What is a potential drawback of decentralized finance (DeFi)?

DeFi is susceptible to smart contract vulnerabilities and hacks

What is the primary function of an oracle in blockchain-based smart contracts?

To provide external real-world data to smart contracts

Which major risk is associated with stablecoins?

Lack of underlying asset backing

Why is Know Your Customer (KYC) important in FinTech?

It helps prevent fraud and financial crimes

Which of the following is NOT a common use case of AI in FinTech?

Predicting cryptocurrency prices with 100% accuracy

In the context of decentralized finance (DeFi), what is "yield farming"?

Technique to maximize returns by moving crypto across liquidity pools

Which of the following is a key challenge for neobanks compared to traditional banks?

Regulatory compliance and profitability

How does biometric authentication improve digital payments?

By replacing traditional PIN codes with faster, more secure methods

Which of the following statements about blockchain technology is FALSE?

Private blockchains are always more secure than public blockchains

What is an advantage of using AI-powered robo-advisors over traditional financial advisors?

Provide financial advice at a lower cost and with greater accessibility

Which of the following best describes the role of FinTech in the financial industry?

Enhancing financial services through technology

Which of the following best describes regulatory technology (RegTech)?

AI-driven solutions for fraud detection and compliance

What is the key difference between proof-of-work (PoW) and proof-of-stake (PoS) blockchains?

PoW requires mining, while PoS selects validators based on stake

Which of the following best describes the impact of open banking?

It promotes competition by enabling third-party access to financial data

What is the primary advantage of FinTech compared to traditional financial services?

It provides more accessible, faster, and cheaper financial solutions

What does “embedded finance” refer to?

The integration of financial services into non-financial platforms

Which of the following describes the role of alternative data in credit scoring?

Integrates non-traditional data (e.g. socmed) and transaction history

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FIN313 Ice Breaking

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Questions 20

Answers

1
What is a potential drawback of decentralized finance (DeFi)?
DeFi platforms are less accessible than traditional banks
DeFi platforms offer fewer financial services than traditional banks
DeFi transactions are always slower than traditional banking transactions
DeFi is susceptible to smart contract vulnerabilities and hacks
2
Which of these companies is NOT considered a FinTech firm?
Revolut
Robinhood
Stripe
Airbnb
3
What is the primary function of an oracle in blockchain-based smart contracts?
To verify transactions on the blockchain
To validate cryptographic signatures
To create new tokens within a blockchain ecosystem
To provide external real-world data to smart contracts
4
Which major risk is associated with stablecoins?
Slow transaction speeds
Excessive volatility
Inability to integrate with traditional finance
Lack of underlying asset backing
5
Why is Know Your Customer (KYC) important in FinTech?
It allows financial institutions to share user data freely
It replaces credit scoring systems
It helps prevent fraud and financial crimes
It speeds up loan approvals
6
Which of the following is NOT a common use case of AI in FinTech?
Algorithmic trading
Predicting cryptocurrency prices with 100% accuracy
Credit scoring
Fraud detection
7
In the context of decentralized finance (DeFi), what is "yield farming"?
A blockchain-based crowdfunding method
Technique to maximize returns by moving crypto across liquidity pools
The process of earning passive income through Bitcoin mining
A method of securing the blockchain network
8
Which of the following is a key challenge for neobanks compared to traditional banks?
Higher operating costs
Difficulty in customer acquisition
Regulatory compliance and profitability
Lack of digital services
9
How does biometric authentication improve digital payments?
By allowing third-party applications to access banking details
By replacing traditional PIN codes with faster, more secure methods
By increasing transaction fees for security reasons
By making payments fully anonymous
10
Which of the following statements about blockchain technology is FALSE?
Smart contracts can execute automatically
Private blockchains are always more secure than public blockchains
Blockchain transactions are immutable
Public blockchains rely on consensus mechanisms
11
What is an advantage of using AI-powered robo-advisors over traditional financial advisors?
They always generate higher investment returns
Provide financial advice at a lower cost and with greater accessibility
They eliminate the need for human financial experts
They require complex regulatory oversight
12
Which of the following best describes the role of FinTech in the financial industry?
Making financial services completely free
Eliminating regulatory oversight in banking
Replacing traditional financial institutions
Enhancing financial services through technology
13
Which of the following best describes regulatory technology (RegTech)?
A method for tracking stock prices
A type of government-owned digital currency
A payment gateway for online transactions
AI-driven solutions for fraud detection and compliance
14
What is the key difference between proof-of-work (PoW) and proof-of-stake (PoS) blockchains?
PoW requires mining, while PoS selects validators based on stake
PoW allows multiple transactions per block, while PoS does not
PoS uses computational power, while PoW uses financial stake
PoS transactions are slower than PoW transactions
15
Which of the following best describes the impact of open banking?
It replaces mobile banking applications
It promotes competition by enabling third-party access to financial data
It allows banks to freely share customer data with all businesses
It eliminates the need for traditional banks
16
What is the primary advantage of FinTech compared to traditional financial services?
It operates without any regulations
It reduces the need for financial literacy
It completely eliminates fraud risks
It provides more accessible, faster, and cheaper financial solutions
17
What does “embedded finance” refer to?
The integration of financial services into non-financial platforms
A new method of securing blockchain transactions
A technology that connects multiple banking systems
The use of AI in financial decision-making
18
Which of the following FinTech innovations is most commonly associated with cross-border payments?
Blockchain-based remittances
NFC payments
Robo-advisors
AI-driven financial planning
19
Which regulatory approach is commonly used to oversee FinTech innovations?
Traditional banking laws only
Full bans on all FinTech startups
Sandbox regulation
Zero regulation policy
20
Which of the following describes the role of alternative data in credit scoring?
It replaces the use of machine learning in risk assessment
It completely eliminates the need for credit bureaus
Integrates non-traditional data (e.g. socmed) and transaction history
It relies only on traditional factors such as income and employment history

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