CERTIFIED INFORMATION SYSTEM BANKER Practice Exam
1. Which banking system is primarily responsible for handling day-to-day transactions and
customer accounts?
A) ATM system
B) Core banking system
C) Mobile banking system
D) Back-office system
Answer: B
Explanation: The core banking system is the central platform that manages daily transactions,
customer accounts, deposits, and withdrawals.
2. What is the main goal of confidentiality in information security?
A) To ensure data is available
B) To ensure data is correct
C) To restrict data access
D) To maintain system uptime
Answer: C
Explanation: Confidentiality ensures that sensitive data is accessed only by authorized users,
protecting it from unauthorized disclosure.
3. Which risk type in banking typically refers to the risk of loss due to failures in internal
processes?
A) Market risk
B) Credit risk
C) Operational risk
D) Liquidity risk
Answer: C
Explanation: Operational risk stems from inadequate or failed internal processes, people, and
systems, or external events.
4. What is one of the main benefits of adopting off-the-shelf banking software solutions?
A) High level of customization
B) Faster implementation
C) Complete uniqueness
D) No vendor support required
Answer: B
Explanation: Off-the-shelf solutions are generally quicker to implement compared to customized
systems.
5. Which term refers to the process of ensuring data accuracy and consistency over its
lifecycle in banking?
A) Data encryption
B) Data analytics
,C) Data governance
D) Data replication
Answer: C
Explanation: Data governance involves establishing policies and procedures that ensure data
quality and consistency throughout its lifecycle.
6. What is a common characteristic of digital wallets in digital banking?
A) They require physical bank visits
B) They store customer data on local servers only
C) They enable cashless transactions
D) They are used solely for credit card payments
Answer: C
Explanation: Digital wallets enable users to make cashless transactions by storing payment
information securely on a mobile device.
7. In the context of banking infrastructure, what does high availability mean?
A) Frequent system upgrades
B) Minimal downtime
C) Low cost
D) Extended offline periods
Answer: B
Explanation: High availability refers to systems that are continuously operational with minimal
downtime, ensuring reliable service.
8. Which electronic payment system is known for enabling cross-border transactions?
A) ACH
B) SWIFT
C) Card payments
D) Real-time payments
Answer: B
Explanation: SWIFT (Society for Worldwide Interbank Financial Telecommunication) is widely
used for secure cross-border payments and messaging.
9. What is the primary purpose of IT governance in banking?
A) To manage customer relationships
B) To align IT strategy with business objectives
C) To reduce the number of employees
D) To eliminate cybersecurity risks completely
Answer: B
Explanation: IT governance ensures that IT investments and strategies align with the overall
business objectives of the bank.
10. Which project management methodology is characterized by iterative cycles and
continuous feedback?
A) Waterfall
B) Agile
,C) Hybrid
D) Critical Path
Answer: B
Explanation: Agile project management is iterative, allowing for continuous feedback and
adjustment throughout the project lifecycle.
11. What is the first step in developing a business continuity plan (BCP) for banking
systems?
A) Disaster recovery testing
B) Identifying critical business functions
C) System upgrade
D) Employee training
Answer: B
Explanation: Identifying critical business functions is the first step, as it determines which
processes must be maintained during a disruption.
12. Which type of fraud involves unauthorized access to funds by impersonating a
legitimate user?
A) Wire fraud
B) Credit card fraud
C) Identity theft
D) Check fraud
Answer: C
Explanation: Identity theft involves fraudsters impersonating a legitimate user to gain access to
funds or personal information.
13. Which regulation primarily focuses on data privacy and protection of personal data in
Europe?
A) Basel III
B) Dodd-Frank Act
C) GDPR
D) SOX
Answer: C
Explanation: The General Data Protection Regulation (GDPR) is designed to protect personal
data and privacy in the European Union.
14. What is a key challenge of adopting cloud computing in banking?
A) Increased physical infrastructure
B) Reduced scalability
C) Data security and regulatory compliance
D) Lack of mobile access
Answer: C
Explanation: Cloud computing presents challenges such as data security and ensuring
compliance with regulatory requirements.
, 15. Which ethical issue in banking IT focuses on obtaining customer consent for data
usage?
A) System uptime
B) Data privacy
C) Network latency
D) Software licensing
Answer: B
Explanation: Ethical concerns in data privacy revolve around ensuring customers give informed
consent for the use of their data.
16. In banking information systems, what does the acronym ATM stand for?
A) Automated Teller Machine
B) Advanced Transaction Method
C) Automated Transfer Module
D) Authorized Teller Mechanism
Answer: A
Explanation: ATM stands for Automated Teller Machine, a common banking system for cash
withdrawals and deposits.
17. What technique is commonly used to protect data during transmission in banking
systems?
A) Data replication
B) Encryption
C) Backup scheduling
D) Load balancing
Answer: B
Explanation: Encryption is used to secure data during transmission, ensuring confidentiality and
integrity.
18. Which framework is specifically designed for information security management?
A) COBIT
B) ISO 27001
C) ITIL
D) ISO 20000
Answer: B
Explanation: ISO 27001 provides specifications for an information security management system
(ISMS).
19. Which type of risk in banking relates to fluctuations in interest rates and market
conditions?
A) Operational risk
B) Credit risk
C) Market risk
D) Liquidity risk
Answer: C
1. Which banking system is primarily responsible for handling day-to-day transactions and
customer accounts?
A) ATM system
B) Core banking system
C) Mobile banking system
D) Back-office system
Answer: B
Explanation: The core banking system is the central platform that manages daily transactions,
customer accounts, deposits, and withdrawals.
2. What is the main goal of confidentiality in information security?
A) To ensure data is available
B) To ensure data is correct
C) To restrict data access
D) To maintain system uptime
Answer: C
Explanation: Confidentiality ensures that sensitive data is accessed only by authorized users,
protecting it from unauthorized disclosure.
3. Which risk type in banking typically refers to the risk of loss due to failures in internal
processes?
A) Market risk
B) Credit risk
C) Operational risk
D) Liquidity risk
Answer: C
Explanation: Operational risk stems from inadequate or failed internal processes, people, and
systems, or external events.
4. What is one of the main benefits of adopting off-the-shelf banking software solutions?
A) High level of customization
B) Faster implementation
C) Complete uniqueness
D) No vendor support required
Answer: B
Explanation: Off-the-shelf solutions are generally quicker to implement compared to customized
systems.
5. Which term refers to the process of ensuring data accuracy and consistency over its
lifecycle in banking?
A) Data encryption
B) Data analytics
,C) Data governance
D) Data replication
Answer: C
Explanation: Data governance involves establishing policies and procedures that ensure data
quality and consistency throughout its lifecycle.
6. What is a common characteristic of digital wallets in digital banking?
A) They require physical bank visits
B) They store customer data on local servers only
C) They enable cashless transactions
D) They are used solely for credit card payments
Answer: C
Explanation: Digital wallets enable users to make cashless transactions by storing payment
information securely on a mobile device.
7. In the context of banking infrastructure, what does high availability mean?
A) Frequent system upgrades
B) Minimal downtime
C) Low cost
D) Extended offline periods
Answer: B
Explanation: High availability refers to systems that are continuously operational with minimal
downtime, ensuring reliable service.
8. Which electronic payment system is known for enabling cross-border transactions?
A) ACH
B) SWIFT
C) Card payments
D) Real-time payments
Answer: B
Explanation: SWIFT (Society for Worldwide Interbank Financial Telecommunication) is widely
used for secure cross-border payments and messaging.
9. What is the primary purpose of IT governance in banking?
A) To manage customer relationships
B) To align IT strategy with business objectives
C) To reduce the number of employees
D) To eliminate cybersecurity risks completely
Answer: B
Explanation: IT governance ensures that IT investments and strategies align with the overall
business objectives of the bank.
10. Which project management methodology is characterized by iterative cycles and
continuous feedback?
A) Waterfall
B) Agile
,C) Hybrid
D) Critical Path
Answer: B
Explanation: Agile project management is iterative, allowing for continuous feedback and
adjustment throughout the project lifecycle.
11. What is the first step in developing a business continuity plan (BCP) for banking
systems?
A) Disaster recovery testing
B) Identifying critical business functions
C) System upgrade
D) Employee training
Answer: B
Explanation: Identifying critical business functions is the first step, as it determines which
processes must be maintained during a disruption.
12. Which type of fraud involves unauthorized access to funds by impersonating a
legitimate user?
A) Wire fraud
B) Credit card fraud
C) Identity theft
D) Check fraud
Answer: C
Explanation: Identity theft involves fraudsters impersonating a legitimate user to gain access to
funds or personal information.
13. Which regulation primarily focuses on data privacy and protection of personal data in
Europe?
A) Basel III
B) Dodd-Frank Act
C) GDPR
D) SOX
Answer: C
Explanation: The General Data Protection Regulation (GDPR) is designed to protect personal
data and privacy in the European Union.
14. What is a key challenge of adopting cloud computing in banking?
A) Increased physical infrastructure
B) Reduced scalability
C) Data security and regulatory compliance
D) Lack of mobile access
Answer: C
Explanation: Cloud computing presents challenges such as data security and ensuring
compliance with regulatory requirements.
, 15. Which ethical issue in banking IT focuses on obtaining customer consent for data
usage?
A) System uptime
B) Data privacy
C) Network latency
D) Software licensing
Answer: B
Explanation: Ethical concerns in data privacy revolve around ensuring customers give informed
consent for the use of their data.
16. In banking information systems, what does the acronym ATM stand for?
A) Automated Teller Machine
B) Advanced Transaction Method
C) Automated Transfer Module
D) Authorized Teller Mechanism
Answer: A
Explanation: ATM stands for Automated Teller Machine, a common banking system for cash
withdrawals and deposits.
17. What technique is commonly used to protect data during transmission in banking
systems?
A) Data replication
B) Encryption
C) Backup scheduling
D) Load balancing
Answer: B
Explanation: Encryption is used to secure data during transmission, ensuring confidentiality and
integrity.
18. Which framework is specifically designed for information security management?
A) COBIT
B) ISO 27001
C) ITIL
D) ISO 20000
Answer: B
Explanation: ISO 27001 provides specifications for an information security management system
(ISMS).
19. Which type of risk in banking relates to fluctuations in interest rates and market
conditions?
A) Operational risk
B) Credit risk
C) Market risk
D) Liquidity risk
Answer: C
