E-Finance Final
Digital lending process is much shorter than traditional lending process.
TRUE
Capital One bought ING Direct USA for ____.
$9 billion
Consumer credit risk can be measured by the following except ___.
Call option position
Crowdfunding allows investors to select from hundreds of projects and invest as little as $ ______.
10
Which of the following is speculating?
Day trading
Investing is a ____ process.
Long term
Discount brokers may have much ____ investment minimums compared to full service broker
Lower
Since the internet revolution and the ____ revolution, financial technology has grown explosively.
Mobile internet/smartphones
P2P lending saves the operating cost.
TRUE
The microloan applicants can offer collateral in most cases.
FALSE
There is no liquidity risk in P2P lending.
FALSE
Unlike conventional lenders, microfinanciers don't charge interest on loans.
FALSE
Compared to fintech, traditional firms are superior in ____.
Fraud protection
Capital One was bidding for ING Direct along with ____.
General Electric Co.
Which country does the DAX belong to?
Germany
Many people in the world still don't have access to a bank account
TRUE
Online banking has higher interest rate than traditional banking
TRUE
Online broker can execute trade orders much faster than they ever could over the telephone.
TRUE
P2P lender has the right to pick up loans by themselves.
TRUE
P2P lenders can re-sell their loans to the market.
TRUE
Robo-advisors utilize algorithms to automate investment advice to lower its cost and increase accessibility. It's available 24/7.
TRUE
Speculating is riskier than investing.
TRUE
The Statue of Liberty is an example of crowdfunding.
TRUE
The goal of microfinance is to ultimately give impoverished people an opportunity to become self-sufficient.
TRUE
Traditionally credit risk refers to the risk that a lender may not receive the owed principal and interest
TRUE
Using a broker also involves risk
TRUE
Using a mix of Al, machine learning and automation, large quantities of data can be analyzed in a heartbeat to completely automate the underwriting process of loans.
TRUE
With reward-based crowdfunding, people can pledge money to a new creative art project, a novel technology product in development, or to a music artist producing a new album.
TRUE
Donation-based crowdfunding sites allowed ______ to solicit donations from the crowd.
Very small organizations and individuals
Long lines in traditional banking is a top disadvantage.
TRUE
Why do people want to lend on P2P lending websites?
Better return on their cash savings
P2P lending has only existed since ____.
2005
The interest-free period of Huabei can be up to ___ days.
41
The approval of Face-to-face traditional lending usually takes ___.
60-90 Days
Which one is not an advantage of online banking?
A verified reason to have a smartphone
Huabei is a function embedded in ____.
Alipay
North America produces most of the fintech startups, with ____ a relatively close second.
Asia
P2P lending offers advantages to ___.
Both- lenders and Borrowers
Online banking offers customers almost every service traditionally available through a local branch including _____.
Deposits, transfers, online bill payments
The P2P lending sites don't charge loan origination fees.
FALSE
Capital One is a brick and mortar bank and it has no online banking service
FALSE
Capital One never bought any traditional banks before acquiring ING Direct USA.
FALSE
Crowdfunding first emerged in 2009.
FALSE
Crowdfunding is the use of small amounts of capital from a small number of individuals to finance a new business venture.
FALSE
Fin-tech industry only has start-ups
FALSE
Financial inclusion can definitely reduce poverty.
FALSE
Financial services are among the most least regulated sectors in the world
FALSE
Fintech customers don't use any traditional services offered by banks
FALSE
Fintech doesn't include the development and use of crypto-currencies such as bitcoin.
FALSE
Fintech is a multi-million industry
FALSE
Full-service brokers also typically don't charge annual service charges or maintenance fees on your account.
FALSE
Home improvements loans and auto financing are also not available at P2P lending sites.
FALSE
Huabei is only adopted in TMall.
FALSE
Lenders on P2P lending platform are considered as creditors of the platform.
FALSE
Microfinancing organizations don't support activities that providing the basics- like bank checking and savings accounts
FALSE
Microloans are often actually lower than the average repayment rate on more conventional forms of financing.
FALSE
Most P2P lending companies are non-for-profit.
FALSE
Most banks charge fees for online banking.
FALSE
Most online banking permits the purchase of traveler's checks, bank drafts, certain wire transfers
FALSE
No credit risk is involved with credit cards.
FALSE
Online banks are not assured by FDIC.
FALSE
Online brokers offer higher fees compared to bricks-and-mortar brokers.
FALSE
P2P lending is risk free.
FALSE
Automation of processes and digitization of data makes fintech systems vulnerable to attacks from
Hackers
Traditional banking usually has ___ fee ___ online banking.
Higher, than
FinTech adoption in The US _____ from _____ 2015 to ___ 2019
Increase, 17%, 46%
Fintech now includes different sectors and industries such as ______.
Investment management, retail banking, education.
Ing is a multinational bank with Dutch root.
TRUE
Real Estate Crowdfunding provides ______ to buyers of real estate.
Mortgages
Which of the following is not a benefit of online trading?
No personal relationships with brokers
Ally, Interactive Brokers, EXTRADE, Fidelity, Lightspeed, Tradestation, TD Ameritrade are all
Online brokers
There is the risk of making investment mistakes or over-investing online trading because _____.
Online trading is so easy to operate.
Peer-to-Peer (P2P) lending enables individuals to obtain loans directly from ___.
Other individuals
In the process of P2P lending, who monitor and control the credit risk?
P2P lending websites
______ sets the rates and terms for loans of P2P lending websites.
P2P lending websites
What are the challenges of financial inclusion?
Poor infrastructure, poor telecom connectivity. And lack of local support for scalability of banking services
___ regulates equity-based crowdfunding ventures in the United States.
SEC
What are traded on stock markets?
Securities
Companies can raise funds by ____ to invest or expand their business.
Selling shares
P2P lender has the following risk expect ____.
Spot and forward risk
All brokers execute trades for their clients
TRUE
An online broker is a trading provider that allows its clients to open and close positions using a digital platform.
TRUE
Because of the diversity of offerings in fintech and the disparate industries it touches, it is difficult to formulate a single and comprehensive approach to these problems.
TRUE
Consumers are advised to use their own data plans, rather than public Wi-Fi networks when using online banking, to prevent unauthorized access.
TRUE
Consumers can use P2P lending to pay off credit card debt at a lower interest rate.
TRUE
Crowdfunding includes P2P lending.
TRUE
Cybersecurity and fintech are intertwined
TRUE
Debt based Crowdfunding provides interest as return to investors.
TRUE
Digital lenders need to monitor the credit risks of the borrowers.
TRUE
Digital lending relies on technology exclusively to perform credit evaluations and to authenticate business loans through online platforms and digital apps.
TRUE
Financial inclusion has a wider meaning, and it encompasses a wider range of players and institutions. It refers to individuals and businesses having the opportunity to access and the ability to use a diverse range of appropriate financial services that are responsibly and sustainably provided by formal financial institutions.
TRUE
Fintech, the word, is a combination of "financial technology."
TRUE
If there is a higher level of perceived credit risk, investors and lenders usually demand a higher rate of interest for their capital.
TRUE
If you have a lot of issues with your bank account, it's easier to walk in a traditional banking to explain other than being put on hold for online banking.
TRUE
If you have money in a bank account, you already lent the money to the bank.
TRUE
The rise of fin-tech forces _____ to embrace new digital technology.
Traditional lenders, insures and asset managers
