Preview Questions FinTech Specialist | Role Specific Skill

Question 1: Which of the following is a key characteristic of "tokenization" in blockchain within BFSI?

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It enables the use of fiat currencies in blockchain

It restricts access to financial data

It creates digital tokens that represent assets or values

It stores data in private databases for security

Question 2: What is the primary benefit of using homomorphic encryption in financial services?

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It eliminates the need for multi-factor authentication

It reduces the computational load for encryption

It enhances user privacy by preventing data exposure

It allows encryption of data without needing decryption

Question 3: What does a ?51% attack? refer to in the context of blockchain?

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An attack on the consensus mechanism that allows a malicious actor to gain majority control of the network

An attack to overload the blockchain with transactions

An attack to steal tokens from the blockchain wallet

An attack on the blockchain ledger to change transaction history

Question 4: For implementing cross-chain interoperability between different DLT platforms in a banking ecosystem, which solution allows secure atomic swaps of digital assets without a centralized intermediary?

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A centralized exchange bridging both chains with custodial control

Simple cross-chain messaging protocols without cryptographic guarantees

Relying on block explorers and manual verification of transactions

Hashed Time-Locked Contracts (HTLCs) enabling trust-minimized atomic swaps across chains

Question 5: Which regulatory body is primarily responsible for ensuring that financial institutions in the United States comply with Anti-Money Laundering (AML) regulations?

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Securities and Exchange Commission (SEC)

Financial Crimes Enforcement Network (FinCEN)

Federal Reserve

Office of the Comptroller of the Currency (OCC)

Question 6: What is the significance of the "block" in a blockchain?

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It holds a list of validated transactions that are time-stamped and cryptographically linked

It provides a communication channel for blockchain users

It allows for the transfer of assets from one party to another

It stores only the user's personal data and transaction details