E-Finance Final

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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


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