E - Commerce CH.2

E-Money
Unit 2
Multiple Choice Questions with Answer Key
1. Which of the following is an Internet-based company that makes

it easy for one person to pay another over the Internet?
a. electronic check
b. electronic bill presentment and payment
c. conversion rates
d. financial cybermediary
Answer: d
2. Which of the following is a method of transferring money from

one persons account to another?
a. electronic check
b. credit card
c. e-transfer
d. none of the above
Answer: a
3. An electronic check is one form of what?
a. e-commerce
b. online banking
c. e-cash
d. check
Answer: c
4. If you need to transfer money to another person via the internet,
which of the following methods could you use?
a. financial cybermediary
b. electronic check
c. electronic bill presentment and payment
d. all of the above
Answer: d
5. Which of the following permits the transmission of a bill, along

with payment of that bill, to be conducted over the Internet?
a. financial cybermediary
b. electronic check
c. electronic bill presentment and payment
d. all of the above
Answer: c
6. A combination of software and information designed to provide

security and information for payment is called a what?
a. digital wallet
b. pop up ad
c. shopping cart
d. encryption
Answer: a
7. What is the name for direct computer-to-computer transfer of
transaction information contained in standard business documents?
a. internet commerce
b. e-commerce
c. transaction information transfer
d. electronic data interchange
Answer: d
8. Which of the following is used in B2B to pay for purchases?
a. e-commerce
b. financial electronic data interchange
c. electronic data exchange
d. electronic checks
Answer: b
9. Public key encryption uses multiple keys. One key is used to

encrypt data, while another is used to decrypt data. The key used to
encrypt data is called the _____ key, while the key used to decrypt
data is called the _____ key.
a. encryption, decryption
b. private, public
c. encryption, public
d. public, private
Answer: d
10. For carrying out B2B e-Commerce the following infrastructure is
essential:
(i) World Wide Web 

(ii) Corporate network 
(iii) Electronic Data Interchange standards 
(iv) Secure Payment Services 
(v)Secure electronic communication link connecting businesses
a. i, ii, iii 
b. ii, iii, iv 
c. ii, iii, iv, v 
d. i, ii, iii, iv, v
Answer: c
11. In B2B e-Commerce 
(i) Co-operating Business should give an EDI standard to be used 

(ii) Programs must be developed to translate EDI forms to a form
accepted by application program 
(iii) Method of transmitting/receiving data should be mutually agreed 
(iv) It is essential to use internet
a. i, ii 
b. i, ii, iii 
c. i, ii, iii, iv 
d. ii, iii, iv
Answer: b
12. EDI standard
a. is not easily available 

b. defines several hundred transaction sets for various business
forms 
c. is not popular 
d. defines only a transmission protocol
Answer: b
13. By symmetric key encryption we mean
a. one private key is used for both encryption and decryption 

b. private and public key used are symmetric 
c. only public keys are used for encryption 
d. only symmetric key is used for encryption
Answer: a
14. In Electronic cash payment
a. Debit card payment system is used 

b. Customer buys several electronic coins which are digitally signed
by Coin issuing bank 
c. credit card payment system is used
d. None of the above 
Answer: b
15. A computer ________ is a malicious code which self-replicates
by copying itself to other programs.
a. program
b. virus
c. application
d. worm
Answer: b
16. Which of the below-mentioned reasons do not satisfy the

reason why people create a computer virus?
a. Research purpose
b. Pranks
c. Identity theft
d. Protection
Answer: d
17. _____________ is also known as cavity virus.
a. Non-resident virus
b. Overwrite Virus
c. Polymorphic Virus
d. Space-filler Virus
Answer: d
18. ____________ deletes all the files that it infects.
b. Overwrite Virus
d. Multipartite Virus
Answer: b
19. ______________ are difficult to identify as they keep on

changing their type and signature.
b. Boot Sector Virus
Answer: c
20. ______________ infects the executables as well as the boot

sectors.
Answer: d
21. Direct Action Virus is also known as ___________
Answer: a
22. ________________ gets installed & stays hidden in your

computer’s memory. It stays involved to the specific type of files
which it infects.
a. Boot Sector Virus

b. Direct Action Virus
Answer: b
23. _______________ infects the master boot record and it is

challenging and a complex task to remove this virus.
a. Boot Sector Virus

b. Polymorphic
c. Multipartite
d. Trojans
Answer: a
24. Which of them is not an ideal way of spreading the virus?
a. Infected website
b. Emails
c. Official Antivirus CDs
d. USBs
Answer: c
25. The virus that spread in application software is called as
a. Boot virus
b. Macro virus
c. File virus
d. Anti virus
Answer: b
26. What is the virus that spread in computer?
a. It is hardware
b. It is system software
c. It is a computer program
d. It is a windows tool
Answer: c
27. ________________ are unnecessary software which infiltrates
user’s system, spy on user’s activities, stealing internet usage data
& sensitive information of that user.
a. Shareware
b. Spyware
c. Ransomware
d. Freeware
Answer: b
28. They spy on our digital habits and spy on which data is more
sensitive or useful for its creator. Who are ‘they’ referring to?
a. Shareware
b. Ransomware
c. Spyware
d. Freeware
Answer: c
29. Spyware collects user’s personal data & spreads it

to______________ data-firms, or its creator.
a. advertisers
b. dark-market
c. antivirus company
d. share market
Answer: a
30. Which of the following activity is not done by spyware?
a. sell internet usage data

b. capture credit card details
c. user’s personal identity
d. steal signature of the different virus
Answer: d
31. Which of the following activity is not done by spyware?
a. Monitors your internet activity

b. Track user’s login details and passwords
c. Uninstalls your mobile browser
d. Spy on sensitive information
Answer: c
32. If you’ve accidentally clicked any pop-up which seems

malicious, it is recommended to take steps to remove it and
proactively change your ________ and delete browsing activities
from web browser.
a. passwords
b. email ID
c. name
d. address
Answer: a
33. By security in e-Commerce we mean  
(i) Protecting an organisation’s data resource from unauthorised

access
(ii)Preventing disasters from happening 
(iii) Authenticating messages received by an organisation 
(iv) Protecting messages sent on the internet from being read and
understood by unauthorised persons/organisations
a. I and ii
b. ii and iii
c. iii and iv
d. i, iii and iv  
Answer: d
34. Which of the following is an internet-based company that makes

it easy for one person to pay another over thee internet:
a. Electronic Check
b. Electronic bill presentment and payment
c. Conversion rates
d. Financial cybermediary
Answer: d
35. Digital Cash has following characteristic
a. Anonymity
b. Security
c. Confidentiality
d. All of Above
Answer: d

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E-Money

1. Which of the following is an Internet-based company that makes

2. Which of the following is a method of transferring money from

3. An electronic check is one form of what?

5. Which of the following permits the transmission of a bill, along

6. A combination of software and information designed to provide

8. Which of the following is used in B2B to pay for purchases?

9. Public key encryption uses multiple keys. One key is used to

(i) World Wide Web

11. In B2B e-Commerce

(i) Co-operating Business should give an EDI standard to be used

a. is not easily available

13. By symmetric key encryption we mean

a. one private key is used for both encryption and decryption

14. In Electronic cash payment

a. Debit card payment system is used

16. Which of the below-mentioned reasons do not satisfy the

17. _____________ is also known as cavity virus.

19. ______________ are difficult to identify as they keep on

20. ______________ infects the executables as well as the boot

22. ________________ gets installed & stays hidden in your

a. Boot Sector Virus

23. _______________ infects the master boot record and it is

a. Boot Sector Virus

25. The virus that spread in application software is called as

26. What is the virus that spread in computer?

29. Spyware collects user’s personal data & spreads it

a. sell internet usage data

31. Which of the following activity is not done by spyware?

a. Monitors your internet activity

32. If you’ve accidentally clicked any pop-up which seems

(i) Protecting an organisation’s data resource from unauthorised

34. Which of the following is an internet-based company that makes

35. Digital Cash has following characteristic

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(i) World Wide Web 

11. In B2B e-Commerce 

(i) Co-operating Business should give an EDI standard to be used 

a. is not easily available 

a. one private key is used for both encryption and decryption 

a. Debit card payment system is used 