Digital Currency Quiz

What are the two main categories of Digital Currency?

• Centralized and Decentralized Currency

• Cryptocurrency and Blockchain

• Fiat Currency and Digital Currency

• E-money and Virtual Currency

What does e-money use as its basis?

• Cryptocurrency

• Virtual Currency

• Fiat Currency

• Gold Standard

Which of the following is an example of a private e-money?

• Paypal

• Sand Dollar

• Bitcoin

• Central Bank Digital Currency

What type of Virtual Currency operates exclusively within a self-contained environment?

• Decentralized VCs

• Non-convertible VCs

• Convertible VCs

• Centralized VCs

What is a characteristic of Convertible Virtual Currencies?

• They operate on a closed scheme

• They cannot be exchanged for fiat currency

• They are always centralized

• They can be exchanged for fiat currency

What is CBDC stands for ?

• Central Bank Digital Currency

• Center of Banking in Digital Currency

• Cost of Bank Dollar Currency

• Currency Banking Digital Center

What technology underpins the operation of cryptocurrencies?

• Centralized Ledger

• Blockchain

• Fiat Currency

• E-money

Which of the following describes a decentralized cryptocurrency?

• It is controlled by a central authority

• It operates on a blockchain

• It is always convertible

• It cannot be traded

What is the primary function of a Central Bank Digital Currency (CBDC)?

• To operate independently of government regulations

• To serve as a private payment system

• To replace all forms of currency

• To represent fiat currency in digital form

What is a key benefit of distributed ledger technology?

• It eliminates the need for currency

• It enhances transaction speed

• It centralizes transaction processing

• It allows for decentralized settlement