JAIIB Paper 2 Module C Quiz 4

Correct answer: Option 4. SWIFT carries financial messages between institutions; it is not itself a deposit-taking bank or a settlement system for every message. Topic area: Networks and EFT — SWIFT.

Correct answer: Option 1. NEFT is an RBI-operated electronic funds transfer system. It is available round the clock, with transactions processed in batches under the system‘s operating framework. Topic area: Networks and EFT — NEFT.

Correct answer: Option 3. RTGS means Real Time Gross Settlement: real-time processing and gross settlement transaction by transaction. RBI‘s RTGS is available 24×7, subject to system rules. Topic area: Networks and EFT — RTGS.

Correct answer: Option 3. RBI‘s RTGS system has a minimum transaction amount of ₹2 lakh and no RBI-prescribed upper ceiling, although a bank may set channel-specific limits. Topic area: Networks and EFT — RTGS minimum amount.

Correct answer: Option 4. NEFT can be used for small as well as large transfers; RBI does not prescribe a minimum amount. A bank may apply its own channel or product controls. Topic area: Networks and EFT — NEFT minimum amount.

Correct answer: Option 3. Gross settlement settles transactions individually. RTGS combines this with real-time settlement, reducing the time a transaction remains unsettled. Topic area: Networks and EFT — Gross settlement.

Correct answer: Option 4. Net settlement calculates net obligations among participants, which can reduce the amount of funds needed for settlement compared with gross settlement. Topic area: Networks and EFT — Net settlement.

Correct answer: Option 2. Electronic clearing arrangements support recurring payments and bulk transfers such as salary, pension, dividend or bill collections, depending on the applicable system. Topic area: Networks and EFT — Electronic Clearing Service / electronic clearing.

Correct answer: Option 2. A payment message communicates transaction details or instructions. Messaging, clearing and settlement are related but distinct functions. Topic area: Networks and EFT — Payment message.

Correct answer: Option 1. PKI supports trust in digital certificates and public-key operations, such as authentication and digital signatures, when correctly implemented and managed. Topic area: Networks and EFT — Public key infrastructure (PKI).

Correct answer: Option 4. A digital signature uses cryptographic mechanisms and a private key to support authenticity and integrity. A simple image of a handwritten signature does not provide the same properties. Topic area: Networks and EFT — Digital signature.

Correct answer: Option 4. Data in transit should be protected with suitable encryption and authentication. This differs from data at rest, which is stored. Topic area: Networks and EFT — Data in transit.

Correct answer: Option 2. A VPN can protect communications across an untrusted network, but endpoint security, access control and monitoring remain necessary. Topic area: Networks and EFT — Virtual Private Network (VPN).

Correct answer: Option 1. DoS attacks target availability by consuming resources or disrupting service. Distributed DoS attacks use multiple sources, making mitigation more complex. Topic area: Networks and EFT — Denial-of-Service (DoS) attack.

Correct answer: Option 1. DDoS traffic comes from multiple sources, often compromised devices. Mitigation may involve filtering, upstream protection, rate limiting and coordinated response. Topic area: Networks and EFT — Distributed Denial-of-Service (DDoS).

Correct answer: Option 2. Segmentation limits lateral movement and reduces exposure by restricting communication between systems according to business need. Topic area: Networks and EFT — Network segmentation.

Correct answer: Option 2. Institutions must secure SWIFT-connected environments, control privileged access and validate payment instructions. Network security does not eliminate the need for internal controls. Topic area: Networks and EFT — SWIFT message authentication and security.

Correct answer: Option 4. Interoperability enables customers and institutions to transact across compatible systems, improving reach and convenience subject to scheme rules and safeguards. Topic area: Networks and EFT — Payment-system interoperability.

Correct answer: Option 1. Settlement finality is determined by the system‘s legal and operational rules. A screen notification or payment initiation does not always prove final settlement. Topic area: Networks and EFT — Settlement finality.

Correct answer: Option 3. Payment arrangements can separate the customer instruction/channel from interbank clearing and settlement. The precise architecture varies by system. Topic area: Networks and EFT — Two-level funds transfer concept.