Deck 12: Cryptocurrencies

Question 1

Crpytocurrencies are based on:

A) Market demand for money
B) The monetary base
C) Computer algorithms
D) Central bank actions

Answer 1

C

Question 2

Which of the following is not an example of a real world cryptocurrency?

A) Litecoin
B) PC Coin
C) Coinye
D) Ripple

Answer 2

B

Question 3

Since cryptocurrencies require intense computing power, it benefits from:

A) Areas with cheap electricity
B) Countries with high levels of regulation
C) Economies that are agricultural-based
D) Nations that are reliant on exports

Answer 3

A

Question 4

Which function of money do cryptocurrencies do least well in attaining?

A) Medium of exchange
B) Store of value
C) Unit of account
D) Durability

Question 5

Which of these is not a characteristic of blockchain technology?

A) Linked computers
B) Easily accessible by all
C) Enhanced security
D) Decentralized technology

Question 6

Cryptocurrencies are often used for:

A) Transfering wealth between family members
B) Paying taxes to the government
C) Tax evasion
D) Paying for groceries

Question 7

Cryptocurrencies are an example of:

A) Money
B) A derivative security
C) A bond
D) An asset

Question 8

As of 2021, cryptocurrencies are:

A) Produced by central banks
B) Produced by governments
C) Produced by private entities
D) Produced by commerical banks

Question 9

The future of cryptocurrencies in our economy:

A) Is being ignored by governments
B) Is actively being researched and investigated by central banks
C) Is being ignored by academic economists
D) Is fully understood