FT Week 4

Which of the following is NOT a type of stablecoin?

• Fiat-collateralized stablecoins

• Asset-backed stablecoins

• Time-backed stablecoins

• Non-collateralized stablecoins

How does an algorithmic stablecoin maintain its peg to the dollar?

• It is backed 1:1 by US dollars in a bank account

• It uses smart contracts to adjust the supply of the coin based on demand

• It is pegged to a basket of assets, such as stocks and bonds

• It is mined using proof-of-work algorithms like Bitcoin

Which stablecoin's peg collapsed using a mint-and-burn system?

• Tether

• Terra

• Binance USD

• DAI

Which of the following is NOT a good reason to use a stablecoin?

• Protection from fraudsters

• Protection from inflation

• Fast and cheap cross-border payments

• Access to USD without a bank account

Stablecoins are...

• Decentralised

• Centralised

• Either Decentralised or Centralised

• Neither Decentralised nor Centralised

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

• To replace all physical cash immediately

• To serve as a digital form of central bank-issued money

• To eliminate all commercial banks

• To act as a private cryptocurrency like Bitcoin

Retail CBDC is used by (select 2 answers)

• Individuals

• Banks

• Large corporations

• Businesses

How many central banks currently have a live retail CBDC?

• 1

• 2

• 3

• 4

CBDC is more attractive in emerging economies primarily because it may improve

• Financial stability

• Financial inclusion

• Payment efficiency

• Financial regulation

A direct CBDC would threaten the existence of

• Regulators

• Retailers

• Nations

• Banks