#1
Which of the following is NOT a quality of a good exchange medium?
Intrinsic value
ExplanationIntrinsic value is not required for a good exchange medium; it's about utility and acceptance.
#2
What does 'fungibility' mean in the context of an exchange medium?
The medium can be exchanged for different goods of equal value
ExplanationFungibility ensures each unit of the medium is identical and interchangeable.
#3
Which of the following is NOT a characteristic of a good exchange medium?
Easily counterfeited
ExplanationA good exchange medium is difficult to counterfeit, ensuring trust and value.
#4
What is the term used to describe the ability of an exchange medium to retain its value over time?
Stability
ExplanationStability ensures the medium's value remains relatively constant over time.
#5
Which of the following is a key function of an exchange medium?
Facilitating trade
ExplanationFacilitating trade is the primary function of an exchange medium, enabling transactions.
#6
Which of the following is a characteristic of a good exchange medium?
Acceptability
ExplanationAcceptability ensures the medium is widely recognized and trusted for transactions.
#7
What does 'acceptability' refer to in the context of an exchange medium?
The medium is widely recognized and trusted
ExplanationAcceptability implies the medium is commonly used and trusted by people.
#8
Which of the following is an example of a commodity used historically as an exchange medium?
Gold
ExplanationGold has been used historically as it meets many criteria of a good exchange medium.
#9
What term describes the ease with which an exchange medium can be transferred or carried?
Portability
ExplanationPortability ensures the medium can be easily moved or transferred.
#10
Which of the following is an example of a fiat currency?
Paper money
ExplanationFiat currency derives its value from government regulation and is not backed by physical commodities.
#11
Which of the following best describes 'divisibility' as a quality of an exchange medium?
The medium can be divided into smaller units without losing value
ExplanationDivisibility ensures the medium's usability in transactions of varying amounts.
#12
In the context of an exchange medium, what does 'unit of account' refer to?
The medium's use as a standard measure of value
ExplanationUnit of account refers to the medium's role in quantifying value for goods and services.
#13
Which of the following is a characteristic of a cryptocurrency as an exchange medium?
Decentralization
ExplanationCryptocurrencies operate on decentralized networks, removing central authorities.
#14
Which consensus mechanism is commonly used in blockchain networks like Bitcoin and Ethereum?
Proof of Work
ExplanationProof of Work relies on computational power to validate transactions and secure the network.
#15
What term describes the process of swapping one cryptocurrency for another without using traditional financial intermediaries?
DEX
ExplanationDEX (Decentralized Exchange) enables peer-to-peer cryptocurrency trading without relying on intermediaries.