Question 1:
a) Explain the whole process of credit card processing, identifying the various steps and parties comprised.
b) What are the roles of acquiring bank and the issuing bank in the credit card payment system?
c) Outline the major differences between a credit card and a charge card.
d) What is money laundering and how is money laundered?
e) E-money or e-cash is a generic name given to the concept of currency that is digitally signed by an issuing institution via a private encryption key and is transmitted to an individual. Describe how e-money works?
f) What are the benefits of using e-money over a credit card?
Question 2:
a) Outline the concept of the Real Time Gross Settlement (RTGS) system in Mauritius and name the three major system components of the MACSS.
b) Distinguish between ‘Gross Settlement’ and ‘Netting’ giving appropriate examples where essential to support your answer.
c) There are a number of factors which come into play in finding out whether a specific method of e-payment achieves widespread acceptance. Outline any three crucial factors.
d) Describe what a digital signature is and how it works? (Give example to support answer)
Question 3:
a) Outline the major challenges for mobile banking.
b) What are the advantages of an online broker compared to the traditional broker?
c) In brief outline the benefits of e-trading.
d) Describe how does cryptography works?
e) List down three illustrations of popular symmetric key algorithms.
f) Outline the role of a specialist and that of a market maker.