Worksheets5.2 Digital Currency Cambridge IGCSE 0478
Total questions: 10
Worksheet time: 5mins
What is a key characteristic of digital currency?
It exists only in electronic form and has no physical presence.
It is only issued by banks and governments.
It cannot be used for purchasing goods or services.
It is illegal in all countries.
Which of the following is an example of digital currency?
Bitcoin
Debit card transactions
Printed banknotes
Gold bars
What is the main function of blockchain technology in digital currencies?
It securely records and tracks all digital currency transactions.
It converts digital currency into physical cash.
It controls the interest rates of digital currencies.
It acts as a central bank for cryptocurrencies.
Why is blockchain considered secure and transparent?
Transactions recorded on the blockchain cannot be altered or deleted.
The blockchain is stored on a single central server.
Only one user has access to the blockchain ledger.
Transactions on the blockchain are hidden from public view.
What is the structure of a blockchain?
A series of linked records called blocks.
A single document stored in a central database.
A private database owned by a single company.
A temporary record that is erased after transactions are complete.
How does blockchain prevent fraud in digital currency transactions?
Transactions are verified and linked to previous records, preventing duplication or tampering.
Digital currencies have built-in fraud detection software.
Banks monitor and approve every transaction on the blockchain.
The blockchain deletes fraudulent transactions automatically.
What happens when a new transaction is made using digital currency?
The transaction is added to a new block and linked to previous blocks in the blockchain.
The transaction is converted into physical money before being completed.
The transaction is stored temporarily and deleted after 24 hours.
The transaction requires approval from a central authority.
What makes digital currency different from traditional currency?
Digital currency is purely electronic and does not have a physical form.
Digital currency is always controlled by central banks.
Digital currency can only be used in specific countries.
Digital currency cannot be used to buy goods or services.
Why is blockchain often referred to as a 'distributed ledger'?
It is stored across multiple computers rather than a central location.
It is controlled by a single organization.
It only records transactions temporarily.
It is used only by banks for financial transactions.
Which of the following statements is true about cryptocurrencies like Bitcoin?
They operate on decentralized blockchain networks.
They are backed by physical assets such as gold.
