FinTech Quiz

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

• Replacing traditional financial institutions

• Enhancing financial services through technology

• Eliminating regulatory oversight in banking

• Making financial services completely free

Which of these companies is NOT considered a FinTech firm?

• Stripe

• Robinhood

• Airbnb

• Revolut

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

• It reduces the need for financial literacy

• It completely eliminates fraud risks

• It provides more accessible, faster, and cheaper financial solutions

• It operates without any regulations

Which of the following FinTech innovations is most commonly associated with cross-border payments?

• NFC payments

• Blockchain-based remittances

• AI-driven financial planning

• Robo-advisors

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

Which of the following statements about blockchain technology is FALSE?

• Blockchain transactions are immutable

• Public blockchains rely on consensus mechanisms

• Smart contracts can execute automatically

• Private blockchains are always more secure than public blockchains

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

• PoS uses computational power, while PoW uses financial stake

• PoW requires mining, while PoS selects validators based on stake

• PoS transactions are slower than PoW transactions

• PoW allows multiple transactions per block, while PoS does not

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

• A method of securing the blockchain network

• A technique to maximize returns by moving crypto assets across liquidity pools

• The process of earning passive income through Bitcoin mining

• A blockchain-based crowdfunding method

Which major risk is associated with stablecoins?

• Excessive volatility

• Lack of underlying asset backing

• Inability to integrate with traditional finance

• Slow transaction speeds

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

• To verify transactions on the blockchain

• To provide external real-world data to smart contracts

• To create new tokens within a blockchain ecosystem

• To validate cryptographic signatures