LEVEL 2 - TAX SPECIALIST (HRB) – CRYPTO EXAM QUESTIONS WITH CORRECT ANSWERS

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2- // /




TAX
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SPECIALIST
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(HRB) –
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CRYPTO EXAM QUESTIONS WITH CORRECT ANSWERS
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Currency //is //tangible //or //intangible //property? //- //CORRECT //ANSWERS(S)✔✔Intangible



Cash /
/is /


/fiat/real /


/currency, /


/gov. //issued //& //not //backed //by //commodities //like //- //CORRECT //ANSWERS(S)✔✔gold //or //silver




Digital /
/Currency /


/is //any //currency //used //exclusively //in //what //form? //- //CORRECT //ANSWERS(S)✔✔Electronic




One //sub //type //of //digital //currency //is //- //CORRECT //ANSWERS(S)✔✔virtual //currency



The /
/IRS /


/definition /


/of /


/virtual /


/currency /


/is... //- /


/CORRECT /

,/ANSWERS(S)✔✔a /
/digital /


/representation /


/of /


/value /


/that //functions //as //a //medium //of //exchange, //a //unit //of //account, //and/or //a //store //of //value




Virtual /
/currency /


/is /


/largely /


/unregulated, /


/usually /


/controlled /


/by /


/its /


/developers, //not //backed //by //a... //- //CORRECT //ANSWERS(S)✔✔central //bank //or //government.




Virtual /
/Currency //does //not //have //legal //tender //status //in //the... //- //CORRECT //ANSWERS(S)✔✔US




Virtual /
/Currency /


/possesses /


/value /


/for /


/the /


/same /


/reason /


/as /


/the /


/dollar /


/bill... //- //CORRECT //ANSWERS(S)✔✔the //users //of //the //currency //have //agreed //that //it //has //that


//value.

,In /
/2022, /


/the /


/IRS //began //referring //to //virtual //currency //as //a... //- //CORRECT //ANSWERS(S)✔✔digital //asset




A/
/2nd /


/subtype /


/of /


/Digital /


/Currency /


/that /


/is /


/the /


/virtual /


/form /


/of /


/Fiat/Real /


/Currency /


/and /


/backed /


/by //government //is... //- //CORRECT //ANSWERS(S)✔✔Central //Bank //Digital //Currency //(CBDC)




What //are //the //2 //Virtual //Currency //sub-types? //- //CORRECT //ANSWERS(S)✔✔Non-
convertible //or //Convertible.



Non-convertible //or //closed //currency //- //CORRECT //ANSWERS(S)✔✔game //currency, //like //candy
//crush /


/gold. /


/Closed /


/currencies /


/like /


/this /


/do /


/not /

, /have /
/an /


/actual /


/value /


/outside /


/of /


/the /


/game, /


/and /


/generally //can't //be //transferred //to //another //game. //They //can //only //be //spent //or //trading //in-


game.



Convertible /
/or /


/open /


/virtual /


/currency... //- /


/CORRECT /


/ANSWERS(S)✔✔Can /


/be /


/exchanged /


/for /


/Fiat/Real /


/currency /


/based /


/on /


/an /


/agreed //- /


/upon /


/value. /


/The /


/best /


/known /


/examples /


/of /


/this /


/are /