Data Accuracy and Data Consistency CT-FT Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   What is the role of data governance in ensuring data accuracy and consistency?

   • ATo ensure data is accessible to all users without restrictions.
   • BTo store data in a centralized database.
   • CTo define policies, standards, and responsibilities for data quality management.
   • DTo directly correct all data errors in the systems.
   Reveal Solution Discussion Select an answer first
2. 17expert · hard

   A test manager is planning the data accuracy testing strategy for a new trading platform. The platform will handle high volumes of transactions. The test manager needs to choose between two techniques: (1) full reconciliation of all transactions at the end of each day, or (2) real-time data validation of each transaction as it is processed. The business requires both accurate data and timely detection of errors. What is the MOST BALANCED approach?

   • AImplement real-time validation for critical fields (e.g., trade price, quantity) and a daily full reconciliation for all transactions.
   • BPerform real-time validation and skip reconciliation, but increase the frequency of data backups.
   • CUse only daily reconciliation, as it is more thorough and cost-effective than real-time validation.
   • DUse only real-time validation, as it catches errors immediately and eliminates the need for end-of-day reconciliation.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   During user acceptance testing of a new loan origination system, testers discover that the 'Annual Percentage Rate' (APR) is calculated incorrectly for loans with a 30-day month. The error is traced to a hard-coded assumption of 360 days in the calculation logic. What is the MOST SIGNIFICANT business impact of this data accuracy defect?

   • ACustomers may be charged an incorrect APR, leading to regulatory fines and reputational damage.
   • BThe loan origination system will be unable to connect to the credit bureau API.
   • CThe test team will need to write more test cases for the next release.
   • DThe loan origination system will experience slower performance during month-end processing.
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   What is a data management practice that supports data consistency?

   • AUsing a master data management (MDM) system to provide a single source of truth.
   • BUsing different data formats for different systems.
   • CPerforming data backups daily.
   • DAllowing each department to maintain its own customer database.
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A bank's loan system and its collections system both track the 'Outstanding Balance' for each loan. The loan system shows a balance of $5,000, while the collections system shows $4,500. The difference is traced to a payment that was applied in the collections system but not yet reflected in the loan system. This is an example of a data inconsistency caused by:

   • AA data entry error in the loan system.
   • BA rounding error in the collections system.
   • CA data governance policy that allows different balance definitions.
   • DA lack of real-time synchronization between the two systems.
   Reveal Solution Discussion Select an answer first