Deck 53: Negotiable Instruments

Question 1

Transactions in virtual currency do not require financial institutions, and can be conducted anonymously. With these features of virtual currency in mind, the most ethical action a user can take is to

A)protect himself or herself.
B)avoid the use of virtual currency entirely.
C)use virtual currency exclusively.
D)take advantage of those who are not aware of how virtual currency is used.

Answer 1

A

Question 2

Virtual currency has legitimate uses. Laws that apply to virtual currency include all of the following except

A)federal registration requirements.
B)state licensing requirements.
C)the proposed uniform Regulation of Virtual Currencies Act.
D)the Federal Deposit Insurance Corporation regulations.

Answer 2

D

Question 3

Businesses have been required to switch to digital invoices in

A)the European Union.
B)the United States.
C)countries that host the Association of Financial Professionals.
D)the home regions of cloud-based companies.

Answer 3

A

Question 4

Virtual currency is a medium of exchange that operates like a currency in some environments. In other words, more precisely, virtual currency is

A)digital money.
B)coins and bills.
C)checks, notes, and other negotiable instruments in paper form.
D)all of the choices.

Question 5

Virtual currency is stored in a digital wallet and identified by public keys. To access virtual currency requires corresponding sequences of private keys. Unlike real currency, virtual currency is

A)not issued or backed by any government or bank.
B)subject to special digital transaction fees.
C)risk-free.
D)required to be accepted in payment or exchange.

Question 6

A digital invoice is

A)an electronic version of a paper bill that can be paid online.
B)an online view of a paper bill that cannot be paid online.
C)a statement for a subscription service that makes B2B payments.
D)a supplemental record of a transaction payment.