IGCSE CS 5.2 Digital Currency and Cryptocurrency

What is the main topic of the text?

• Digital Currency and Cryptocurrency

• Literature Classics

• History of Mathematics

• World Geography

What was the initial system used for exchanging goods before the concept of money?

• Banking System

• Cryptocurrency

• Bartering

• Credit Cards

When did people start using metals, animals, and seashells as a common value for goods?

• 1000 AD

• 2000 BC

• 1500 BC

• 500 BC

What was the first metal used to make coins by the Lydian people?

• Gold

• Bronze

• Iron

• Silver

In which century did the paper money system come about?

• 10th Century

• 15th Century

• 20th Century

• 17th Century

What is the main advantage of using credit cards for transactions?

• Higher interest rates

• No need for a bank account

• No need to carry physical money

• Limited usage online

What is the meaning of 'fiat' in the context of currency?

• Digital Currency

• Physical Currency

• Cryptocurrency

• Government-backed Currency

What is the primary difference between digital currency and conventional fiat currency?

• Digital currency is backed by gold reserves, fiat currency is backed by central banks

• Digital currency exists purely in digital format, fiat currency can be held physically

• Digital currency is regulated by governments, fiat currency is decentralized

• Digital currency is physical, fiat currency is electronic

What is the purpose of central banking digital currencies (CBDCs)?

• To introduce decentralization in digital currency

• To maintain confidentiality and security in digital transactions

• To regulate cryptocurrency transactions

• To replace traditional fiat currencies

What technology does cryptocurrency use to track transactions?

• Blockchain

• Artificial Intelligence

• Quantum Computing

• Virtual Reality