Fintech | Questions with 100% Verified Answers | Latest Update
2026/2027
Question: Fintech
Answer: is a new industry that uses technology to improve activities in finance. The use of smartphones for
mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial
services more accessible to the general public.
Question: Crowd Funding
Answer: Soliciting project funds, business investment, or business loans from members of the public.
Question: Robo-advisors
Answer: Provide digital, automatic portfolio balancing based on customer goals
Question: Ethereum
Answer: Designed to provide secure exchanges for any type of transaction
Question: Underbanked
Answer: people with no bank account
Question: Lucas Critique
Answer: Models used for policy evaluation are large scale, macro based models; evaluations may be seriously
misleading if the behavior of persons depends on expectations. When there is a change in the government
policy rule, expectations and behaviors may change from that estimated. People in 2008 had never
experiences such a meltdown and the policy responses of the Fed/new regulation; Because these policy moves
were brand new, unknown how people's behavior would change
Question: Monetary Transmission Mechanisms
Answer: 1. Traditional- Fed adjusts interest rates to alter Consumption and Investment;
2. Banking-Lending and Balance Sheet Channels- Banks play a special role in overcoming
information problems in borrowing and lending; OMO change banks' reserves and multiple
expansion/contraction of the money supply is possible. Expansionary Policy: asset and property values
increase; with greater household wealth, banks will lend more to consumers because of the increased value in
collateral; lower interest rates means higher profits and firm values boosting confidence and investment.
3. Asset Price Channels- lower interest rates boosts stock prices and increase demand
for mortgages so house prices rise. So wealth increase as a result which leads to greater spending
Question: Lags in Monetary Policy (3 types)
Answer: Data lag is the delay in getting good quality data; recognition lag- randomness in the data can make it
tough to recognize the actual state of the economy; effectiveness lag: how long after implementation before
policy takes effect
2026/2027
Question: Fintech
Answer: is a new industry that uses technology to improve activities in finance. The use of smartphones for
mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial
services more accessible to the general public.
Question: Crowd Funding
Answer: Soliciting project funds, business investment, or business loans from members of the public.
Question: Robo-advisors
Answer: Provide digital, automatic portfolio balancing based on customer goals
Question: Ethereum
Answer: Designed to provide secure exchanges for any type of transaction
Question: Underbanked
Answer: people with no bank account
Question: Lucas Critique
Answer: Models used for policy evaluation are large scale, macro based models; evaluations may be seriously
misleading if the behavior of persons depends on expectations. When there is a change in the government
policy rule, expectations and behaviors may change from that estimated. People in 2008 had never
experiences such a meltdown and the policy responses of the Fed/new regulation; Because these policy moves
were brand new, unknown how people's behavior would change
Question: Monetary Transmission Mechanisms
Answer: 1. Traditional- Fed adjusts interest rates to alter Consumption and Investment;
2. Banking-Lending and Balance Sheet Channels- Banks play a special role in overcoming
information problems in borrowing and lending; OMO change banks' reserves and multiple
expansion/contraction of the money supply is possible. Expansionary Policy: asset and property values
increase; with greater household wealth, banks will lend more to consumers because of the increased value in
collateral; lower interest rates means higher profits and firm values boosting confidence and investment.
3. Asset Price Channels- lower interest rates boosts stock prices and increase demand
for mortgages so house prices rise. So wealth increase as a result which leads to greater spending
Question: Lags in Monetary Policy (3 types)
Answer: Data lag is the delay in getting good quality data; recognition lag- randomness in the data can make it
tough to recognize the actual state of the economy; effectiveness lag: how long after implementation before
policy takes effect
