CFP Financial Technology & Innovations 2

Question 1

Which consensus mechanism does Ethereum use after 'The Merge' in 2022?

Accepted Answer

Proof of Stake

Answer

Ethereum transitioned from Proof of Work to Proof of Stake in September 2022, reducing energy consumption by ~99.95%.

Question 2

In the context of open banking, what does PSD2 regulate?

Accepted Answer

Third-party access to bank account data via APIs

Answer

PSD2 (Payment Services Directive 2) is a European regulation requiring banks to open their payment infrastructure and customer data to licensed third parties via APIs.

Question 3

What is the primary function of a payment gateway in e-commerce?

Accepted Answer

Securely transmitting transaction data between merchant and bank

Answer

A payment gateway encrypts and securely transmits transaction data from the merchant's website to the acquiring bank and card networks.

Question 4

Which technology underpins most modern robo-advisor platforms for portfolio management?

Accepted Answer

Modern Portfolio Theory combined with algorithmic rebalancing

Answer

Robo-advisors typically apply Modern Portfolio Theory (MPT) with rule-based or ML-enhanced algorithms to construct and automatically rebalance diversified portfolios.

Question 5

What does 'tokenization of assets' mean in fintech?

Accepted Answer

Representing ownership of real-world assets as digital tokens on a blockchain

Answer

Asset tokenization involves creating digital representations of real-world assets (real estate, art, bonds) on a blockchain, enabling fractional ownership and easier transfer.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP Financial Technology & Innovations 2