FinTech quiz 1 || All Answers Are Correct 100%.
The Financial Stability Board defines fintech as "technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated________ effect on the provision of financial services." correct answers Material
What measures the fintech users as a percentage of the digitally active population? correct answers Fintech adoption rate
Open Banking standards do all but which of the following?
Make it possible to pass on information to third parties
Eliminate all risk in the online banking system
Streamline access to bank dataMake it easier to find banks with disabled access
Enable comparison of the features of different personal and business accounts correct answers Eliminate all risk in the online banking system
______ are online services that use algorithms to automatically perform many investment tasks done by a human financial advisor. correct answers Robo-advisors
Which of the following regarding banking-as-a-service is/are true? I. It has restricted the financial transparency options for account holders.
II. It is an end-to-end process that allows fintechs and other third parties to connect with banks'systems directly via APIs.
III. The process begins with a fintech or other third-party provider paying a fee to access the platform. correct answers II & III only
The advantages of the establishment of the NASDAQ include which of the following? I. It helped reduce the bid-ask spread.
II. It ended fixed securities commissions.
III. It led to the proliferation of ATMs. correct answers I & II only
Which of the following is not one of the advantages that retail banks maintain over fintechs?
Banks have tens of millions of trusting customers who interact with them daily.
The cost of capital for banks is close to zero.
Banks have decades of compliance experience.
Banks have more experienced legal teams.
Banks are known for having greater agility and a more innovative mindset. correct answers Banks are known for having greater agility and a more innovative mindset. A ______ is an application that runs exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. correct answers Smart contract
The financial crisis of 2008 eventually led to the growth of fintech. Which of the following is a true statement regarding this causal relationship?
Mobile technology retreated due to the crises, which allowed banks to regain footing and resulted in fintech companies exiting the marketplace.
Deregulation led to more banks competing and fewer, newly-established fintechs having success in the marketplace.
The high interest rate environment put upward pressure on profits, which decreased the incentive
for fintech companies to enter the marketplace.
The pullback of banks during the crises was due to increases in regulatory burdens and risk aversion, which allowed new fintech players to enter the marketplace. Subprime mortgages defaulted, which led to fintech companies retreating from the marketplace. correct answers The pullback of banks during the crises was due to increases in regulatory burdens and risk aversion, which allowed new fintech players to enter the marketplace.
By 2019, global smartphone penetration reached: correct answers 66.9 percent
In 2011, the introduction of Google Wallet (which later became Google Pay) allowed consumers to use smartphones equipped with near-field communication chips to make: correct answers Tap payments
The launch of Marcus by Goldman Sachs is an example of which stage of the evolving relationship between banks and fintech? correct answers Banks developing in-house fintech arms.
The partnership of Avant and Regions Bank to underwrite unsecured loans is an example of which stage of the evolving relationship between banks and fintech?
The "rent a bank" stage.
Banks taking stake in fintech startups.
Fintech firms providing technology and infrastructure to banks.
Banks developing in-house fintech arms.
Banks divesting fintech arms. correct answers Fintech firms providing technology and infrastructure to banks.
The Financial Stability Board defines fintech as "technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated________ effect on the provision of financial services." correct answers Material
What measures the fintech users as a percentage of the digitally active population? correct answers Fintech adoption rate
Open Banking standards do all but which of the following?
Make it possible to pass on information to third parties
Eliminate all risk in the online banking system
Streamline access to bank dataMake it easier to find banks with disabled access
Enable comparison of the features of different personal and business accounts correct answers Eliminate all risk in the online banking system
______ are online services that use algorithms to automatically perform many investment tasks done by a human financial advisor. correct answers Robo-advisors
Which of the following regarding banking-as-a-service is/are true? I. It has restricted the financial transparency options for account holders.
II. It is an end-to-end process that allows fintechs and other third parties to connect with banks'systems directly via APIs.
III. The process begins with a fintech or other third-party provider paying a fee to access the platform. correct answers II & III only
The advantages of the establishment of the NASDAQ include which of the following? I. It helped reduce the bid-ask spread.
II. It ended fixed securities commissions.
III. It led to the proliferation of ATMs. correct answers I & II only
Which of the following is not one of the advantages that retail banks maintain over fintechs?
Banks have tens of millions of trusting customers who interact with them daily.
The cost of capital for banks is close to zero.
Banks have decades of compliance experience.
Banks have more experienced legal teams.
Banks are known for having greater agility and a more innovative mindset. correct answers Banks are known for having greater agility and a more innovative mindset. A ______ is an application that runs exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. correct answers Smart contract
The financial crisis of 2008 eventually led to the growth of fintech. Which of the following is a true statement regarding this causal relationship?
Mobile technology retreated due to the crises, which allowed banks to regain footing and resulted in fintech companies exiting the marketplace.
Deregulation led to more banks competing and fewer, newly-established fintechs having success in the marketplace.
The high interest rate environment put upward pressure on profits, which decreased the incentive
for fintech companies to enter the marketplace.
The pullback of banks during the crises was due to increases in regulatory burdens and risk aversion, which allowed new fintech players to enter the marketplace. Subprime mortgages defaulted, which led to fintech companies retreating from the marketplace. correct answers The pullback of banks during the crises was due to increases in regulatory burdens and risk aversion, which allowed new fintech players to enter the marketplace.
By 2019, global smartphone penetration reached: correct answers 66.9 percent
In 2011, the introduction of Google Wallet (which later became Google Pay) allowed consumers to use smartphones equipped with near-field communication chips to make: correct answers Tap payments
The launch of Marcus by Goldman Sachs is an example of which stage of the evolving relationship between banks and fintech? correct answers Banks developing in-house fintech arms.
The partnership of Avant and Regions Bank to underwrite unsecured loans is an example of which stage of the evolving relationship between banks and fintech?
The "rent a bank" stage.
Banks taking stake in fintech startups.
Fintech firms providing technology and infrastructure to banks.
Banks developing in-house fintech arms.
Banks divesting fintech arms. correct answers Fintech firms providing technology and infrastructure to banks.
