Banking Digital Banking 2

Question 1

Which regulation primarily governs consumer data privacy for digital banking customers in the United States?

Accepted Answer

GLBA

Answer

The Gramm-Leach-Bliley Act (GLBA) requires U.S. financial institutions to explain how they share and protect customers' private information.

Question 2

A customer tries to log into their mobile banking app but receives a one-time passcode via SMS. This security method is called:

Accepted Answer

Two-factor authentication (2FA)

Answer

Two-factor authentication combines something you know (password) with something you have (SMS code), adding a second layer of security.

Question 3

What is the primary purpose of a bank's API (Application Programming Interface) in open banking?

Accepted Answer

To allow third-party apps to securely access bank data with customer consent

Answer

Open banking APIs enable authorized third-party developers to build applications and services that access bank account data with the customer's permission.

Question 4

Which of the following best describes a 'digital wallet'?

Accepted Answer

A software application that stores payment credentials for electronic transactions

Answer

A digital wallet is a software-based system that securely stores payment information, allowing users to make electronic transactions via smartphones or computers.

Question 5

What does 'KYC' stand for in the context of digital banking onboarding?

Accepted Answer

Know Your Customer

Answer

Know Your Customer (KYC) is a regulatory process requiring banks to verify the identity of clients to prevent fraud, money laundering, and terrorist financing.

Banking Practice Test

Banking Practice Test

Banking Digital Banking 2