Click to return to BOL home page
Banker Store eCard Exchange Vendor Connect Career Connect Learning Connect Bankers Information Network
Home Compliance Lending Operations Security Marketing Technology/eBanking
Top Stories Bankers' Threads BOL Conferences CrimeDex Em@il Education FREE Briefings Record Retention

   

















    Site Map

    Our Sponsors

    Home




eBanking Quiz

How much do you know about eBanking?
This is a self-grading quiz to test your knowledge of eBanking matters. Answers are entered by clicking the button corresponding to your selection. The examination is scored by clicking 'Score My Answers' at the end of the list of questionsquestions. Correct answers and explanations are found through hyperlinks at the bottom of the page. You may bypass taking the examination and simply view the answers by clicking the answer hyperlinks. (But then you'd miss all the fun!)


Question # 1 (True/False) Under the E-Sign Act, a bank may serve as a Certificate Authority.

    A) True
    B) False

Question # 2 (True/False) . A bank can host a virtual mall containing a collection of links to third party web sites which offer products to bank customers as long as the products being offered are solely financial-related products.

    A) True
    B) False

Question # 3 (True/False) A national bank may enter into an electronic service agreement with the state agency responsible for motor vehicle registration in which the bank provides the electronic services to enable the agency to process motor vehicle title applications and related payments over the Internet.

    A) True
    B) False

Question # 4 (True/False) A national bank can design, create and host a commercial Web site for retail customers that will enable a retailer to receive and process credit card orders over the Internet.

    A) True
    B) False

Question # 5 (Multiple Choice) Your bank has decided to offer ebanking services to its customers. The vendor that has been hired to create your Web site has just notified you that a third party has registered a domain name that is identical to the name of the bank and will sell it to the bank for $10,000. The vendor recommends that you purchase the name so your customers will not be confused. Should you:

    A) accept the offer
    B) reject the offer and attempt to negotiate a lower price
    C) ignore the offer and notify your customers of your real web site name
    D) contact your attorney

Question # 6 (True/False) The OCC has authorized a national bank to operate a web site that provides consumers and dealers with detailed information on used cars for sale - a virtual used car lot.

    A) True
    B) False

Question # 7 (True/False) If a national bank that utilizes an electronic image storage and retrieval system does not utilize the system to its fullest capacity, the bank may market the excess capacity and imaging services to third parties.

    A) True
    B) False

Question # 8 (True/False) All of the Internet banks must be affiliated with or a subsidiary of a financial institution that offers traditional banking services. It is not permissible for the Internet bank to only offer its financial products over the Internet. An Internet bank must have at least one traditional bank office.

    A) True
    B) False

Question # 9 (True/False) National Banknet is a free Web site developed by bankers for bankers which contains information of interest the banking industry.

    A) True
    B) False

Question # 10 (True/False) A national bank can acquire a software company providing the bank only sells the software as part of a bundle of Internet Web hosting services which is offered to all bank customers.

    A) True
    B) False

Question # 11 (True/False) Nearly 40% of all U.S. banks now have some form of Web site through which they can communicate with their customers and almost 15% have sites that allow customers to conduct banking transactions.

    A) True
    B) False

Correct Answers

1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11

Question # 1 (True/False) Under the E-Sign Act, a bank may serve as a Certificate Authority.

Answer: True

The primary role of a Certificate Authority is to verify and issue digital certificates, which are used to verify digital signatures. The FDIC has confirmed a bank may provide a certificate authorization service for its customers but noted the process will require technical skills and will have some liabilities. BACK

Question # 2 (True/False) . A bank can host a virtual mall containing a collection of links to third party web sites which offer products to bank customers as long as the products being offered are solely financial-related products.

Answer: False

A national bank can host and operate a virtual mall containing a range of both financial and non-financial products which allows a bank customer to shop for the products via links to the vendors sites. See OCC Interpretive Letter No. 875. BACK

Question # 3 (True/False) A national bank may enter into an electronic service agreement with the state agency responsible for motor vehicle registration in which the bank provides the electronic services to enable the agency to process motor vehicle title applications and related payments over the Internet.

Answer: True

The OCC issued Conditional Approval No. 361 to an operating subsidiary application containing such a proposal. The approval was conditional on the filing of proper applications to provide the service. BACK

Question # 4 (True/False) A national bank can design, create and host a commercial Web site for retail customers that will enable a retailer to receive and process credit card orders over the Internet.

Answer: True

The OCC issued Interpretive Letters No. 856 and 875 that contain legal opinions that a national bank could provide these types of Web services for its customers. In addition the bank could store the retailer's data and provide associated payments and deposit services resulting from the web-based transactions. BACK

Question # 5 (Multiple Choice) Your bank has decided to offer ebanking services to its customers. The vendor that has been hired to create your Web site has just notified you that a third party has registered a domain name that is identical to the name of the bank and will sell it to the bank for $10,000. The vendor recommends that you purchase the name so your customers will not be confused. Should you:

Answer: (D) contact your attorney

Contact your attorney. It's possible your bank may have legal recourse under the Anti-Cybersquatting Consumer Protection Act 15 U.S.C. 1125 which prohibits registering or using a domain name that is confusingly similar to another name, with an intent for profit. Disputes over domain names can also be resolved using arbitration. A Uniform Domain Name Dispute Resolution Policy has been developed by the Internet Corporation for Assigned Names and Numbers (ICANN) to deal with conflicts over domain name ownership. BACK

Question # 6 (True/False) The OCC has authorized a national bank to operate a web site that provides consumers and dealers with detailed information on used cars for sale - a virtual used car lot.

Answer: True

The OCC approved such an application that is detailed in Corporate Decision 97-60. The bank was authorized to also conduct electronic auctions for the dealers and to offer other bank products such as loans and leases. BACK

Question # 7 (True/False) If a national bank that utilizes an electronic image storage and retrieval system does not utilize the system to its fullest capacity, the bank may market the excess capacity and imaging services to third parties.

Answer: True

The OCC stated in Interpretative Letter 888 that a national bank can market the excess capacity to third parties for the imaging of financial and non-financial documents. BACK

Question # 8 (True/False) All of the Internet banks must be affiliated with or a subsidiary of a financial institution that offers traditional banking services. It is not permissible for the Internet bank to only offer its financial products over the Internet. An Internet bank must have at least one traditional bank office.

Answer: False

The OCC has approved the charter applications of proposed national banks that have no traditional bank offices and only offer their products over the Internet. An Internet bank may be an affiliate or subsidiary of another financial institution but that relationship is not required. BACK

Question # 9 (True/False) National Banknet is a free Web site developed by bankers for bankers which contains information of interest the banking industry.

Answer: False

National Banknet is an exclusive Web service for national banks operated by the Office of the Comptroller of the Currency. The OCC site allows the private exchange of information between the agency and the banks it charters and provides products to assist these banks. BankersOnline.com is the free Web site developed by bankers for bankers. ;-) BACK

Question # 10 (True/False) A national bank can acquire a software company providing the bank only sells the software as part of a bundle of Internet Web hosting services which is offered to all bank customers.

Answer: False

The OCC has issued a Corporate Decision (2000-1) which allows a national bank to acquire a software company but the software can only be sold to merchant customers as part of an Internet Web hosting service. BACK

Question # 11 (True/False) Nearly 40% of all U.S. banks now have some form of Web site through which they can communicate with their customers and almost 15% have sites that allow customers to conduct banking transactions.

Answer: True

As quoted by Federal Reserve Board Vice Chairman Roger W. Ferguson, Jr. in a May 4, 2000 speech to the 26th Annual Conference on Bank Structure and Competition, Chicago, Illinois. BACK

 This quiz was written 11/27/00.

Copyright, 2000, BankersOnline. All rights reserved.



Email This Article! Discuss NOW!
Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking
BOL Archives    Privacy Policy    Important Disclaimer   Recommend This Site !   Contact Us


BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.