Banking Digital Banking 3

Question 1

What is 'screen scraping' in the context of fintech and digital banking?

Accepted Answer

Automatically extracting data from a bank's website by logging in as the user

Answer

Screen scraping involves a third-party service using the customer's credentials to log into their bank account and collect data, which is considered risky compared to API-based data sharing.

Question 2

Which federal agency insures deposits at FDIC-member digital banks up to $250,000 per depositor?

Accepted Answer

The FDIC

Answer

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member institutions, including digital banks, up to $250,000 per depositor per ownership category.

Question 3

A bank uses machine learning to flag unusual transactions in real time. This system is most commonly used for:

Accepted Answer

Fraud detection and prevention

Answer

Machine learning fraud detection systems analyze transaction patterns and flag anomalies in real time, helping banks stop fraudulent activity before it causes harm.

Question 4

What is the function of a 'banking aggregator' app such as Mint or Personal Capital?

Accepted Answer

It connects to multiple bank accounts and presents a unified financial dashboard

Answer

Banking aggregators link to multiple financial institutions and consolidate a user's accounts, transactions, and balances into one interface for budgeting and analysis.

Question 5

Which type of cyberattack involves criminals sending fake emails disguised as legitimate bank communications to steal login credentials?

Accepted Answer

Phishing

Answer

Phishing attacks use deceptive emails or messages that appear to come from trusted sources like banks, tricking users into revealing their login credentials.

Banking Practice Test

Banking Practice Test

Banking Digital Banking 3