Electronic Payment Systems

Multiple Choice
1. Which of the following is not a common use of smart cards? [Hint]
Loyalty programs
PC replacement
Transportation identification
Financial cards

2. Which of the following is not an example of an e-payment? [Hint]

Smart cards
Cash
Digital checks
Electronic billing

3. Which of the following is not one of the parties usually associated with electronic
payments? [Hint]
Issuer
Customer/payer/buyer
Enforcer
Regulator

4. Business A provides a system of credits that allow other businesses to make

online purchases. What role is Business A performing? [Hint]
Issuer
Customer/payer/buyer
Merchant/payee/seller
Regulator

5. When referring to the key issues in trust in electronic payments, what do the
letters in the acronym P.A.I.N. stand for? [Hint]
Privacy, Authentication, Integrity and Nonrepudiation
Privacy, Authentication and authorization, Identity and Nonrepudiation
Privacy, Authentication and authorization, Integrity and Nonrepudiation
 Privacy, Authentication, Identity and Nonrepudiation

6. Which of the following is not one of the four basic parts of cryptography? [Hint]
Plaintext
Ciphertext
Key
Symmetric key

7. The mathematical formula used to encrypt information is what part of

cryptography? [Hint]
Plaintext
Ciphertext
Encryption algorithm
Key

8. Which of the following is not one of the major types of payment cards? [Hint]
Credit cards
Charge cards
Flip cards
Debit cards

9. Mike has an e-card that stores his medical records. What type of smart card is
he using? [Hint]
Integrated circuit microprocessor card
Integrated circuit memory card
Optical memory card
Contactless card

10 Jackie has an e-card that she uses to purchase office supplies for the company
. she works for. What type of smart card is she using? [Hint]
Credit card
Purchase card
Smart card
Contact card
11 Morgan has an e-card that he uses to access different parts of his company's
. R&D offices. What type of smart card is he using? [Hint]
Credit card
Purchase card
Smart card
Contact card

12 Jackie has an e-card that she waves at the turnstile to enter the subway. What
. type of smart card is she using? [Hint]
Credit card
Purchase card
Contact card
Contactless card

13 Which of the following is not a limitation of e-cash? [Hint]

. Lack of potential uses
Software installation
Adopting merchants
Adopting individuals

14 Which of the following is not characteristic of an e-check? [Hint]

. Same information as a standard check
Can be used where paper checks are used
Work under a new, enhanced legal framework
Work in essentially the same way paper checks work

15 Mark pays his credit card bill on the credit card's Web site. Which e-billing
. method is described? [Hint]
Individual biller
Billing consolidator
Rapid e-billing
Cooperative billing
1. Which of the following is not a common use of smart cards?

Your Answer: PC replacement

This is one of the common uses for smart cards.

2. Which of the following is not an example of an e-payment?

Your Answer: Cash

This is an example of a traditional payment, not an electronic payment.

3. Which of the following is not one of the parties usually associated with
electronic payments?

Your Answer: Enforcer

This is not one of the four defined roles in an e-payment.

4. Business A provides a system of credits that allow other businesses to make

online purchases. What role is Business A performing?

Your Answer: Issuer

Business A is the issuer of these credits.

5. When referring to the key issues in trust in electronic payments, what do the
letters in the acronym P.A.I.N. stand for?

Your Answer: Privacy, Authentication and authorization, Identity and

Nonrepudiation
Correct Answer: Privacy, Authentication and authorization, Integrity and
Nonrepudiation

The correct issues are: Privacy, Authentication and authorization, Integrity

and Nonrepudiation.

6. Which of the following is not one of the four basic parts of cryptography?

Your Answer: Symmetric key

 This is not one of the four basic parts of cryptography. It is a type of key.

7. The mathematical formula used to encrypt information is what part of

cryptography?

Your Answer: Encryption algorithm

This is the item described.

8. Which of the following is not one of the major types of payment cards?

Your Answer: Flip cards

This is one of the three major types of payment cards in use today.

9. Mike has an e-card that stores his medical records. What type of smart card is
he using?

Your Answer: Optical memory card

This is the type of card described.

10. Jackie has an e-card that she uses to purchase office supplies for the
company she works for. What type of smart card is she using?

Your Answer: Purchase card

This is the type of card described.

11. Morgan has an e-card that he uses to access different parts of his company's
R&D offices. What type of smart card is he using?

Your Answer: Smart card

This is the type of card described.

12. Jackie has an e-card that she waves at the turnstile to enter the subway.
 What type of smart card is she using?

Your Answer: Contactless card

This is the type of card described.

13. Which of the following is not a limitation of e-cash?

Your Answer: Lack of potential uses

There are many potential uses of e-cash.

14. Which of the following is not characteristic of an e-check?

Your Answer: Work under a new, enhanced legal framework

This is not one of the characteristics of an e-check.

15. Mark pays his credit card bill on the credit card's Web site. Which e-billing
method is described?

Your Answer: Individual biller

This is the e-billing model described.