Module 7b: Blockchain and its Application in Finance

Question 1

Flashcard 1: Barter Economy
Q: What is a barter economy?
A) An economy where currency is used for transactions
B) An economy based on the direct trade of goods and services
C) An economy reliant on digital currency
D) An economy with regulated prices

Answer 1

Answer: B) An economy based on the direct trade of goods and services

Question 2

Flashcard 2: Commodities in Barter
Q: Which of the following is a disadvantage of using commodities in a barter economy?
A) High value
B) Limited use
C) Shelf-life and size dependency
D) Universal acceptance

Answer 2

Answer: C) Shelf-life and size dependency

Question 3

Flashcard 3: Function of Money
Q: According to mainstream economics, what does money primarily provide?
A) Security in trade
B) A universal store of value
C) Increased production efficiency
D) Tax benefits

Answer 3

Answer: B) A universal store of value

Question 4

Flashcard 4: Advantages of Currency
Q: What is one key advantage of currency over commodities?
A) It can be traded for goods
B) It requires no storage
C) It lasts longer than most commodities
D) It is more valuable than gold

Answer 4

Answer: C) It lasts longer than most commodities

Question 5

Flashcard 5: History of Currency
Q: What was the first form of currency invented by the Egyptians?
A) Paper money
B) Coins made from metals
C) Cowrie shells
D) Digital currency

Answer 5

Answer: B) Coins made from metals

Question 6

Flashcard 6: Role of Central Banks
Q: What is the role of a central bank in modern money?
A) To manage commodity prices
B) To regulate the printing of paper money
C) To ensure gold backing for all currencies
D) To eliminate currency exchange

Answer 6

Answer: B) To regulate the printing of paper money

Question 7

Flashcard 7: Cheques
Q: Which of the following is a disadvantage of using cheques?
A) They are legal tender
B) They can be post-dated
C) They can be refused by creditors
D) They are safer than cash

Answer 7

Answer: C) They can be refused by creditors

Question 8

Flashcard 8: Credit Cards
Q: What is a primary feature of credit cards?
A) They are a form of cash
B) They require immediate payment
C) They allow borrowing up to a limit
D) They are linked directly to savings accounts

Answer 8

Answer: C) They allow borrowing up to a limit

Question 9

Flashcard 9: Bitcoin
Q: What type of currency is Bitcoin?
A) Fiat currency
B) Commodity currency
C) Cryptocurrency
D) Paper currency

Answer 9

Answer: B) Bitcoin address and QR code