Digital Currency

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| By Luolinggggg

Luolinggggg

Community Contributor

Quizzes Created: 1 | Total Attempts: 467

Questions: 5 | Attempts: 467 | Updated: Mar 21, 2023

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Questions and Answers

1.

What are the benefits of using digital currency rather than physical currency?
- A.
  
  It is cheaper and faster
- B.
  
  It is faster and boundless
- C.
  
  It is cheaper and boundless
- D.
  
  It is safer and faster
Correct Answer
B. It is faster and boundless

Explanation
Using digital currency instead of physical currency offers the benefits of being faster and boundless. Digital transactions can be completed instantly, eliminating the need for physical transportation or waiting for checks to clear. Additionally, digital currency can be used for transactions across borders without the limitations of physical currency exchange. This allows for seamless international transactions and eliminates the need for currency conversion fees.

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2.

Digital currency was first created in ____, Dot com bubble was one of the first E-gold founded in ____ and backed by gold.
- A.
  
  1900s, 2006
- B.
  
  1897, 1900s
- C.
  
  1900s, 1996
- D.
  
  1897, 1997
Correct Answer
C. 1900s, 1996

Explanation
Digital currency was first created in the 1900s. The Dot com bubble was one of the first digital currencies founded in 1996 and was backed by gold.

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3.

Liberty reserve was founded in 2005 and it allows users to convert physical currencies to Liberty Reserve Dollars or Euros, and exchange to and fro at a 1% fee. True or False?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
It was founded in 2006

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4.

Why were both Liberty Reserve Dollars and Dot com bubble shut down by the US government? You can choose more than one option.
- A.
  
  They were not controlled by the US authorities
- B.
  
  They were both centralised and controlled by central authorities
- C.
  
  They were allegedly making more money through illegitimate sources
- D.
  
  They were stealing people's money
Correct Answer(s)
B. They were both centralised and controlled by central authorities
C. They were allegedly making more money through illegitimate sources

Explanation
Both Liberty Reserve Dollars and the Dot com bubble were shut down by the US government because they were both centralised and controlled by central authorities. Additionally, they were allegedly making more money through illegitimate sources.

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5.

In recent years, there has been interest in cryptocurrencies which led to the start of _____ that eventually became a widely used form of digital currency. Fill in the blank

Correct Answer(s)
Bitcoin

Explanation
In recent years, there has been interest in cryptocurrencies which led to the start of Bitcoin that eventually became a widely used form of digital currency. Bitcoin, being the first decentralized digital currency, gained popularity due to its secure and transparent nature. It introduced the concept of blockchain technology, which revolutionized the way transactions are conducted online. Bitcoin's success paved the way for the development and adoption of numerous other cryptocurrencies, making it a widely recognized and accepted form of digital currency in today's financial world.

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4

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Current Version
Mar 21, 2023

Quiz Edited by
ProProfs Editorial Team
Aug 25, 2015

Quiz Created by
Luolinggggg

Digital Currency

What are the benefits of using digital currency rather than physical currency?

Digital currency was first created in ____, Dot com bubble was one of the first E-gold founded in ____ and backed by gold.

Liberty reserve was founded in 2005 and it allows users to convert physical currencies to Liberty Reserve Dollars or Euros, and exchange to and fro at a 1% fee. True or False?

Why were both Liberty Reserve Dollars and Dot com bubble shut down by the US government? You can choose more than one option.

In recent years, there has been interest in cryptocurrencies which led to the start of _____ that eventually became a widely used form of digital currency. Fill in the blank

Digital currency was first created in , Dot com bubble was one of the first E-gold founded in and backed by gold.