Digital and Cryptocurrencies Quiz

What is a key characteristic of digital currencies?

• They are controlled by central banks.

• They are always backed by gold.

• They exist only in physical form.

• They can be exchanged digitally without physical cash.

How do digital currencies differ from cryptocurrencies?

• Digital currencies are always virtual.

• Cryptocurrencies are controlled by central banks.

• Digital currencies can exist in both physical and digital forms.

• Cryptocurrencies have a physical form.

Which of the following is true about cryptocurrencies?

• They are a type of digital currency.

• They are always issued by governments.

• They have a physical version.

• They cannot be used for online transactions.

What technology do cryptocurrencies use to ensure security?

• Paper records

• Physical vaults

• Blockchain technology

• Central banking systems

Why are cryptocurrencies considered secure?

• They use cryptography and are part of a blockchain network.

• They are only used in small transactions.

• They are stored in physical banks.

• They are backed by government regulations.