Exploring Digital Economy Development

What is the role of money in the digital economy?

• Money acts as a medium of exchange, enabling transactions and supporting digital currencies in the digital economy.

• Money is only a physical entity and does not exist in digital transactions.

• Money has no significant role in the digital economy.

• Money is primarily used for saving and investment in the digital economy.

Name two types of financial institutions involved in the digital economy.

• Credit unions

• Online banks, Payment processors

• Insurance companies

• Investment banks

How has digital currency changed traditional banking?

• Digital currency has eliminated all banking fees.

• Digital currency has made traditional banks obsolete.

• Digital currency has no impact on banking practices.

• Digital currency has increased competition, reduced costs, and introduced new technologies in traditional banking.

What are the advantages of using digital payment systems?

• Higher fees for transactions

• Advantages of using digital payment systems include convenience, speed, security, and reduced transaction costs.

• Increased cash handling

• Longer transaction times

Describe the concept of cryptocurrency.

• Cryptocurrency is a decentralized digital currency secured by cryptography, operating on blockchain technology.

• Cryptocurrency is a physical form of money used for transactions.

• Cryptocurrency is a government-issued currency that is regulated by central banks.

• Cryptocurrency is a type of stock that can be traded on the stock market.

What is a digital wallet and how does it work?

• A digital wallet is a software application for storing and managing payment information securely, enabling transactions via mobile devices or computers.

• A digital wallet is a physical card used for making payments.

• A digital wallet is a type of cryptocurrency that stores digital assets.

• A digital wallet is a bank account that requires a minimum balance to operate.

How do peer-to-peer payment systems function?

• They require users to have a physical card for payments.

• They function solely through cash transactions.

• They only allow transactions through bank intermediaries.

• Peer-to-peer payment systems function by enabling direct transfers of funds between users through a digital platform.

What are the main features of modern payment systems?

• High transaction fees

• Main features of modern payment systems include speed, security, convenience, support for multiple payment methods, encryption, tokenization, real-time tracking, and fraud detection.

• Limited payment methods

• Delayed processing times

How has e-commerce influenced consumer behavior?

• E-commerce has eliminated the need for customer reviews.

• E-commerce has made shopping less accessible for consumers.

• E-commerce has influenced consumer behavior by increasing convenience, enhancing price transparency, and leveraging personalized marketing.

• E-commerce has decreased the variety of products available.

What impact does social media have on economic interactions?

• Social media isolates consumers from market trends.

• Social media enhances economic interactions by improving communication, influencing consumer behavior, and providing direct sales channels.

• Social media decreases consumer trust in brands.

• Social media has no effect on sales channels.