Exploring Blockchain and Fintech Concepts

Which of the following best describes a cryptocurrency?

• A physical coin used for online shopping

• A digital or virtual currency that uses cryptography for security

• A type of credit card issued by banks

• A government-issued paper note

What is the primary function of a blockchain in the context of cryptocurrencies?

• To print physical money

• To record and verify transactions in a secure, decentralised manner

• To store passwords for online accounts

• To manage email communications

Which of the following is a key feature of smart contracts?

• They require manual approval for every transaction

• They are self-executing agreements with the terms directly written into code

• They are only valid in the United Kingdom

• They can only be used for buying property

What does DeFi stand for in the context of blockchain and fintech?

• Decentralised Finance

• Defined Financials

• Digital Funds

• Deferred Income

Which of the following is NOT a benefit of decentralised finance (DeFi)?

• Increased accessibility to financial services

• Reduced reliance on traditional banks

• Transactions are always reversible

• Lower transaction fees

How has blockchain technology impacted traditional banking?

• By making all bank branches obsolete overnight

• By enabling faster and more secure cross-border payments

• By increasing the use of cheques

• By eliminating the need for customer identification

Which of the following best explains the term "mining" in the context of cryptocurrencies?

• Digging for precious metals underground

• The process of validating and adding transactions to the blockchain

• Printing new banknotes

• Sending emails to users

What is a major risk associated with investing in cryptocurrencies?

• Guaranteed high returns

• High price volatility and potential for loss

• Fixed interest rates

• Government-backed insurance

Which of the following is an example of a smart contract application?

• Automated insurance payouts based on weather data

• Handwritten agreements between two parties

• Physical safes with combination locks

• Traditional bank loans only

Which of the following statements about blockchain is TRUE?

• Blockchain records can be easily altered or deleted

• Blockchain provides a transparent and immutable ledger of transactions

• Blockchain is only used for video games

• Blockchain requires a central authority to function