JAIIB · PPB

Data Communication System

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What is a data communication system in the context of banking?

A

A data communication system is a set of hardware, software, and transmission media that enables electronic transfer of data between computers and devices across locations, forming the backbone of modern banking operations.

Q

What is the role of a repeater in extending a banking network?

A

Repeater amplifies and regenerates weak signals over long distances.

Q

What does the term 'bandwidth' refer to in data communication?

A

Bandwidth refers to the maximum rate of data transfer across a communication channel, typically measured in bits per second (bps), and determines how much data can be transmitted in a given time period.

Q

What is half-duplex communication in a banking data network?

A

Data flows in only one direction at a time between two points.

Q

What is the difference between analog and digital signals in data communication?

A

Analog signals are continuous waveforms that vary in amplitude and frequency, while digital signals represent data as discrete binary values (0s and 1s); most modern banking networks use digital transmission for accuracy and speed.

Q

What is the function of a gateway in a bank's network?

A

Gateway connects networks using different protocols or architectures.

Q

What is a modem and what role does it play in banking communication?

A

A modem (modulator-demodulator) converts digital signals from computers into analog signals for transmission over telephone lines and vice versa, enabling banks to connect legacy systems over PSTN networks.

Q

What is a bridge and how does it differ from a router in banking networks?

A

Bridge connects two LAN segments; router connects different networks.

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