Question

4 which of the following is a benefit often associated with decentralized digital currencies? * 10 points
a. regulation by a central bank
b. peer - to - peer transactions without intermediaries
c. guaranteed price stability
d. government deposit insurance

5 traditional financial systems are typically: * 10 points
a. unregulated and decentralized
b. centralized and regulated
c. blockchain - based
d. only digital

Explanation:

Question 4

Decentralized digital currencies (like cryptocurrencies) operate without central authority. Option A is incorrect as they aren’t regulated by central banks. Option C is wrong because their prices are volatile, not stable. Option D is incorrect as they lack government deposit insurance. Option B is correct because decentralized digital currencies enable peer - to - peer transactions without intermediaries (like banks).

Traditional financial systems (e.g., banks, financial institutions) are managed by central entities (like central banks, regulatory bodies) and are subject to regulations. Option A is wrong as they are regulated and centralized. Option C is incorrect as blockchain - based systems are more associated with decentralized digital finance, not traditional systems. Option D is wrong as traditional systems include physical (e.g., cash) and digital forms. Option B is correct as traditional financial systems are centralized (controlled by central authorities) and regulated.

Answer:

B. Peer - to - peer transactions without intermediaries

Question 5