Money Transfer Industry Quiz: Entry Level
This money transfer industry quiz is the starting point of the series. It is written for anyone new to remittances: a founder sketching a money transfer business, an analyst joining a payments team, or somebody who simply wants to know what happens between "send" and "received".
Pick an answer for each question. A correct answer shows why it is right; a wrong one is marked incorrect and you can try again. Your score counts first attempts only.
On a Scale of 1 to 10, How Well Versed Are You About the Money Transfer Industry?
00 / 10 answeredScore 0
Question 1. In a typical person-to-person international money transfer, who is the "sender"?
Question 2. In the money transfer business, who is usually called the "beneficiary" or "recipient"?
Question 3. What is a "corridor" in the remittance industry?
Question 4. What does "payout" usually mean in a person-to-person money transfer?
Question 5. What is an MTO in the remittance business?
Question 6. What is a common reason a money transfer company performs KYC on customers?
Question 7. What is the difference between the exchange rate and the transfer fee?
Question 8. What is cash pickup in the remittance business?
Question 9. Why does a money transfer company need transaction monitoring?
Question 10. What is settlement in the money transfer industry?
What the money transfer industry quiz covers
The parties to a transfer: sender, beneficiary, money transfer operator (MTO) and payout agent
Corridors, payout methods and cash pickup
The difference between the exchange rate and the transfer fee
Why KYC and transaction monitoring exist
What settlement means behind a completed transfer
How to read your score
Your score is the number of questions you answered correctly on the first try, out of 10.
9 or 10: You know this material well. Try a harder quiz in the series, or the FX arithmetic one.
6 to 8: A solid working knowledge with a gap or two. Re-read the explanations for the questions you missed.
3 to 5: The basics are there. The explanations are written to fill exactly these gaps, so take the quiz again tomorrow.
0 to 2: Start with the entry-level quiz and the glossary, then come back to this one.
For the primary source behind several of these questions, see FinCEN: definition of a money services business.
More quizzes and further reading
Ten more quizzes in the series, from entry level to FX arithmetic:
Further reading on this site: