WorksheetsInvesting - Strand 5, Standard 2 Review
Total questions: 15
Worksheet time: 8mins
What is cryptocurrency?
Physical money stored in a bank
Digital currency verified by a decentralized network
A stock issued by a tech company
A type of government bond
What technology does cryptocurrency rely on to record transactions?
Credit reports
Blockchain
USB hardware
ATMs
What does “decentralized” mean in cryptocurrency?
Controlled by one company
Managed by the federal government
Not controlled by any single authority
Only available in certain states
Which of the following verifies cryptocurrency transactions?
A single bank
Government agencies
A network of computers
Credit card companies
What backs the value of most cryptocurrencies?
Gold stored in vaults
Company profits
Government regulation
Supply and demand
Why are cryptocurrencies considered high-risk investments?
Their prices never change
They are guaranteed to grow in value
Their prices can change extremely quickly
They are illegal to buy
Which statement is TRUE about cryptocurrency?
It exists only in digital form
It is guaranteed by the U.S. government
It always increases in value
It cannot be used for purchases
What is a digital wallet?
A bank that holds paper money
An app or device that stores cryptocurrency
A debit card for online shopping
A physical safe for valuables
What is Bitcoin (BTC) mainly known for?
Being the first cryptocurrency
Being backed by real estate
Being a government-controlled currency
Having unlimited supply
What major feature makes Ethereum (ETH) different from Bitcoin?
It has no blockchain
It uses smart contracts
It can only be used in one country
It has no digital wallet options
Dogecoin (DOGE) originally became popular because:
It was created by a major bank
It was tied to stock market indexes
It was based on an internet meme
It required a minimum investment of $10,000
Why can cryptocurrency be difficult to regulate?
It is printed in many different countries
It is decentralized and not controlled by governments
It requires a physical bank to operate
It is only used by large corporations
What is the purpose of cryptography in cryptocurrency?
To create physical coins
To secure transactions and protect ownership
To set the price of the currency
To make the currency heavier
Why might an investor choose cryptocurrency?
Values always stay stable
Low risk and guaranteed returns
Potential for high growth
Required by law
What causes large price swings in crypto markets?
Employee salaries
Weather conditions
Social media hype and investor speculation
Government-backed guarantees
