Attempt CAIIB IT and Digital Banking Module A Quiz & Download PDF

1. In the context of banking IT infrastructure, which of the following best describes ‘Virtualization’ and its primary benefit in a Core Banking environment?

2. Which of the following accurately describes the difference between a ‘compiler’ and an ‘interpreter’ as types of language translators in system software, and which approach is typically used in banking application development?

3. A bank is evaluating its WAN (Wide Area Network) connectivity options for connecting its branches across India. Which of the following WAN technologies would be MOST appropriate for providing a secure, private, dedicated connection between the bank’s headquarters and its regional offices, ensuring guaranteed bandwidth and low latency for CBS transactions?

4. In the TCP/IP protocol suite, which layer is responsible for logical addressing (IP addressing), routing packets across multiple networks, and determining the best path for data delivery? Also identify the primary protocol operating at this layer.

5. Open-Source Software (OSS) is increasingly adopted by banks for various applications. Which of the following statements CORRECTLY describes Open-Source Software and its implications for banking institutions?

6. A bank’s IT team is designing network architecture for its internet banking platform. They need to implement a ‘DMZ’ (Demilitarized Zone). What is the purpose of a DMZ in network architecture and how does it protect the bank’s internal network?

7. In the context of data processing methods, which of the following correctly distinguishes between ‘Batch Processing’ and ‘Real-Time (Online) Processing’ and provides an appropriate banking example for each?

8. The TCP (Transmission Control Protocol) provides reliable, connection-oriented communication. Which of the following accurately describes TCP’s ‘three-way handshake’ mechanism and its relevance to banking applications?

9. What is the role of ‘DNS (Domain Name System)’ in internet banking, and what is a ‘DNS Poisoning (Cache Poisoning)’ attack? How can banks mitigate this risk?

10. In computing, ‘RAM (Random Access Memory)’ and ‘ROM (Read-Only Memory)’ serve distinct functions. Which of the following correctly describes these components and their relevance in a banking ATM system?

11. Which of the following correctly explains ‘IP addressing’ including the difference between IPv4 and IPv6, and why IPv6 adoption is significant for banking infrastructure and the broader internet ecosystem?

12. What is ‘Cloud Computing’ in the banking context? Which deployment model is most commonly adopted by Indian banks for regulatory compliance, and what are the key concerns outlined by RBI regarding cloud adoption?

13. In networking, what is the ‘OSI (Open Systems Interconnection) model’? A customer using internet banking sends a fund transfer request. Starting from the user’s browser, arrange the following events in the correct order according to OSI layers (top-down at sender): HTTP request formation → TCP segmentation → IP packet creation → Frame creation with MAC address → Physical bit transmission.

14. What is ‘Middleware’ in the context of banking IT architecture, and why is it critical in a multi-channel banking environment (branches + ATM + internet banking + mobile banking)?

15. A bank is implementing a ‘Firewall’ for its network security. Which of the following correctly describes the types of firewalls and identifies the most appropriate type for a bank’s internet banking infrastructure handling stateful HTTP/HTTPS traffic?

16. What is ‘SDLC (Software Development Life Cycle)’ and which SDLC model is best suited for developing a critical banking application module where requirements are well-defined upfront, regulatory approval is needed at each phase, and the cost of post-deployment defects is very high?

17. In the context of data communications, what is ‘bandwidth’ and how does it differ from ‘throughput’ and ‘latency’? How do these metrics impact a bank’s CBS performance for end-of-day batch processing?

18. What is the function of a ‘Router’ in a banking network, and how does it differ from a ‘Switch’ and a ‘Hub’? Which device would a bank use to connect its branch LAN to the bank’s MPLS WAN?

19. What is ‘HTTPS (HyperText Transfer Protocol Secure)’ and how does it protect internet banking customers? What role does a ‘Digital Certificate’ issued by a Certificate Authority (CA) play in HTTPS?

20. In IT strategic planning for banks, what is ‘Total Cost of Ownership (TCO)’ and how does it differ from initial procurement cost? A bank is choosing between an on-premise CBS and a SaaS-based CBS — which cost elements should be included in TCO analysis?