FIA Financial Technology & Systems 3

Question 1

Which financial technology standard provides a common language for reporting financial data to regulators using XML-based tagging?

Accepted Answer

XBRL

Answer

FIX Protocol

Answer

ISO 8583

Answer

ANSI X12

Question 2

In payment processing, what does the term 'interchange fee' refer to?

Accepted Answer

The fee an issuing bank charges the acquiring bank per card transaction

Answer

The fee charged by a clearinghouse to settle payments

Answer

The annual fee charged to cardholders by card networks

Answer

The fee for converting currencies in cross-border payments

Question 3

What is the role of a 'payment gateway' in e-commerce transactions?

Accepted Answer

It authorizes and captures payment data between merchant and processor

Answer

It physically transports currency between banks

Answer

It sets the exchange rate for international payments

Answer

It provides fraud insurance to merchants

Question 4

Which regulatory framework requires financial institutions to give third-party providers access to customer account data via APIs?

Accepted Answer

PSD2 (Payment Services Directive 2)

Answer

Basel III

Answer

Dodd-Frank Act

Answer

MiFID II

Question 5

In blockchain technology applied to finance, what is a 'smart contract'?

Accepted Answer

Self-executing code that automatically enforces contract terms on a blockchain

Answer

A legal agreement reviewed by AI for compliance

Answer

An encrypted PDF of financial agreements

Answer

A credit agreement with variable interest rates

Question 6

What distinguishes a 'permissioned' blockchain from a 'permissionless' one in financial applications?

Accepted Answer

Permissioned blockchains restrict participation to approved parties

Answer

Permissioned blockchains use stronger encryption

Answer

Permissioned blockchains are always faster than permissionless ones

Answer

Permissioned blockchains cannot support smart contracts

Question 7

Which technology enables contactless payments by allowing devices to communicate at very short range?

Accepted Answer

Near Field Communication (NFC)

Answer

Bluetooth Low Energy (BLE)

Answer

Wi-Fi Direct

Answer

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