Finastra Assessment Test Finastra Assessment Payments and Messaging 5

Question 1

What is an IBAN (International Bank Account Number) primarily used for?

Accepted Answer

Standardized identification of bank accounts for international transactions

Answer

IBAN is an internationally agreed system of identifying bank accounts across national borders, combining country code, check digits, and basic bank account number.

Question 2

In liquidity management for payments, what is an 'intraday credit' facility?

Accepted Answer

Short-term credit extended by a central bank to cover payment obligations within a business day

Answer

Intraday credit (or daylight overdraft) is temporary credit extended by central banks to financial institutions to smooth payment flows during the business day, repaid before close.

Question 3

What does the term 'nostro account' refer to in correspondent banking?

Accepted Answer

An account held by a domestic bank at a foreign bank in the foreign currency

Answer

A nostro account (from Latin 'ours') is an account a bank maintains at a foreign bank, denominated in the foreign currency, used to facilitate international payments.

Question 4

In the context of SWIFT ISO 20022 migration, what is the 'coexistence period'?

Accepted Answer

A transition phase where both MT and MX messages are simultaneously supported on the network

Answer

The coexistence period (November 2022–November 2025) allows MT and ISO 20022 MX messages to be used simultaneously, giving institutions time to migrate at their own pace.

Question 5

Which payment concept describes settling each transaction individually and immediately as it occurs, rather than batching?

Accepted Answer

Real-Time Gross Settlement (RTGS)

Answer

RTGS (Real-Time Gross Settlement) systems process and settle each payment transaction on a gross basis in real time, eliminating settlement risk from batch processing.

Finastra Assessment Test Practice Test

Finastra Assessment Test Practice Test

Finastra Assessment Test Finastra Assessment Payments and Messaging 5