FINTECH TEST 1 PRACTICE QUESTIONS WITH DETAILED
VERIFIED AND 100% ACCURATE ANSWERS
Why did Satoshi Nakamoto design Bitcoin? Correct Answers *To allow
two willing parties to transact directly without the need for a trusted
third party.
*To create a payments system that wasn't reversible.
*To solve the double spending problem by using a peer-to-peer network.
What happens if the owner of a Bitcoin loses their private key? Correct
Answers They won't be able to recover the Bitcoin.
What would fractional reserve banking in a cryptocurrency do? Correct
Answers It could increase the purchasing power of the cryptocurrency
(deflation) and eliminate traditional banks (new banks may need to
develop).
What is the claim that blockchains are tamperproof and immutable based
on? Correct Answers The cost of rewriting all subsequent blocks would
exceed the economic benefits.
What is the most important difference between Bitcoin and Ethereum?
Correct Answers Ethereum's blockchain is designed to run smart
contracts (applications running exactly as programmed).
How many transactions can Visa handle per second? Correct Answers
24,000
, How many transactions can Bitcoin handle per second? Correct Answers
7
Which is true about initial coin offerings? Correct Answers *They're
issued by startups instead of mature companies.
*They involve the presale of a product to be developed.
*They occur on a blockchain.
Which is an advantage to selling utility tokens? Correct Answers They
effectively amount to the presale of the issuer's forthcoming product.
What was the status of ICO's as of March 2018? Correct Answers The
question of when ICO issuance becomes a securities offering had not
been settled in court.
How can an entrepreneur encourage an investor to provide funding on
more favorable terms? Correct Answers *Provide more relevant
information to the investors.
*Give the investor greater governance power over management.
What did Robert Merton say about financial crises? Correct Answers
*Trust is overrated
*They can hurt financial innovation (ex. Great Recession)
*They can spur innovation (ex. the 1970's)
VERIFIED AND 100% ACCURATE ANSWERS
Why did Satoshi Nakamoto design Bitcoin? Correct Answers *To allow
two willing parties to transact directly without the need for a trusted
third party.
*To create a payments system that wasn't reversible.
*To solve the double spending problem by using a peer-to-peer network.
What happens if the owner of a Bitcoin loses their private key? Correct
Answers They won't be able to recover the Bitcoin.
What would fractional reserve banking in a cryptocurrency do? Correct
Answers It could increase the purchasing power of the cryptocurrency
(deflation) and eliminate traditional banks (new banks may need to
develop).
What is the claim that blockchains are tamperproof and immutable based
on? Correct Answers The cost of rewriting all subsequent blocks would
exceed the economic benefits.
What is the most important difference between Bitcoin and Ethereum?
Correct Answers Ethereum's blockchain is designed to run smart
contracts (applications running exactly as programmed).
How many transactions can Visa handle per second? Correct Answers
24,000
, How many transactions can Bitcoin handle per second? Correct Answers
7
Which is true about initial coin offerings? Correct Answers *They're
issued by startups instead of mature companies.
*They involve the presale of a product to be developed.
*They occur on a blockchain.
Which is an advantage to selling utility tokens? Correct Answers They
effectively amount to the presale of the issuer's forthcoming product.
What was the status of ICO's as of March 2018? Correct Answers The
question of when ICO issuance becomes a securities offering had not
been settled in court.
How can an entrepreneur encourage an investor to provide funding on
more favorable terms? Correct Answers *Provide more relevant
information to the investors.
*Give the investor greater governance power over management.
What did Robert Merton say about financial crises? Correct Answers
*Trust is overrated
*They can hurt financial innovation (ex. Great Recession)
*They can spur innovation (ex. the 1970's)
