Question 1

Because of the "unbanked," the U.S. government continues to use checks to make payments to individuals.

Accepted Answer

A) True 
 B)False  False

Question 2

Electronic banking began in the United States in

Accepted Answer

A)   1870s
B)   1920s
C)   1960s
D)   1980sE) A) and D)
F) B) and D)

Question 3

Most ATM systems today are

Accepted Answer

A)   Part of CHIPS
B)   Proprietary
C)   Part of S.W.I.F.T
D)   shared and nationalE) A) and B)
F) A) and C)

Question 4

Real-term Gross Settlement is used by

Accepted Answer

A)   Fedwire
B)   S.W.I.F.T
C)   CHIPS
D)   Intuit and CheckFreeE) C) and D)
F) A) and B)

Question 5

Same-day settlement for large-dollar transfers

Accepted Answer

A)   Multilateral netting
B)   Gross settlement
C)   Settlement at the end of the day
D)   Settlement for each transaction as it occursE) None of the above
F) All of the above

Question 6

Check and credit cards account for most retail funds transfers.

Accepted Answer

A) True 
 B)False

Question 7

Retail electronic banking refers to

Accepted Answer

A)   cash withdrawals from financial institutions
B)   small-dollar transfers
C)   electronic retail payments by individuals and businesses
D)   smart cardsE) A) and D)
F) B) and D)

Question 8

The most visible means of electronic banking is

Accepted Answer

A)   Home mortgage loans
B)   Internet brokerage
C)   Electronic commerce
D)   ATMsE) None of the above
F) A) and B)

Question 9

Brassage refers to

Accepted Answer

A)   The metal used in coins
B)   Private money
C)   Legal tender
D)   The cost of producing currencyE) B) and D)
F) None of the above

Question 10

One of the major advantages of electronic bill presentment is that vendors can present their bills electronically to the customer's bank and be paid immediately.

Accepted Answer

A) True 
 B)False  False

Question 11

Proprietary ATM systems are increasingly popular.

Accepted Answer

A) True 
 B)False

Question 12

ATMs are the most visible form of electronic banking.

Accepted Answer

A) True 
 B)False

Question 13

The Debt Collection Improvement Act of 1996 required

Accepted Answer

A)   That Regulation E include make provisions for late payments
B)   That debtors be given 90 days notice before foreclosure
C)   That the U.S. government payments to individuals be done electronically
D)   That banks notify retail customers of their account status when payments are overdueE) None of the above
F) All of the above

Question 14

An "open system electronic purse" refers to

Accepted Answer

A)   A debit card that can be used at multiple locations
B)   A smart card that can be used at multiple locations
C)   A credit card that can be used multiple locations
D)   A point-of-sale terminal for EDCE) A) and C)
F) A) and B)

Question 15

Settlement risk involves credit risk, liquidity risk, and interest rate risk.

Accepted Answer

A) True 
 B)False

Question 16

Payments made over CHIPS have "finality."

Accepted Answer

A) True 
 B)False

Question 17

Electronic money is legal tender.

Accepted Answer

A) True 
 B)False

Question 18

W.I.F.T. is used primarily for communications dealing with international funds transfers.

Accepted Answer

A) True 
 B)False  True

Question 19

Electronic Data Capture (EDC) is used by CHIPS for clearing large-dollar payments.

Accepted Answer

A) True 
 B)False

Question 20

Electronic banking began after the internet was developed and became widely used.

Accepted Answer

A) True 
 B)False

Exam 17: Electronic Banking

Because of the "unbanked," the U.S. government continues to use checks to make payments to individuals.

Correct AnswerverifiedFalse

Electronic banking began in the United States in

Correct AnswerverifiedShow Answer

Most ATM systems today are

Correct AnswerverifiedShow Answer

Real-term Gross Settlement is used by

Correct AnswerverifiedShow Answer

Same-day settlement for large-dollar transfers

Correct AnswerverifiedShow Answer

Check and credit cards account for most retail funds transfers.

Correct AnswerverifiedShow Answer

Retail electronic banking refers to

Correct AnswerverifiedShow Answer

The most visible means of electronic banking is

Correct AnswerverifiedShow Answer

Brassage refers to

Correct AnswerverifiedShow Answer

One of the major advantages of electronic bill presentment is that vendors can present their bills electronically to the customer's bank and be paid immediately.

Correct AnswerverifiedFalse

Proprietary ATM systems are increasingly popular.

Correct AnswerverifiedShow Answer

ATMs are the most visible form of electronic banking.

Correct AnswerverifiedShow Answer

The Debt Collection Improvement Act of 1996 required

Correct AnswerverifiedShow Answer

An "open system electronic purse" refers to

Correct AnswerverifiedShow Answer

Settlement risk involves credit risk, liquidity risk, and interest rate risk.

Correct AnswerverifiedShow Answer

Payments made over CHIPS have "finality."

Correct AnswerverifiedShow Answer

Electronic money is legal tender.

Correct AnswerverifiedShow Answer

W.I.F.T. is used primarily for communications dealing with international funds transfers.

Correct AnswerverifiedTrue

Electronic Data Capture (EDC) is used by CHIPS for clearing large-dollar payments.

Correct AnswerverifiedShow Answer

Electronic banking began after the internet was developed and became widely used.

Correct AnswerverifiedShow Answer

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True

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