What are Smart Cards primarily designed to do?

Prepare for the Information Systems and Controls (ISC) CPA Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

Smart cards are primarily designed to process data and execute activities. These cards have embedded microprocessors that can perform various functions beyond simply storing information. They are commonly used in applications such as secure transactions, access control, and identity verification, where they can run scripts and manage data securely. This capacity to execute activities allows smart cards to be interactive and process information in real-time, making them highly versatile in secure financial transactions, electronic IDs, and mobile communications.

The other options focus more on different functionalities: storing identification information is a part of what smart cards do, but it does not encompass the full range of their capabilities. GPS navigation and Wi-Fi connectivity do not apply to smart cards, as these functions are related to other technologies, such as smartphones or dedicated GPS devices. Therefore, the primary design purpose of smart cards is centered around their ability to process data and facilitate various secure activities.

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