Alternative Investments Test Review: Short Selling, Crypto, NFT

What is the largest cryptocurrency in terms of market cap?

• Ethereum

• Litecoin

• Bitcoin

• Ripple

What is a blockchain?

• A type of cryptocurrency

• A digital ledger for recording transactions

• A physical wallet for storing coins

• A government regulation

What is the primary function of a cryptocurrency?

• To act as a physical currency

• To regulate the generation of units and verify fund transfers

• To store physical assets

• To provide government loans

What is a cryptocurrency wallet used for?

• Storing public and private keys for transactions

• Exchanging fiat money

• Mining new coins

• Regulating market prices

What is a digital exchange?

• A physical marketplace for trading goods

• A platform for trading cryptocurrencies and digital currencies

• A government agency for regulating currencies

• A type of cryptocurrency

What is the main characteristic of decentralized finance (DeFi)?

• Involvement of banks and governments

• Conducting financial activities without intermediaries

• Use of physical currency

• Centralized control by a single entity

Which term describes a business that allows trading of cryptocurrencies for other assets?

• Crypto Coin

• Digital Exchange

• Cryptocurrency Wallet

• Blockchain

Which of the following is a digital currency?

• Cryptocurrency

• Fiat Money

• Gold

• Silver

What is the purpose of a crypto token?

• To act as a physical currency

• To interact with applications on a blockchain

• To replace government-issued money

• To store physical assets

What is the process of validating a cryptocurrency transaction and adding it to the blockchain called?

• Speculation

• Smart Contract

• Mining

• Fiat money