Preview Questions FinTech Specialist | Role Specific Skill

Question 1: How does the implementation of blockchain technology impact KYC (Know Your Customer) processes in BFSI?

Which action should you take?

Choose only one option

It eliminates the need for any identity verification

It reduces the need for banks to follow regulations

It provides a decentralized and secure method for storing and sharing customer data

It accelerates the customer onboarding process without any data security risks

Question 2: In building a blockchain-based collateral management system for lending, which data structure and protocol can dynamically update asset valuations, handle margin calls, and enforce liquidation triggers without manual intervention?

Which action should you take?

Choose only one option

A static smart contract with hardcoded asset prices

Off-chain spreadsheets updated periodically and then batch-uploaded to the chain

A protocol integrating real-time price oracles, automated margin checks (e.g., via MakerDAO-like mechanisms), and on-chain liquidation logic

Oracles feeding only daily closing prices without real-time updates

Question 3: Which financial regulation introduced the "Volcker Rule" to limit speculative trading by banks in the U.S.?

Which action should you take?

Choose only one option

Dodd-Frank Act

MiFID II

Sarbanes-Oxley Act

Basel III

Question 4: What does the term ?smart contracts? refer to in the context of fintech implementation?

Which action should you take?

Choose only one option

Manual agreements converted digitally

AI-driven legal agreements

Self-executing blockchain code

Digital agreements stored on servers

Question 5: What is the primary objective of data tokenization in financial technology?

Which action should you take?

Choose only one option

To speed up transaction processing

To reduce the risk of sensitive data exposure during processing

To enable multiple users to access the same data securely

To increase the amount of data stored without compromising performance

Question 6: How does PSD2 (Payment Services Directive 2) impact digital payments in the EU?

Which action should you take?

Choose only one option

It mandates the use of biometrics for all transactions

It enforces centralized control over all payment systems

It enables open banking, enhancing competition and innovation in digital payment services

It limits the amount of daily transactions to enhance security