FIN 420 FINAL EXAM QUESTIONS AND ANSWERS
Which of the following is NOT a property of money? - Answers :Mechanism for barter.
What is the theoretical purpose of the gold standard? - Answers :To keep inflation and
government spending in check.
The dollar as a reserve currency allows for what? - Answers :Makes goods less
expensive for those that hold the dollar.
Which is NOT a problem with government control of money? - Answers :Deflation
What is the idea of recycling? - Answers :Country A buys goods from Country B and
and Country B send that money back to Country A.
What is the protocol called to determine which node / miner verifies a block of
transactions in the Bitcoin protocol? - Answers :Proof of Work
How is car insurance being disrupted? - Answers :Using personal driving data to price
out premiums versus averages.
Which insurance company did we speak about that does consistent monitoring of the
home to make sure the current home insurance coverage is optimal? - Answers :Hippo
Which area of real estate if great for blockchain? - Answers :Keeping a record of the title
How does Zillow and Opendoor disintermediate the real estate process? - Answers :Buy
and sell homes for cash
How many bitcoins can ever exist? - Answers :21 million
What is the point of having a private key with digital wallets? - Answers :Private key
allows to receive Bitcoin.
Which defi space allows to transfer from one token to another token? - Answers :UNI
What is a Bitcoin block? - Answers :It's a bunch of cryptographically verified
transactions, bundled together and written on the blockchain
What purpose do miners serve? - Answers :Miners collectively decide which
transactions are getting written onto the blockchain.
How fast is each new Bitcoin block "found"? - Answers :On average, every 10 minutes
, What is a 51% Attack? - Answers :An attack on a blockchain by a group of miners who
control more than 50% of the network's mining hash rate
Bitcoin supply is a known quantity meaning we know how much Bitcoin is being created
per day today and tomorrow. How does the protocol work such that we know the
quantity is fixed? - Answers :The difficulty is adjusted every 2016 blocks so that the
average time between each block remains 10 minutes and thus Bitcoin supply is
created every 10 minutes.
What if Bitcoin took 5% of all the stores of value as shown in the PowerPoint, at what
price would one Bitcoin go to? Rounded - Answers :$1.5 million
How long does the complexity of the math problem take? - Answers :2 minutes
What is the technology that powers decentralized finance that essentially automates a
market maker? - Answers :Smart Contract
What differentiates these DeFi dapps from their traditional banks? - Answers :All of the
Above:
Global
Permissionless
Flexible user experience
How is Bitcoin cash different? - Answers :Larger blocks
What is the main value defi provides in order to keep the system afloat? - Answers :B
and C
Overcollateralization
Pools of Liquidity
What is a synthetic asset? - Answers :A way to tokenize or create a synthetic asset from
an underlying asset.
Which is NOT a reason why Big Data has proliferated? - Answers :Lack of storage
What is unsupervised learning - Answers :Uncovers patterns
Based on the PowerPoint imagine you want to send Anna a very personal document.
You put the document in the box and use a copy of her public key to lock it. How will
Anna retrieve the document? - Answers :A to B
What is a fully private blockchain? - Answers :centralized to one organization
What is a neural network? - Answers :The information is transferred from one layer to
another over connecting channels.
Which of the following is NOT a property of money? - Answers :Mechanism for barter.
What is the theoretical purpose of the gold standard? - Answers :To keep inflation and
government spending in check.
The dollar as a reserve currency allows for what? - Answers :Makes goods less
expensive for those that hold the dollar.
Which is NOT a problem with government control of money? - Answers :Deflation
What is the idea of recycling? - Answers :Country A buys goods from Country B and
and Country B send that money back to Country A.
What is the protocol called to determine which node / miner verifies a block of
transactions in the Bitcoin protocol? - Answers :Proof of Work
How is car insurance being disrupted? - Answers :Using personal driving data to price
out premiums versus averages.
Which insurance company did we speak about that does consistent monitoring of the
home to make sure the current home insurance coverage is optimal? - Answers :Hippo
Which area of real estate if great for blockchain? - Answers :Keeping a record of the title
How does Zillow and Opendoor disintermediate the real estate process? - Answers :Buy
and sell homes for cash
How many bitcoins can ever exist? - Answers :21 million
What is the point of having a private key with digital wallets? - Answers :Private key
allows to receive Bitcoin.
Which defi space allows to transfer from one token to another token? - Answers :UNI
What is a Bitcoin block? - Answers :It's a bunch of cryptographically verified
transactions, bundled together and written on the blockchain
What purpose do miners serve? - Answers :Miners collectively decide which
transactions are getting written onto the blockchain.
How fast is each new Bitcoin block "found"? - Answers :On average, every 10 minutes
, What is a 51% Attack? - Answers :An attack on a blockchain by a group of miners who
control more than 50% of the network's mining hash rate
Bitcoin supply is a known quantity meaning we know how much Bitcoin is being created
per day today and tomorrow. How does the protocol work such that we know the
quantity is fixed? - Answers :The difficulty is adjusted every 2016 blocks so that the
average time between each block remains 10 minutes and thus Bitcoin supply is
created every 10 minutes.
What if Bitcoin took 5% of all the stores of value as shown in the PowerPoint, at what
price would one Bitcoin go to? Rounded - Answers :$1.5 million
How long does the complexity of the math problem take? - Answers :2 minutes
What is the technology that powers decentralized finance that essentially automates a
market maker? - Answers :Smart Contract
What differentiates these DeFi dapps from their traditional banks? - Answers :All of the
Above:
Global
Permissionless
Flexible user experience
How is Bitcoin cash different? - Answers :Larger blocks
What is the main value defi provides in order to keep the system afloat? - Answers :B
and C
Overcollateralization
Pools of Liquidity
What is a synthetic asset? - Answers :A way to tokenize or create a synthetic asset from
an underlying asset.
Which is NOT a reason why Big Data has proliferated? - Answers :Lack of storage
What is unsupervised learning - Answers :Uncovers patterns
Based on the PowerPoint imagine you want to send Anna a very personal document.
You put the document in the box and use a copy of her public key to lock it. How will
Anna retrieve the document? - Answers :A to B
What is a fully private blockchain? - Answers :centralized to one organization
What is a neural network? - Answers :The information is transferred from one layer to
another over connecting channels.
