Finastra Assessment Test Finastra Assessment Open Finance and APIs 2 — Questions and Answers
Question 1: In Open Finance, what is the primary purpose of an API gateway?
- To store customer financial data permanently
- To act as a single entry point managing routing, security, and rate limiting for APIs (Correct answer)
- To replace the core banking system entirely
- To generate regulatory reports automatically
Correct answer: To act as a single entry point managing routing, security, and rate limiting for APIs
An API gateway serves as the centralized entry point that handles routing, authentication, rate limiting, and monitoring for all API traffic.
Question 2: Which HTTP status code indicates that an API request was successful and a new resource was created?
- 200 OK
- 204 No Content
- 201 Created (Correct answer)
- 202 Accepted
Correct answer: 201 Created
HTTP 201 Created is the standard response when a POST request successfully creates a new resource.
Question 3: What does 'idempotency' mean in the context of financial APIs?
- An API that runs faster with repeated calls
- Repeating the same request multiple times produces the same result without side effects (Correct answer)
- An encryption standard for payment data
- A method for batching multiple transactions
Correct answer: Repeating the same request multiple times produces the same result without side effects
Idempotency ensures that duplicate API calls (e.g., due to retries) do not cause unintended duplicate transactions or state changes.
Question 4: In Finastra's FusionFabric.cloud platform, what role do 'microapps' play?
- They replace the entire Finastra product suite
- They are standalone mobile apps for retail banking customers
- They are lightweight, composable applications built on open APIs that extend Finastra products (Correct answer)
- They are database schemas for financial data storage
Correct answer: They are lightweight, composable applications built on open APIs that extend Finastra products
Microapps on FusionFabric.cloud are small, focused applications that leverage Finastra's open APIs to add specific functionality to financial products.
Question 5: What is the key difference between REST and GraphQL APIs in financial services?
- REST supports only XML; GraphQL supports only JSON
- GraphQL allows clients to request exactly the data fields they need, reducing over-fetching (Correct answer)
- REST APIs cannot be secured with OAuth 2.0
- GraphQL requires a dedicated hardware appliance
Correct answer: GraphQL allows clients to request exactly the data fields they need, reducing over-fetching
GraphQL lets clients specify the exact fields required in a query, minimizing data transfer and avoiding the over-fetching common with fixed REST endpoints.
Question 6: Under PSD2, what is the 'fallback mechanism' that banks must provide?
- A paper-based alternative to digital payments
- An alternative access channel TPPs can use if a dedicated API interface fails (Correct answer)
- A secondary firewall for API security
- A manual override for fraud detection
Correct answer: An alternative access channel TPPs can use if a dedicated API interface fails
PSD2 requires that if a bank's dedicated API interface is unavailable, TPPs must have a fallback (such as a modified customer interface) to ensure continued access.
Question 7: Which Open Banking standard is primarily used in the United States for financial data sharing?
- UK Open Banking Standard
- Berlin Group NextGenPSD2
- Financial Data Exchange (FDX) (Correct answer)
- ISO 20022
Correct answer: Financial Data Exchange (FDX)
The Financial Data Exchange (FDX) API standard is the leading voluntary framework for secure consumer-permissioned financial data sharing in the US.
Finastra Assessment Test Finastra Assessment Open Finance and APIs 2
In Open Finance, what is the primary purpose of an API gateway?