Digital currency

What is digital currency?

• Currency that exists only in electronic form
  

• Physical currency like coins and banknotes

• Currency that can only be used online

• A type of cryptocurrency

Which of the following is a characteristic of cryptocurrency?

• It is regulated by central banks.

• It can be physically printed as cash.

• It uses cryptography for security.

• It is always backed by gold or silver.

What does the term "blockchain" refer to?

• A physical chain that holds currency.

• A centralized database managed by banks.

• A decentralized ledger of transactions stored across multiple computers.

• A network of computers that only track digital currency.

What is the primary purpose of a blockchain?

• To allow for the printing of money.

• To secure and verify transactions without the need for intermediaries.

• To keep all financial records in a centralized location.

• To convert physical currency into digital format.

Which of the following statements about digital currency is TRUE?

• Digital currency is always anonymous.

• Digital currency can be transferred between accounts electronically.

• Digital currency has no form of government regulation.

• Digital currency can only be used for online shopping.

Which of the following is a major benefit of using blockchain technology?

• It eliminates the need for all forms of currency.

• It allows transactions to be easily changed after they are recorded.

• It increases the transparency and security of transactions.

• It centralizes control to a single authority.