Technical and Operational Integration Models in Financial Blockchain Systems BFC Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A bank is integrating blockchain for trade finance. The bank's compliance team requires that all blockchain transactions be reviewed by a human before execution, but the operations team wants to automate the process to reduce manual effort. The bank's governance framework must balance these conflicting needs. Which governance approach is most appropriate?

   • ARequire human approval for every transaction, regardless of value or risk.
   • BUse a smart contract that automatically executes all transactions and logs them for later audit.
   • CAutomate all transactions without any human review to maximize efficiency.
   • DImplement a two-tier approval process where routine transactions are automatically executed based on pre-approved rules, and only exceptions or high-value transactions require human review.
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2. 17foundation · easy

   Which security measure is specifically used to control access to a permissioned blockchain network in a financial institution?

   • AEncrypting the entire blockchain ledger with a single key
   • BIdentity and access management (IAM) with role-based permissions
   • CIncreasing the block size to accommodate more transactions
   • DUsing a public blockchain to ensure transparency
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4. 18expert · hard

   A consortium of banks operates a permissioned blockchain for KYC data sharing. They want to connect this network to a public blockchain to enable cross-border payments. The consortium requires that KYC data never leaves the permissioned network, but payment transactions must be settled on the public blockchain. Which interoperability architecture best meets these conflicting requirements?

   • AUse a single middleware that reads KYC data from the permissioned network and writes it to the public blockchain for payment verification.
   • BReplicate all KYC data to the public blockchain to ensure transparency.
   • CUse a cross-chain bridge that transfers only payment tokens and settlement proofs, while keeping KYC data on the permissioned network and sharing it via off-chain APIs.
   • DReplace the permissioned network with the public blockchain to simplify interoperability.
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5. 19expert · hard

   A multinational bank is integrating blockchain into its trade finance operations across multiple countries. Each country has different regulatory requirements and the bank has a decentralized organizational structure. The bank wants to ensure consistent governance while allowing local adaptations. Which governance framework is most appropriate?

   • AA single global governance framework with no local adaptations.
   • BA federated governance model with a central steering committee and local compliance officers.
   • CA governance framework managed entirely by an external vendor.
   • DA completely decentralized governance model with no central oversight.
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6. 20foundation · easy

   What is a key characteristic of a phased integration strategy for blockchain in a financial institution?

   • AThe blockchain is introduced gradually, with legacy systems continuing to operate during the transition.
   • BAll legacy systems are decommissioned on the first day of the blockchain rollout.
   • CThe blockchain network is only used for non-critical transactions to avoid risk.
   • DThe blockchain is deployed only in a test environment and never in production.
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