TB-Chapter6-1

TB-Chapter6-1 - Chapter 6 Test Bank 1. An account created...

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Chapter 6 Test Bank 1. An account created by depositing funds and from which funds are paid out or withdrawn as needed is a: (a) credit card account (b) accumulating balance system (c) stored value payment system (d) none of the above Answer: (c) (see page 286) 2. All of the following offer low transaction costs for large transactions except: (a) credit cards (b) stored value/debit cards (c) cash (d) accumulating balance payment systems Answer: (c) (see page 288) 3. None of the following payment systems offers immediate monetary value except: (a) personal checks (b) credit cards (c) stored value/debit card (d) accumulating balance Answer: (c) (see page 288) 4. T/F Credit cards are the dominant form of online payment throughout the world. Answer: False (see page 289) 5. All of the following are important federal regulations of payment systems except: (a) Regulation Z (b) Regulation E (c) EFTA (d) Regulation P Answer: (d) (see page 289) 6. Which of the following is best suited for processing micropayments? (a) online stored value system (b) digital accumulating balance system (c) digital checking payment system (d) digital credit card system Answer: (b) (290) 7. T/F Digital cash is legal tender that is instantly convertible into other forms of value without the intermediation of any 3 rd parties. Answer: False (see page 302)
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8. Mondex is an example of : (a) smart card (b) digital checking (c) digital credit card (d) digital accumulating balance system Answer: (a) (see page 306) 9. The most common payment system in 2000 based on the number of transactions is: (a) cash (b) personal check (c) credit card (d) debit card Answer: (see page 284) 10. The most common payment system in 2000 based on dollar amount of transactions is: (a) cash (b) personal check (c) credit card (d) debit card Answer: (b) (see page 284) 11. All of the following are features of cash except: (a) it is instantly convertible into other forms of value without intermediation (b) it requires no authentication (c) it is anonymous (d) it provides float Answer: (d) (see pages 283-284) 12. All of the following are examples of ensured checks except: (a) money orders (b) personal checks (c) cashiers checks (d) travelers checks Answer: (b) (see page 285 ) 13. P2P payment systems are a variation on what type of payment system (a) stored value payment system (b) digital checking system (c) accumulating balance system (d) digital credit card system Answer: (a) (see page 287) 14. Microsoft’s Passport is an example of: (a) a client-based digital wallet (b) a server-based digital wallet
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(c) a digital credit card (d) a smart card Answer: (b) (see page 299) 15. All of the following are standards proposed for digital wallets except: (a) ECML (b) OTP (c) OBI (d) SSL Answer: (d) (see page 301) 16. All of the following are P2P payment systems except: (a) PayDirect (b) C2it (c) MoneyZap (d) MyPoints Answer: (d) (see page 304) 17. T/F: Checks are the fastest growing form of noncash payment. Answer: True (see page 311)
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This note was uploaded on 02/14/2012 for the course ISOM isom111111 taught by Professor Hong during the Spring '11 term at HKUST.

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TB-Chapter6-1 - Chapter 6 Test Bank 1. An account created...

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