
A) Customers with low amounts of retirement funds. 
B) Customers with low credit scores. 
C) Customers who develop a credit history at a slow pace. 
D) Customers with no emergency fund. 
E) Customers at risk of defaulting on loans.

Question 3

Blockchain organizes data into blocks, chained together in an append-only data structure.

Accepted Answer

A) True 
 B)False

Question 4

In what ways has Fintech changed the way payments are captured from a peer-to-peer standpoint?

Accepted Answer

A) Businesses ability to collect from customers. 
B) Software to store credit and debit card information. 
C) The utilization of software on phones to share money. 
D) High speed sharing of funds. 
E) All of the options are true. 
A) Businesses ability to collect from customers. 
B) Software to store credit and debit card information. 
C) The utilization of software on phones to share money. 
D) High speed sharing of funds. 
E) All of the options are true.

Question 5

The largest threat to cryptocurrency investments stem from the danger of the investor losing an entire investment from hackers or the exchange holding the assets going out of business.

Accepted Answer

A) True 
 B)False

Question 6

Machine learning is another name for artificial intelligence and focuses on incorporating robots to replace human labor.

Accepted Answer

A) True 
 B)False

Question 7

Potential gains through the use of distributed ledger technology include simplifying settlement and reconciliation processes for the actors participating in payment, clearing, a settlement arrangements.

Accepted Answer

A) True 
 B)False

Question 8

Ethereum is a crypto-asset network that enables the building of smart contracts to allow for conditions to be set on what happens and when events take place.

Accepted Answer

A) True 
 B)False

Question 9

Fintech is changing business-to-business payments by making them:

Accepted Answer

A) more expensive but accurate 
B) faster and cheaper 
C) complicated but reliable 
D) prevent hackers from obtaining data 
E) all of the options are true 
A) more expensive but accurate 
B) faster and cheaper 
C) complicated but reliable 
D) prevent hackers from obtaining data 
E) all of the options are true

Question 10

According to McKinsey Panorama, almost 80% of financial institutions have entered into fintech partnerships, however there is a high level of regional variation in fintech partnerships.

Accepted Answer

A) True 
 B)False

Question 11

Individuals looking to invest in crypto are able to purchase niche altcoins directly through a digital exchange platform without engaging in a fiat exchange.

Accepted Answer

A) True 
 B)False

Question 12

In 2016, the European Union adopted _____ to replace the 1995 Data Protection Directive.

Accepted Answer

A) Auriemma Consulting Group 
B) Specialized Banking Licenses (SPBs) 
C) Conference of State Bank Supervisors (CSBS) 
D) Payment Services Directive 2 (PSD2) 
E) General Data Protection Regulation (GDPR) 
A) Auriemma Consulting Group 
B) Specialized Banking Licenses (SPBs) 
C) Conference of State Bank Supervisors (CSBS) 
D) Payment Services Directive 2 (PSD2) 
E) General Data Protection Regulation (GDPR)

Question 13

The payments landscape have been transformed by fintech technology that includes card network, merchant acquirers, POS players, digital payment platforms, and person-to-person companies but haven't yet experienced major changes in bill payment and money transfers.

Accepted Answer

A) True 
 B)False

Question 14

Distributed ledgers are unique in that records are not communicated to other nodes via a central authority, but instead are constructed and held by every node in the network.

Accepted Answer

A) True 
 B)False

Question 15

Retail banks still currently hold a huge advantage: customers, compliance, and capital.

Accepted Answer

A) True 
 B)False

Question 16

Banks have completed global trade transactions between other banks using blockchain, smart contracts, and the IoT using open account transactions on a private distributed ledger.

Accepted Answer

A) True 
 B)False

Question 17

What is the bid-ask spread referred to?

Accepted Answer

A) The difference bond asking and bidding prices. 
B) The stock markets valuation of stock. 
C) The difference between the stock's bid and asking price. 
D) The reduction of the stock's active price. 
E) None of the options. 
A) The difference bond asking and bidding prices. 
B) The stock markets valuation of stock. 
C) The difference between the stock's bid and asking price. 
D) The reduction of the stock's active price. 
E) None of the options.

Question 18

Distributed ledger technology may pose new risks such as potential uncertainty about operational and security issues arising from the technology.

Accepted Answer

A) True 
 B)False

Question 19

Distributed ledger technology (DLT) is designed to:

Accepted Answer

A) Document and confirm U.S.generated financial transactions. 
B) Document and confirm financial foreign transactions. 
C) Purchase and sell foreign currencies. 
D) Triggers currencies to be exchanged under certain economies. 
E) Purchase and sell foreign stock. 
A) Document and confirm U.S.generated financial transactions. 
B) Document and confirm financial foreign transactions. 
C) Purchase and sell foreign currencies. 
D) Triggers currencies to be exchanged under certain economies. 
E) Purchase and sell foreign stock.

Question 20

Opponents to distributed ledger technology cite increased complexity, reduction in end-to-end processing speed, and lack of efficiency in record-keeping infrastructures.

Accepted Answer

A) True 
 B)False

Exam 18: Fintech Risks

JPMorgan Chase recently a Contract Intelligence platform in order to

Thin-file customers are considered which of the following:

Blockchain organizes data into blocks, chained together in an append-only data structure.

In what ways has Fintech changed the way payments are captured from a peer-to-peer standpoint?

The largest threat to cryptocurrency investments stem from the danger of the investor losing an entire investment from hackers or the exchange holding the assets going out of business.

Machine learning is another name for artificial intelligence and focuses on incorporating robots to replace human labor.

Potential gains through the use of distributed ledger technology include simplifying settlement and reconciliation processes for the actors participating in payment, clearing, a settlement arrangements.

Ethereum is a crypto-asset network that enables the building of smart contracts to allow for conditions to be set on what happens and when events take place.

Fintech is changing business-to-business payments by making them:

According to McKinsey Panorama, almost 80% of financial institutions have entered into fintech partnerships, however there is a high level of regional variation in fintech partnerships.

Individuals looking to invest in crypto are able to purchase niche altcoins directly through a digital exchange platform without engaging in a fiat exchange.

In 2016, the European Union adopted _____ to replace the 1995 Data Protection Directive.

The payments landscape have been transformed by fintech technology that includes card network, merchant acquirers, POS players, digital payment platforms, and person-to-person companies but haven't yet experienced major changes in bill payment and money transfers.

Distributed ledgers are unique in that records are not communicated to other nodes via a central authority, but instead are constructed and held by every node in the network.

Retail banks still currently hold a huge advantage: customers, compliance, and capital.

Banks have completed global trade transactions between other banks using blockchain, smart contracts, and the IoT using open account transactions on a private distributed ledger.

What is the bid-ask spread referred to?

Distributed ledger technology may pose new risks such as potential uncertainty about operational and security issues arising from the technology.

Distributed ledger technology (DLT) is designed to:

Opponents to distributed ledger technology cite increased complexity, reduction in end-to-end processing speed, and lack of efficiency in record-keeping infrastructures.

Why Are Financial Institutions Special

Financial Services: Depository Institutions

Financial Services: Finance Companies

Financial Services: Securities Brokerage and Investment Banking

Financial Services: Mutual Funds and Hedge Funds

Financial Services: Insurance

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loan Risk

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Deposit Insurance and Other Liability Guarantees

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization

Filters