AI-Driven Innovations in Blockchain-Based Trade Finance BBLC Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A trade finance bank is using a blockchain platform to process cross-border transactions. The compliance team needs to ensure that AI-driven fraud detection models comply with anti-money laundering (AML) regulations, which require explainable decisions. Which approach best meets this requirement?

   • AUse an interpretable machine learning model (e.g., logistic regression or decision tree) that generates clear reasons for flagging transactions, and store the model's decision rationale on the blockchain for auditability.
   • BUse AI to automatically block suspicious transactions without any human review, and rely on the blockchain's immutability to prove compliance.
   • CUse a black-box AI model but have human analysts manually review every flagged transaction and document their reasoning separately from the blockchain.
   • DUse a complex deep learning model that provides high accuracy but offers no explanation for its decisions, relying on the blockchain to record the final outcome.
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2. 27application · medium

   A trade finance consortium must comply with AML regulations that require monitoring of cross-border transactions for suspicious activity. They use a permissioned blockchain to share transaction data among member banks. How can AI assist while respecting data privacy?

   • AShare raw transaction data on the blockchain and let each bank run its own AI analysis independently.
   • BCentralize all transaction data into a single AI model hosted by one member bank.
   • CUse federated learning where each bank trains a local AI model on its own data and shares only model updates with the consortium.
   • DDisable AI monitoring and rely on manual compliance reviews by each bank.
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4. 28foundation · easy

   What is a common best practice identified in successful implementations of AI in blockchain trade finance?

   • AStarting with a small pilot project before scaling
   • BUsing AI to make final decisions without human oversight
   • CReplacing all existing systems immediately
   • DStoring all data on a public blockchain
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5. 29foundation · easy

   What is a key synergy between AI and blockchain in trade finance?

   • AAI stores data on blockchain to make it private
   • BBlockchain uses AI to mine cryptocurrencies
   • CBlockchain provides tamper-proof data storage, while AI analyzes that data for insights
   • DAI replaces the need for blockchain consensus mechanisms
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6. 30expert · hard

   A trade finance platform wants to offer dynamic pricing for trade credit based on predicted shipment delays. They have access to historical shipment data, weather forecasts, and port congestion indicators. The platform must also ensure that the pricing model is auditable and cannot be manipulated by any single party. Which architecture best meets these requirements?

   • AStore the AI model on IPFS and let each user run it locally to compute their own pricing.
   • BUse an off-chain AI model to compute risk scores, then feed the scores into a smart contract via a decentralized oracle network.
   • CHave a single trusted bank compute the risk scores and submit them directly to the smart contract.
   • DRun the AI model entirely on-chain so that all computations are transparent and immutable.
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