FINTECH TEST 1 PRACTICE QUESTIONS WITH DETAILED VERIFIED AND 100%
ACCURATE ANSWERS ALREADY GRADED A+ LATEST UPDATE!!!
Why did Satoshi Nakamoto design Bitcoin? - (ANSWER)*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? - (ANSWER)They won't be able to recover
the Bitcoin.
What would fractional reserve banking in a cryptocurrency do? - (ANSWER)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? - (ANSWER)The cost of
rewriting all subsequent blocks would exceed the economic benefits.
What is the most important difference between Bitcoin and Ethereum? - (ANSWER)Ethereum's
blockchain is designed to run smart contracts (applications running exactly as programmed).
How many transactions can Visa handle per second? - (ANSWER)24,000
How many transactions can Bitcoin handle per second? - (ANSWER)7
Which is true about initial coin offerings? - (ANSWER)*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? - (ANSWER)They effectively amount to the presale of the
issuer's forthcoming product.
, FINTECH TEST 1 PRACTICE QUESTIONS WITH DETAILED VERIFIED AND 100%
ACCURATE ANSWERS ALREADY GRADED A+ LATEST UPDATE!!!
What was the status of ICO's as of March 2018? - (ANSWER)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? -
(ANSWER)*Provide more relevant information to the investors.
*Give the investor greater governance power over management.
What did Robert Merton say about financial crises? - (ANSWER)*Trust is overrated
*They can hurt financial innovation (ex. Great Recession)
*They can spur innovation (ex. the 1970's)
Who did people in the retail financial space lose trust in? - (ANSWER)Regulators (explicitly stated)
MAYBE institutions and intermediaries, too.
What did Merton say about lost trust? - (ANSWER)It can only be partially won back through technologies
such as blockchain.
What happened in the 1970's? - (ANSWER)Stagflation
(Inflation + High Unemployment + Slow Economic Growth)
What does transparency do? - (ANSWER)It increases the value of reputation.
(You don't need to trust anything with transparency).
What percentage of electronic payments are processed in Atlanta? - (ANSWER)70%
What did Sean Banks say? - (ANSWER)*Crowdfunding was made easier by the Jobs Act
*Regulations will help slow the growth of digital currencies.
ACCURATE ANSWERS ALREADY GRADED A+ LATEST UPDATE!!!
Why did Satoshi Nakamoto design Bitcoin? - (ANSWER)*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? - (ANSWER)They won't be able to recover
the Bitcoin.
What would fractional reserve banking in a cryptocurrency do? - (ANSWER)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? - (ANSWER)The cost of
rewriting all subsequent blocks would exceed the economic benefits.
What is the most important difference between Bitcoin and Ethereum? - (ANSWER)Ethereum's
blockchain is designed to run smart contracts (applications running exactly as programmed).
How many transactions can Visa handle per second? - (ANSWER)24,000
How many transactions can Bitcoin handle per second? - (ANSWER)7
Which is true about initial coin offerings? - (ANSWER)*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? - (ANSWER)They effectively amount to the presale of the
issuer's forthcoming product.
, FINTECH TEST 1 PRACTICE QUESTIONS WITH DETAILED VERIFIED AND 100%
ACCURATE ANSWERS ALREADY GRADED A+ LATEST UPDATE!!!
What was the status of ICO's as of March 2018? - (ANSWER)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? -
(ANSWER)*Provide more relevant information to the investors.
*Give the investor greater governance power over management.
What did Robert Merton say about financial crises? - (ANSWER)*Trust is overrated
*They can hurt financial innovation (ex. Great Recession)
*They can spur innovation (ex. the 1970's)
Who did people in the retail financial space lose trust in? - (ANSWER)Regulators (explicitly stated)
MAYBE institutions and intermediaries, too.
What did Merton say about lost trust? - (ANSWER)It can only be partially won back through technologies
such as blockchain.
What happened in the 1970's? - (ANSWER)Stagflation
(Inflation + High Unemployment + Slow Economic Growth)
What does transparency do? - (ANSWER)It increases the value of reputation.
(You don't need to trust anything with transparency).
What percentage of electronic payments are processed in Atlanta? - (ANSWER)70%
What did Sean Banks say? - (ANSWER)*Crowdfunding was made easier by the Jobs Act
*Regulations will help slow the growth of digital currencies.
