Home work 4

CAP312

1. Explain symmetric and asymmetric cryptography with the help of

example

Ans 1

In a symmetric cipher, both parties must use the same key for encryption and decryption.
This means that the encryption key must be shared between the two parties before any
messages can be decrypted. Symmetric systems are also known as shared secret systems or
private key systems.

Symmetric ciphers are significantly faster than asymmetric ciphers, but the requirements for
key exchange make them difficult to use.

In an asymmetric cipher, the encryption key and the decryption keys are separate. In an
asymmetric system, each person has two keys. One key, the public key, is shared publicly.
The second key, the private key, should never be shared with anyone.

When you send a message using asymmetric cryptography, you encrypt the message using
the recipients public key. The recipient then decrypts the message using his private key. That
is why the system is called asymmetric.

Because asymmetric ciphers tend to be significantly more computationally intensive, they are
usually used in combination with symmetric ciphers to implement effect public key
cryptography. The asymmetric cipher is used to encrypt a session key and the encrypted
session key is then used to encrypt the actual message. This gives the key-exchange benefits
of asymmetric ciphers with the speed of symmetric ciphers.

2. Draw a diagram to represt the internet banking

Ans 2
 3. Enlist some of the events provided by the gateways
Ans 3
provides marketing and sales opportunities to reach your audience. Exhibit with Ecommerce
Gateway Pakikstan, we’ll help you move your technology to market.

Reach prequalified buyers

Establish alliances with vendors
Learn about your industry’s future
Build product and brand awareness
Differentiate your offerings
Test market new products
Stay ahead of your competition

4. Explain role of RBI to promote internet banking

Ans 4

Monetary Authority:

• Formulates, implements and monitors the monetary policy.

• Objective: maintaining price stability and ensuring adequate flow of credit to
productive sectors.

Regulator and supervisor of the financial system:

• Prescribes broad parameters of banking operations within which the country''s

banking and financial system functions.
 • Objective: maintain public confidence in the system, protect depositors'' interest and
provide cost-effective banking services to the public.
• Regulator and supervisor of the payment systems
o Authorises setting up of payment systems
o Lays down standards for operation of the payment system
o Issues direction, calls for returns/information from payment system operators.

Manager of Foreign Exchange

• Manages the Foreign Exchange Management Act, 1999.

• Objective: to facilitate external trade and payment and promote orderly development
and maintenance of foreign exchange market in India.

Issuer of currency:

• Issues and exchanges or destroys currency and coins not fit for circulation.
• Objective: to give the public adequate quantity of supplies of currency notes and coins
and in good quality.

Developmental role

• Performs a wide range of promotional functions to support national objectives.

Related Functions

• Banker to the Government: performs merchant banking function for the central and
the state governments; also acts as their banker.
• Banker to banks: maintains banking accounts of all scheduled banks.

5. Draw a flow chart to represent necessity of digital signature in

business

Ans 5