Quiz on Secure Electronic Transaction (SET) Protocol

Introduction to SET Protocol Answers 1. What is one major drawback of the SET protocol? A. It requires significant infrastructure investment in software and hardware. B. It offers fewer security features compared to earlier protocols. C. It is simpler to implement than SSL. D. It improves transaction speed significantly. Answer: It requires significant infrastructure investment in software and hardware. (A) SET requires substantial investments in software and hardware to implement effectively. 2. How does SET compare to simpler protocols like SSL? A. SET is more complex in its implementation. B. SET is less comprehensive in its security offerings. C. SET requires less infrastructure to implement. D. SET offers a faster transaction speed. Answer: SET is more complex in its implementation. (A) SET's implementation is more complex compared to simpler protocols like SSL. 3. Why has widespread adoption of the SET protocol been difficult? A. Existing regulations prohibit its use. B. SET does not provide any transaction security. C. Lack of interest in secure payment solutions. D. The complexity and cost associated with implementation. Answer: The complexity and cost associated with implementation. (D) The complexity and costs of SET protocol implementation are significant barriers to widespread adoption. 4. In what way do modern techniques utilize SET principles? A. They reduce the overall security provided by SET. B. They integrate SET concepts with contemporary encryption and authentication methods. C. They simplify SET to make it more user-friendly. D. They discard SET principles in favor of new methods. Answer: They integrate SET concepts with contemporary encryption and authentication methods. (B) Modern techniques often combine SET principles with current encryption and authentication methods for enhanced security. 5. What impact does encrypted communication have on transaction speed in SET? A. It has no effect on transaction speed. B. It significantly speeds up transactions. C. It makes transactions unreliable. D. It slightly impacts transaction speed. Answer: It slightly impacts transaction speed. (D) Encrypted communications in SET slightly impact the speed of transactions. 6. What is the primary aim of the SET protocol? A. To facilitate faster online transactions B. To provide secure online financial transactions C. To standardize credit card processing methods D. To eliminate the need for digital signatures Answer: To provide secure online financial transactions (B) The SET protocol is specifically designed to ensure the security of online financial transactions. 7. Which component of SET is responsible for verifying the identities of the parties involved? A. Digital Certificates B. Public Key Infrastructure (PKI) C. Message Authentication Codes (MACs) D. Encryption Algorithms Answer: Digital Certificates (A) Digital Certificates play a crucial role in verifying the identities of the merchant and cardholder. 8. Which security mechanism is used in SET to guarantee the integrity of a transaction? A. Transaction Chaining B. Certificate Authority (CA) C. Digital Signatures D. Public Key Infrastructure (PKI) Answer: Digital Signatures (C) Digital Signatures are essential for ensuring the integrity and authenticity of transactions. 9. What role does the Certificate Authority (CA) play in the SET protocol? A. Issuing credit cards to consumers B. Verifying and issuing digital certificates C. Encrypting transaction data D. Processing transactions for merchants Answer: Verifying and issuing digital certificates (B) The Certificate Authority (CA) is responsible for issuing and verifying digital certificates to establish trust. 10. In the SET transaction flow, what does the cardholder's browser establish with the merchant's server? A. A plain text connection B. A cloud-based connection C. An encrypted connection D. A direct peer-to-peer connection Answer: An encrypted connection (C) The cardholder's browser creates an encrypted connection to enhance security during the transaction. 11. What is one of the primary benefits of using the SET protocol for online transactions? A. Increased transaction fees B. Enhanced security of sensitive information C. Reduced operational complexity D. Elimination of the need for credit cards Answer: Enhanced security of sensitive information (B) One of the key benefits of SET is its ability to provide enhanced security for sensitive information during transactions. 12. Which of the following is NOT a component of SET? A. Message Authentication Codes (MACs) B. Bank Transaction Insurance C. Digital Signatures D. Transaction Chaining Answer: Bank Transaction Insurance (B) Bank Transaction Insurance is not a component involved in the SET protocol. 13. The use of which element helps to track transactions and maintain an audit trail in SET? A. Public Key Infrastructure (PKI) B. Transaction Chaining and Logging C. Digital Certificates D. Certificate Authority (CA) Answer: Transaction Chaining and Logging (B) Transaction Chaining and Logging are essential for tracking transactions and maintaining security accountability.