AI-Driven Innovations in Blockchain-Based Trade Finance BBLC Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A trade finance consortium is building a platform that uses AI for fraud detection and blockchain for transaction recording. The consortium is concerned about the 'garbage in, garbage out' problem, where poor data quality leads to poor AI decisions. They also need to ensure that the AI's decisions are auditable. Which design best addresses both concerns?

   • AUse AI to make decisions and then store only the final decisions on the blockchain, without storing the underlying data or rationale.
   • BRecord all raw data on the blockchain first, then use AI to analyze it, and rely on the blockchain's immutability to ensure the AI's decisions are based on accurate data.
   • CUse AI to clean and validate data before it is recorded on the blockchain, and store the AI's data quality scores and decision rationale on the blockchain for auditability.
   • DUse a centralized database for all data and AI processing, and use blockchain only for final transaction records.
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A trade finance platform wants to offer faster credit decisions to SMEs. They have access to alternative data such as shipping history, social media sentiment, and IoT sensor data. The platform uses a blockchain to record credit decisions. What is the primary role of AI in this context?

   • AAnalyze non-traditional data to generate a credit risk score that is more inclusive than traditional credit scoring.
   • BGuarantee that all credit decisions are profitable for the platform.
   • CReplace the need for any human oversight in credit decisions.
   • DStore the credit decisions on the blockchain to ensure they are immutable.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A trade finance bank is required to comply with AML regulations that mandate real-time screening of transactions against sanctions lists. The bank uses a blockchain platform and wants to integrate AI to improve the accuracy of screening while reducing false positives. Which approach is most effective?

   • AUse AI to automatically block any transaction that matches a sanctions list entry, without human review, and record the block on the blockchain.
   • BUse AI to screen transactions but do not store screening results on the blockchain to protect privacy.
   • CUse a simple exact-match algorithm against sanctions lists, and store all transactions on the blockchain for transparency.
   • DUse AI to analyze transaction data and compare it against sanctions lists using fuzzy matching, and use blockchain to record the screening results and any overrides for auditability.
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A trade finance platform wants to use predictive analytics to forecast trade volumes and pricing for commodities. They have access to historical trade data, market prices, and news sentiment. Which AI approach would be most appropriate?

   • AUse a time-series forecasting model that incorporates external factors such as news sentiment and market prices to predict future trade volumes and pricing.
   • BUse a recommendation system to suggest which commodities to trade based on past preferences.
   • CUse a clustering algorithm to group similar trade transactions and identify patterns, but do not use it for forecasting.
   • DUse a classification model to categorize trade transactions as high or low risk, based on historical data.
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6. 20application · medium

   A shipping company wants to use AI to forecast demand for container space on major trade routes. They have historical booking data, economic indicators, and weather patterns. The forecasts will be used to adjust pricing and capacity allocation. What is the most important consideration when integrating these forecasts into their blockchain-based booking system?

   • AReplace the blockchain system with a centralized database to simplify AI integration.
   • BEnsure the forecast data is recorded on-chain to provide an auditable trail for pricing decisions.
   • CUse the forecasts to automatically execute all booking contracts without human review.
   • DKeep the forecasts confidential to prevent competitors from seeing pricing strategies.
   Reveal Solution Discussion Select an answer first