Foundations of Fintech Final
As of the taping of this semester's interview, small businesses may borrow up to $_____ from Kabbage
$250,000
Not all security offerings must be registered. Which of the following is most likely to be exempt?
A large private offering
According to Phil Agcaoili, Libra is ____
A technology that allows people to send money from one part of the world to another
According to Luke Timberlake, some companies are using ____ to allow financial institutions to trade securitized loans more efficiently
Blockchain technology
Eric Leiserson believes that the _____ Consumer Privact Act will be nationalized
California
According to Kevin Telford which country is innovating the fastest in open banking?
China
According to Robert Merton, which of the following is not a substitute for trust?
Complexity
Which of the following describes itself as a "decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third party interference?
Ethereum
A company selling a one-time, non-reloads Ls gift card must verify the person's identity
False
Any company selling releasable gift cards must verify the customer's identity.
False
Under the Monetary Control Act, the _____ has general oversight responsibility for the integrity of the payments system.
Federal Reserve
The ______ Act aimed to help businesses raise funds in public capital markets by minimizing regulatory requirements
JOBS
Funding U was founded by ______
Jeans Tarkenton
Kabbage was co-founded by Rob Frohwein and _____
Kathryn Petralia
The ______ granted the Federal Reserve general oversight responsibility for the integrity of the payments system
Monetary Control Act
The Federal Reserve of _____ runs Fedwire
New York
_____ effectively removed European banks' monopolies on user data
PSD2
As Glen Sarvady explains, all of the following are true about Libra except
Seven of the largest U.S. banks are backing it
According to Luke Timberlake, _____ is developing their own faster inter-bank payment system
The Federal Reserve
According to Tim Sheehan, often a fintech startup will need a partnership with all of the following except ____. This makes a fintech startup a "heavier lift" than starting a regular company.
The Federal Reserve
___ has general oversight responsibility for the payments system in the United States
The Federal Reserve
According to Luke Timberlake, ____ allows for the instantaneous transfer of money between two parties
The SWIFT network
To verify a message, the community must have the verification key and be sent _____
The message and the signed message
Which of the following is not a potential problem of a blockchain splitting into two blockchains?
Those opposing the split could no longer develop apps
According to the Robert Merton video, which of the following statements is not true?
Truly transparent services require the most trust
The open banking directive that required banks to open up their data in a secure and standardized format is specific to which country?
UK
FT partners defines open banking as
a framework wherein banks enable third parties to access consumers' financial data in order to provide new products and services
According to the Robert Merton video, _____ is essential for economic growth and stability
a well-functioning financial system
In order to trust a model, Robert Merton claims that one must ______
all of the above
Robert Merton claims that
all the above
Securitization
allows banks to reduce their geographic risk when writing mortgages
According to FT partners, banking-as-a-service ____
allows non-banks to offer banking products that are embedded into their own core offerings
The ACH network allows one to move money from one bank account directly to ____
another bank account
Banks
are required to keep home loans on their books
According to Eric Leiserson, criminal syndicates
are sharing best practices for commuting online fraud
According to Sean Banks, a weakness of ICOs is that
bad actors have caused problems in the past
For Greenlight Finacials to participate in the ACH network, they needed a ____ sponsor
bank
ACH facilitates
bank-to-bank transfers
According to Luke Timberlake, companies typically raise _____ in the seed round.
between $1 million and $5 million
Merton stressed that most trust
can only be partially won back through technologies such as blockchain
According to Luke Timberlake, banks
can't make profit on loans under $1 million
According to PWCs white paper on retail banking, which of the following is not a priority of 2020
creating wealth management platforms
A service like Greenlight, which sells reloadable cards, must collect all of the following pieces of data about the person adding funds to the card except their ____
credit score
According to the Robert Merton video, the economic and financial crises of the 1970s stimulated all of the following innovations except
cryptocurrencies
The public-private key pairings in Bitcoin are
derived from a specific elliptical curve cryptography
According to the Robert Merton video, Financial crises____ crush financial innovation
do not always
According to Eric Leiserson, consumers most want _____
ease of use
Blockchain technology_____
eliminates the needed for a trusted third party
Bitcoin miners ______ the right to add a new block to the existing chain
employ top mathematicians to find close-form solutions to random problems to earn
FT partners predicts that open banking will____
encourage innovation and competition
According to Eric Leiserson, the main challenge that companies face in successful identity verification is _______
establishing the balance between the effort required to pass someone through the system and fraud
According to Luke Timberlake
fees and time in payments is a race to the bottom
According to Kevin Carrol, pre-paid cards ___
have no interchange fees
In the Kabbage video, Rob Frohwen states that capital should have ____ diversity, flexibility, and permanences
immediacy
According to Kevin Carrol, ____
interchange fees are between the merchant and the issuer
Securitization
is the conversation of assets, especially loans, into marketable securities
The ____ is responsible for routing payment details through the card network to the consumer's issuing bank
merchant processor
The organization responsible for routing payment details through credit card networks to the consumer issuing bank and returning payment approval to the merchant is the
merchant processor
As Glen Sarvady explains, banks_____
must answer to an array of regulators
A Bitcoin miner changes the ___ randomly to find an acceptable ___
nonce, hash
The use of ______ governance in blockchain places the ultimate decisions on whether or not to adopt a coding change in the hands of the individuals supplying the computing capacity needed to run the blockchain.
off-chain
Alternative lending platforms___
perform the credit underwriting process in near real time
Gould and Fisk
printed fraudulent shares in the Erie Railroad and sold them to Vanderbilt
According to Eric Leiserson, ______
privacy is cultural and varies by country, geography, and even family
The Securities Act of 1933 ______
prohibited deceit, misrepresentation, and other fraud in the sale of securities
According to the Robert Merton Video, in the 2008 financial crisis there was a loss of trust in the ____ and ____ of financial services
providers; regulators
The verification key is also known as the ____ key
public
A cryptographic hash function must be all of the following except_____
quasi-anonymous
Which of the following is not a desirable property of a cryptographic has function?
reversible
According to Larry Wall, one should wait for ____ blocks before regarding a Bitcoin transaction to be confirmed
six
According to Larry Wall, for blockchain to be used it must be ____
superior for some cases relative to alternatives
Funding U
takes equity positions in college students
The Federal Reserve manages three key functions of the payments system. They are all of the following except_____
the creation and distribution of ledger technology
Interchange fees are payments pads to ___
the firms involved in processing a credit card transaction
To verify a message, the community must have the verification key and be sent
the message and the signed message
According to Robert Merton, to trust a model all of the following must be present except
the model must be complete
The main innovation of Satoshi Nakamoto in Bitcoin is _____
the prevention of double spending
Using the riddle analogy to explain digital signatures in blockchain, which is considered the public key?
the riddle
Using the riddle analogy to explain digital signatures in blockchain, which is considered the private key?
the solution to the riddle
Using the riddle analogy to explain digital signatures in blockchain, which is considered the signature?
the solution to the riddle
According to PWC's white paper report on retail banking, branch banking will____
undergo a significant transformation
Kabbage _____
used data to make funding decisions
Bitcoin miners use proof of ____
work
