AI-Driven Innovations in Blockchain-Based Trade Finance BBLC Practice Questions (Page 8)

Questions 36–40

1. 36expert · hard

   A global trade consortium implemented an AI-based fraud detection system on its blockchain platform. The system reduced false positives by 30%, but the consortium is now facing a new challenge: the AI model's decisions are not explainable to regulators, and some member banks are concerned about liability. Which action best addresses the regulatory and trust concerns?

   • AAllow each bank to run its own proprietary AI model and share only the final alert decisions.
   • BAdopt explainable AI (XAI) techniques that provide human-readable justifications for each fraud alert.
   • CEncrypt all AI model parameters and store them on-chain to prove the model's integrity.
   • DRemove AI from the decision process and rely solely on manual reviews by compliance officers.
   Reveal Solution Discussion Select an answer first
2. 37expert · hard

   A bank is designing an AI-based fraud detection system for its blockchain trade finance platform. The system must minimize false positives to avoid disrupting legitimate transactions, but also must catch sophisticated fraud that involves collusion between multiple parties. Which approach best balances these competing requirements?

   • AUse a rule-based system that flags any transaction that deviates from predefined patterns, ensuring low false positives but missing novel fraud.
   • BUse a single AI model trained on historical fraud cases, and set a high threshold for flagging transactions to minimize false positives.
   • CUse a deep learning model that automatically flags all transactions with a probability above 0.5, without any human review, to maximize detection.
   • DUse an ensemble of AI models that analyze different aspects (e.g., transaction patterns, network relationships, document anomalies) and combine their outputs with a weighted scoring system that can be tuned to balance precision and recall.
   Reveal Solution Discussion Select an answer first
4. 38foundation · easy

   How does AI improve fraud detection in trade finance?

   • ABy analyzing historical transaction patterns to identify anomalies
   • BBy storing all documents on a public blockchain
   • CBy encrypting all transaction data
   • DBy requiring manual approval for every transaction
   Reveal Solution Discussion Select an answer first
5. 39foundation · easy

   How does AI enhance smart contracts in trade finance?

   • ABy making the contract terms unchangeable after deployment
   • BBy enabling the contract to interpret external data and trigger actions based on patterns
   • CBy storing the contract code in a centralized database
   • DBy replacing the need for a blockchain network
   Reveal Solution Discussion Select an answer first
6. 40foundation · easy

   How can predictive analytics help in anticipating supply chain disruptions?

   • ABy analyzing external factors like weather and geopolitical events
   • BBy automatically rerouting shipments in real-time
   • CBy encrypting shipment records
   • DBy storing shipment data on a blockchain
   Reveal Solution Discussion Select an answer first