6/4 Warm Up: Cryptocurrency

What is fiat money?

• Digital currency

• Money backed by a physical commodity

• Government-issued currency not backed by a physical commodity

• Cryptocurrency

How does cryptocurrency differ from traditional currency?

• It is issued by governments

• It is a physical form of money

• It operates on a decentralized network

• It is backed by gold

What is one advantage of using Bitcoin?

• Unlimited supply

• Centralized control

• Anonymity in transactions

• Backed by physical assets

What is blockchain technology?

• A type of physical currency

• A centralized database

• A distributed ledger technology

• A government-issued bond

What is the primary reason dollars and coins are accepted as currency in the U.S.?

• They are made of precious metals.

• They are issued by the government.

• They are backed by gold reserves.

• They are universally used worldwide.

Why do most people believe fiat money will retain its value?

• It is made of durable materials.

• It is accepted by everyone as currency.

• It is used only in the U.S.

• It is a new form of currency.

Why does fiat money have value?

• It is made of precious metals

• It is backed by a physical commodity

• It is accepted by governments and people

• It is used only in digital transactions

Which of the following is a characteristic of cryptocurrency?

• It is a form of commodity money

• It is backed by physical assets

• It relies on people's trust

• It is not used in financial technology

How is cryptocurrency different from government-issued currency?

• Cryptocurrency is physical, while government-issued currency is digital.

• Cryptocurrency is decentralized, while government-issued currency is controlled by a central authority.

• Cryptocurrency is issued by banks, while government-issued currency is mined.

• Cryptocurrency is backed by gold, while government-issued currency is not.

How is a transaction verified on a cryptocurrency network?

• By a central bank.

• Through a peer-to-peer network using blockchain technology.

• By government officials.

• Through a physical ledger.