Podcast Beta
Questions and Answers
What is a primary advantage of electronic currency over traditional cash?
Electronic currency transactions are irreversible.
True
Name one example of electronic currency.
Bitcoin
A digital wallet is used to store _______ currency.
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Match the following terms related to electronic currency with their definitions:
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What type of technology underpins most electronic currencies?
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Electronic currencies can only be used for online purchases.
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What is the purpose of a digital wallet?
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Electronic currencies are often secured using _______ to validate transactions.
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Match the following electronic currency terms with their descriptions:
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Study Notes
Electronic Currency Advantages
- Electronic currency transactions can be irreversible. This is an advantage because it makes it more difficult for fraudsters to reverse transactions.
- One example of electronic currency is Bitcoin.
Digital Wallets
- A digital wallet is used to store electronic currency.
Electronic Currency Terms
- Blockchain: a distributed, public ledger that records cryptocurrency transactions.
- Cryptocurrency: a digital or virtual currency that uses cryptography for security.
- Digital wallet: a software program that allows users to store, send, and receive cryptocurrency.
- Mining: the process of verifying and adding new transactions to the blockchain, which is rewarded with cryptocurrency.
- Decentralization: the absence of a central authority or bank controlling the currency.
- Volatility: the rapid and unpredictable fluctuations in the value of cryptocurrency.
- Smart contracts: self-executing contracts stored on the blockchain that automate agreement terms.
Electronic Currency: Advantages
- Electronic currency transactions are irreversible.
- This makes electronic currency less susceptible to fraud and theft compared to traditional cash.
- Electronic currency transactions can be easily tracked and monitored.
- This makes it more difficult to engage in illegal activities like money laundering.
Electronic Currency: Examples
- One example of electronic currency is Bitcoin.
Digital Wallets
- A digital wallet is used to store electronic currency.
- It is a software program used to manage and store electronic currency.
Terminology: Electronic Currency
- Blockchain: A distributed database that stores information about electronic currency transactions.
- Cryptocurrency: A type of digital currency that uses cryptography for security purposes.
- Digital Wallet: A software program used to store and manage electronic currency.
Electronic Currency: Technology
- Most electronic currencies rely on blockchain technology.
- Blockchain is a decentralized and transparent ledger of all transactions.
Electronic Currency: Use Cases
- Electronic currencies can be used for online and offline purchases.
- They can also be used for other purposes, such as sending and receiving money.
Electronic Currency Security
- Electronic currencies are often secured using cryptography.
- This is used to ensure the security and integrity of transactions.
Electronic Currency Terminology: Definitions
- Cryptocurrency: A type of digital currency that uses cryptography for security.
- Blockchain: A distributed ledger system for recording transactions.
- Decentralized: Not controlled by a single entity. Transactions are peer-to-peer.
- Digital Wallets: A software program used to store and manage electronic currency.
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Description
This quiz explores key concepts related to electronic currency, including its advantages over traditional cash and examples of electronic currencies. Test your knowledge on important terms and definitions associated with digital wallets and online transactions.
