Question

personal finance -- crypto & cybercoins practice question assignment
name:
period:
date:
multiple choice (circle the best answer.)

1. cryptocurrency is:

a. a physical coin backed by the u.s. government
b. digital money that uses cryptography to secure transactions
c. a type of online game token that cant be used in real life
d. a prepaid debit card

1. the technology that records crypto transactions in a secure, chronological public ledger is called:

a. firewall
b. blockchain
c. domain
d. router

1. bitcoin and ethereum are examples of:

a. stablecoins
b. tokens used only for gaming
c. cryptocurrencies
d. government - issued digital dollars

1. a crypto wallet is used to:

a. hold physical bitcoin coins
b. store your private keys needed to access your crypto
c. store credit scores
d. borrow money from the government

1. one major risk of investing in cryptocurrency is:

a. guaranteed profit
b. little to no price changes
c. extreme volatility and value fluctuations
d. fdic insurance protects your crypto

Explanation:

1. Cryptocurrency is digital money that uses cryptography for secure transactions.
2. Blockchain records crypto transactions in a secure, chronological public ledger.
3. Bitcoin and Ethereum are well - known cryptocurrencies.
4. A crypto wallet stores private keys for accessing crypto.
5. Cryptocurrency investing has extreme volatility and value fluctuations.

Answer:

1. B. Digital money that uses cryptography to secure transactions
2. B. Blockchain
3. C. Cryptocurrencies
4. B. Store your private keys needed to access your crypto
5. C. Extreme volatility and value fluctuations