Module 1 Flashcards
- Define cryptocurrency and its use in the broader digital economy. - Identify different types of cryptocurrencies. - Discover how governments attempt to regulate cryptocurrency.
Which of these answers does NOT describe the function of a virtual currency?
A) It functions as a medium of exchange.
B) It functions as a unit of account.
C) It functions as a store of value but does not have legal tender status.
D) It functions as a physical commodity.
D) It functions as a physical commodity.
A ____________ currency can be best described as a currency that is backed by a commodity or is issued by a single party who keeps a ledger of the value and balance of who has what.
centralized
_______________ are much like an initial public offering you might recognize from the traditional method of buying stock or portion of a company.
ICOs
Digital wallets use public key cryptography otherwise known as ___________ cryptography, which is any cryptographic system that uses pairs of keys: public keys which may be disseminated widely, and private keys which are known only to the owner.
asymmetrical
What is the name of the online distributed ledger where all the nodes in a network keep a consensus of transaction records?
blockchain
Which of the following is NOT one of the transactional properties of cryptocurrency?
A) Irreversibility
B) Security
C) Identifiable Users
D) Permissionless
C) Identifiable Users
The United States’ posture on cryptocurrencies is that they are _______.
legal
Many of the federal cases being prosecuted today were started as a failure to register as a ______________ charge or 18USC1960.
Money Service Business
Which of the following common legal processes are NOT used to further an international cryptocurrency investigation?
A) USA Patriot Act section 314(a)(b)
B) Mutual Legal Assistance Treaty (MLAT)
C) Supreme Court of the United States (SCOTUS)
D) Customs Mutual Assistance Agreement (CMAA)
C) Supreme Court of the United States (SCOTUS)
Which icon represents the cryptocurrency Ethereum?
B
Which of the following are considered altcoins? Check all that apply.
A) Monero
B) Ethereum
C) Bitcoin
D) Zcash
A, B, D
The inventor of Bitcoin was ____________.
Satoshi Nakamoto
The images below represent what?
digital wallets
Which of the following are some limitations of cryptocurrency? Check all that apply.
A) Lack of Stability in Price
B) Extremely High Energy Consumption
C) High and Variable Transactions Costs
D) Vulnerability to Debasement
A, B, C, D (All of the above)
What is one of the most significant reasons criminals use cryptocurrency?
They think it is anonymous.
