Cryptocurrency Fundamentals Certification Exam 1. Cryptocurrencies have which characteristic?     Controlled Supply   Privacy   Decentralization   All of the above 2. How can you best describe cryptocurrency?      Cash for internet transactions   A new form of money   Payment network for the internet   All of the above 3. Cryptocurrency is?     Regulated by the government   Verified by the banking system   Designed so that no trust is needed   A new world currency 4. You need a password to unlock your cryptocurrency wallet.     True   False 5. Solving the potential problem of double payment (duplicate transactions using the same unit of cryptocurrency) is the primary factor that makes cryptocurrency possible.      True   False 6. The fundamental characteristics of Cryptocurrency are:     Valuable, Free, Interchangable, Verifiable and Unlimited   Decentralization, Privacy, Unlimited Transactions, Controlled Supply, and Transparent   Privacy, Decentralized, Unlimited Transactions,Transparent and Governed   Digital, Controlled Supply, Privacy, Decentralized and Transparent 7. Cryptocurrencies have been around since?     1970   1980   1990   2000   2010 8. Coin miners mine the metal used to make Bitcoins and other cryptocurrencies?      True   False 9. Virtual currency and Digital currency both are forms of Cryptocurrency.     True   False 10. Cryptocurrency can be best described as:     A new form of money   Payment network for the internet   Currency for internet transactions   Programmable Money   All of the above 11. Which of the following attributes could NOT be used to describe cryptocurrencies?      They use a decentralized control system   Users can mostly remain anonymous   Transaction fees are very low   They cannot be used in international transactions   They can all be used 12. Which of the following statements could NOT be used to describe cryptocurrencies?     They cannot be used in international transactions   Transaction fees are very low   They use a decentralized control system   Users can remain anonymous   All statements can be used to describe cryptocurrencies 13. One significant difference between credit card transaction fee's and payments made using a cryptocurrency is that the credit card fee's are generally much greater.     True   False 14. Compared to credit card transactions, payments made using a cryptocurrency incur larger merchant and transaction fees.      True   False 15. Cryptocurrencies receive their value in all of the following ways except _____________.     A cryptocurrency's price is determined by the FOREX (Foreign Exchange Currency Market).   Each cryptocurrency has a value based on its confinence in the open exchange market for cryptocurrencies   There is a perceived value based on the buyer’s confidence in its growth potential   Since the supply is ultimately fixed and has limited availability, the price is primarily a function of demand. 16. The Solving of which problem was the primary factor that made cryptocurrency possible.     Tracking a transaction   Verifying a transaction   Verifying the currency's origin   Verifying that the currency is legitinate   Preventing double spending 17. What is the maximum number of bitcoins that will ever be issued?      99 Million   56 Million   21 Million   17 Million   10 Million 18. All Cryptocurrency coins have the same value.     True   False 19. Who in the United States is charged with monitoring cryptocurrencies?     The department of justice   The US treasury   The Federal Reserve   US Commodity Futures Trading Commission 20. Payments of cryptocurrencies can be denominated in fractional amounts; prices need not be quoted in whole numbers.      True   False 21. In August of 2013 the US Senate Committee studying cryptocurrencies asked which of the following agencies for information?     Homeland Security   Federal Reserve   CIA   FBI   All of the above 22. The US Commodity Futures Trading Commission has already drafted regulations for cryptocurrencies.     True   False 23. It is possible that All Cryptocurrency coins can have the same value.      True   False 24. All of the following are types of cryptocurrency wallets except __________ .     Software   Hardware   Mobile   Biometric   Paper 25. Cloud hosted wallets can be accessed from anywhere on the Internet.     True   False 26. "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it!" is a statement made by which of the following?     Thomas Jefferson   Benjamin Franklin   Albert Einstein   Warren Buffet   Bill Gates 27. Cryptocurrency wallets have which of the following attributes?     They have QR code scanning capabilities   They have graphs, charts, and statistics   They allow you to balance your accounts and make transactions   1 and 3 but NOT 2   All of the above 28. What would likely have happened had cryptocurrencies been introduced in the 1970's?     There would be many more millionaires   We would not have experienced the 2008 financial crisis   Bitcoin would have replaced several traditional currencies   Cryptocurrencies would have likely failed   1 and 2 and 3 29. Before you can acquire any cryptocurrency you must first ___________.     Have a bank account   Register with the US Treasury   Have a cryptocurrency wallet   Get a note from your mother   1 and 2 and 3 30. You can buy Cryptocurrency from everyone except __________ .     An individual that has cryptocurrency to sell   A business that has cryptocurrency to sell   A cryptocurrency ATM machine   Any bank   A Cryptocurrency exchange 31. Some of the advantages for merchants in accepting cryptocurrencies are _____________.     Lower tranaction processing fees than credit cards   No charge backs   Funds are transferred almost instantly   Cryptocurrencies work almost like "electronic" cash   All of the above 32. Once you have purchased your Cryptocurrency, which of the following will apply     The amount that you purchased will show up in tour bank account.   The company or person that you made the purchase from will send you a receipt.   You cryptocurrency will be shipped to you   Your currency will show up in your cryptocurrency wallet   None of the above 33. Complete the following with the most true statement. You must _____________.     have a license with the SEC to sell cryptocurrencies   be registered with the IRS to buy any cryptocurrency   have a computer to buy or sell cryptocurrencies   All of the above are required   None of the above are required 34. Cryptocurrencies can be bought AND sold or purchases made using which if any of the following methods.     face-to-face with individuals using computers or mobile devises   long distance with companies using computers or mobile devises   long distance with individuals or companies using FEDEX, UPS or USPS   1 and 2 but NOT 3   All of the above 35. When you use the direct trade option which of the following, if any, are NOT true>     You can post an offer to sell your cryptocurrency on a trading site.   The website will notify you when a buyer wants to trade with you   You must register with the trading site and provide information to verify your identity.   You transfer your currency to the trader and let them trade for you   None of the above are NOT true 36. The markets require more proof of identity information from the Sellers of Cryptocurrency than from the buyers.     True   False 37. Keeping all my cryptocurrencies on an exchange's website is as safe as keeping it in the bank.     True   False 38. Cryptocurrency transactions are as easy as sending an email.     True   False 39. If Alice sends some bitcoins to Bob, that transaction will have three pieces of information. The three pieces of information are _________.     An input, a code, and directions   An input, an amount, and output   An input, a timeline, and restrictions   An input, an address, and a message 40. To send cryptocurrencies you need which two things?     A Cryptocurrency address, and a private key   The dollar amount, and instructions   Country of origin, and who's sending it   A mailing address, and the person’s name receiving it 41. Every cryptocurrency transaction has an independent and separate signature     True   False 42. Cryptocurrency addresses can be used in which of the following:     On a mobile device   On a computer   Online   1 and 2 but NOT 3   All of the above 43. A technology patented in 1984 that provides identification of users by means of the combination of two different components is called __________.     Two Step Verification   Dual Password Protection   Two Factor Authorization   Dual Verification   Two Factor Security 44. Which of the following statements, if any, are true about cryptocurrencies?     There are no chargebacks   Transactions occur almost instantly   Cryptocurrencies have a push payment system   None of the above   All of the above 45. a permissionless distributed database based on the bitcoin protocol that maintains a continuously growing list of transactional data records hardened against tampering and revision id called the __________.     Block data system   Block protocol   Block Ledger   Blockchain   None of the above 46. Which of the following statements,if any, defines mining of cryptocurrencies ______________.     1) a process that adds transactions to the public ledger   2) a process that verifies transactions in the public ledger   3) a process that generates proof-of-work currencies like bitcoin   4) a process that generates proof-of-stake currencies   1, 2 and 3   1, 2 and 4   All of the above   None of the above 47. Hashcash is described as: __________________________     1) a confirmation method   2) was first used to prevent email spam   3) a part of the blockchain confirmation procedure   1 and 3 but NOT 2   All of the above 48. Currently all cryptocurrencies are produced by either the proof-of-work method or the proof-of-stake method.     True   False 49. Someone mining cryptocurrencies as an individual on his/her own computer ls called _____________.     Individual mining   Solo mining   Single source mining   Single computer mining 50. It is easy to get rich mining cryptocurrencies.     True   False 51. Some ways to protect and secure your cryptocurrencies are ____________.     1) Use an offline or downloaded wallet   2) Encrypt your downloaded wallet   3) Use a paper wallet   4) keep a back up of you wallet   5) Keep safe and do not share your keys or passwords   Only #3 is not true   All of the above are true 52. Since cryptocurrency transactions cannot be reversed like credit cards, this makes the transactions much like "electronic" cash.     True   False 53. Which of the following statements about Satoshi Nakamoto,if any, are true. Satoshi Nakamoto is _____________.     1) a man   2) a woman   3) a group of people   4) the name that has been given credit for developing the Bitcoin protocol   All of the above 54. The first release of the Bitcoin protocol software was in ___________.     1980   2008   2009   2010   2011 55. MONEY and CURRENCY share all of the same characteristics except one. From the list below select the one characteristic that is unique to MONEY.     A medium of exchange   A unit of measure   Portable   Durable   Fungible   A store of value over time 56. When rulers or governments debase their currency or print more currency, which of the following results?     1) Prices rise   2) Wealth is transferred from the public to the government   3) The value of the currency is reduced   4) The currency supply is reduced   Only 2 and 3 Result   Only 1 and 4 Result   Only 4 does NOT Result   All Result 57. Historically, ALL fiat currencies have failed end have returned to a zero value     True   False 58. A very important characteristic of both MONEY (and CURRENCY) that is necessary for it to be a medium of exchange and unit of account is its ability to exist in equal units of value. That is a "dollar" in your pocket equals a "dollar" in someone else's pocket. This characteristic is called _________     Divisibility   Durability   Fungibile   Portable   Store of Value 59. When Governments corrupt their currency which of the following is NOT true.     Prices of goods and services become cheaper   The supply of paper currency increases   The quality of their gold or silver coins is debased   The value of their currency declines   Economic uncertainty and ultimately turmoil ensues 60. When ever an economic crisis occurs which of the following will NOT be true.     The money will have been coruppted   The government will be recognized as the real source of the problem   The public will look to the government for solutions   The only options will be to either default on the debt or continue the inflation   Money or free markets will be blamed for the crisis 61. Which of the following statements is TRUE regarding the early existance of standardized coinage/     1) The country of Lydia is one of the places where standardized coinage originated   2) Standardized coinage is believed to have originated 580 to 530 bc   3). Was a critical factor in the rise of Athens as an Empire   Only 1 and 3 are True   Only 2 and 3 are True   Only 1 and 2 are True   All of the above are True   None of the above are True 62. Which is NOT one of the "Seven Stages of Empire"?     Growth of a massive military   Large amounts of money being spent on public works and social programs   Loss of fiath in the currency   Debasement of the currency   Deflation of the currency   Currency crisis   Sound money   War 63. According to the video, when an economic crisis finally results do to the corruption of the currency and the people begin to loose faith in the currency and in the government, and fear and panic begin to take over, to what two dangers do the society and the country become extremely vulnerable.     1) Civil war   2) The rise of a dictator   3) A louder cry for 'Collectivism'   4) Finding a 'scapegoat' country or other situation to blame   5) Over throw of the government   1 and 2   2 and 3   3 and 4   4 and 5   2 and 4   3 and 5 64. According to the video, in order for maximum prosperity to be achieved 4 conditions need to exist. Which of the following conditions is NOT one of the conditions necessary to achieve maximum prosperity,     Individual freedom   Free markets and access to them   Sound stable money   Collectivism   Capitalism 65. There is currently an effort by a newly formed alliance of countries to provide alternatives to the US Dollar as the ONLY reserve currency used in international trade and introduce other currencies that are asset backed that can also be used to conduct international trade. The name of the alliance "BRICS" is formed from the first letters in the names of the countries countries that found the alliance. Those founding countries in "BRICS" alliance are________.     Britain, Russia, India, China, Souht America   Bolivia, Russia, India, China, South America   Brazil, Russia, Indonesia, China, South Africa   Britain, Russia, India, Chile, South Africa   Brazil, Russia, India, China, South Africa   Bolivia, Romania, Iran, Chile, South Africa 66. The banking system used to handle international trade transactions and money wire transfers is called the ___________ system.     Sucre   Swift   Fast   Swap   IMF 67. The Federal Reserve was contracted to expand or contract the supply of a single national currency called _________ .     The US Dollar   The Federal Reserve Note   The US Treasury Note   The Federal Reserve Dollar   The Green Back Dollar 68. In the video, the following quote appeared: "I have sworn upon the alter of the eternal God eternal hostility against every form of tyranny over the mind of man." Who said this?     George Washingtom   Benjamin Franklin   Andrew Jackson   Alexander Hamilton   Thomas Jefferson 69. The video marked a certain event as very significant in the acceleration of the decline of the US Dollar, that event was _______.     1941 Bretton Woods Agreement   1971 President Nixon removes gold backing of the US Dollar   2000 Iraq sells oil in Euros incited of US Dollars   2008 World Finanxial Crisis   2010 Iran end oil sales in US Dollars 70. The practice whereby banks are able to create new money by being able to create loans equal to 10 times (or more) the amount of their assets and cash that they have on deposit is called _____________     Excess Lending   Reserve Lending   Reserve Banking   Fractional Reserve Lending   Fractional Reserve Banking 71. According to the video there were 4 reason or indicators that there would be a period of "deflation" followed by "hyperinflation". Which of the following is NOT a reason or indicator of this expected phenomenon.     Over reaction to the 2008 crisis creating a credit/debt bubble   When a "bubble" bursts, what happens is always opposite of what would be the greatest benefit for the most people.   The "Baby Boom" Demographic Disaster   The Bank Liquidity Cycle   The convergence of Cycles 72. The Convergence of Cycles indicator of coming "deflation" includes all of the following except _________.     The Wealth Distribution Cycle   The Stock Market PE Ratio Cycle   The Kondratiev Wave   The East / West Cycle   Household debt as a % of disposal income   The Shift in World Monetary System (from asset backed or sound currency to fiat currency)   The Volume of Imports to Exports Cycle 73. The TRUE definition of "Inflation" according to the video is _____________,     Rising prices   Decrease in the value of the currency   An expansion of the currency supply   Falling prices   Increase of the value of the currency 74. Before standardized coinage became the norm in currency commodities were used as mediums of exchange. The video referred to these as "commodity monies". Which of the following was NOT presented in the video as an example of "commodity money"?     1) Salt   2) Cacao beans   3) Whale teeth   4) Yak dung   5) Cowry shells   All but #1 were used   All but #4 were used   All but #1 and $4 were used   ALL were used as examples of commodity monies   NONE were used as examples of commodity monies 75. The tax dollars that we pay are used to _________.     Pay for roads bridges and schools   Pay the principle and interest pn loans made to the US Treasury by the Federal Revere Bank from an account the has no money.   Pay for Government programs   Pay off the national debt 76. Which of the following is NOT a characteristic of a commodity money?     1) Relatively scarce   2) Easily recognizable   3) Can be divided into smaller parts of equal value   4) Pieces have equal value   5) Portable   6) A store of value   All are True 77. What steps can you take to help to end the systematic enslavement to the current banking system.     Educate yourself   Help to educate others   Encourage other to educate themselves   Share this information with others   All of the above 78. Which of the following statements about MONEY, if any, is TRUE?     Money does not originate with governemnts   Money arises naturally as markets develop   Both are TRUE   Neither is TRUE 79. Which of the following statements, if any, is NOT AS TRUE as the rest about the combining of lesser base metals with gold or silver.     This process allows the government / king to produce more coins   Each coin has a lesser real value relative to the percentage of gold or dilver   This process creates more money   This process creates more currency   The process is called debasement   All are True 80. Which of the following describes the Federal Reserve?     A privately owned bank created in 1913   A privately held bank created in 1907   A privately held bank created in 1812   A US Government run banking agency created in 1913 81. The Federal Reserve was contracted to expand or contract the supply of a single national currency called _________ .     The US Dollar   The Federal Reserve Note   The US Treasury Note   The Federal Reserve Dollar   The Green Back Dollar 82. Originally the US Dollar was tied to the price of gold set at $35 per ounce until it was removed from the gold standard by ____________.     President Roosevelt in 1933   Presiden Truman in 1944   Pewsident Kennedy in 1963   President Nixon in 1971   President Carter in 1978 83. The REAL problem is that...We continue to look to the same Government and banking system to solve our financial problems, foolishly expecting them to change a flawed system that they designed to give themselves the advantage in the first place.     True 84. NEW currency is created by ______________ .     1) Government issued bonds (IOUs) that are purchased bt banks, some of which are sold to the Federal Reserve who pay for them by writing a check (IOU) from an account that has a $0 balance   2) Fractional Reserve Banking which enables the banks to lend 10 times more than they have on deposit   3) The US Treasury printing money   2 and 3   1 and 3   1 and 2   All are True 85. Since 1913 the US Dollar has decreased in value by _________ .     10%   50%   72%   89%   96% 86. Which of the following statements about 2008 financial crisis is NOT True?     The banks who sold these loans received heavy fines and the bankers who sold these loans went to jail.   Banks packaged and sold bad loans to other banks.   $16 trillion in household wealth in the US was lost.   Banks forclosed on approximately 1 million homes in the US   Banks made loan to people that were not qualified based on their ability to repay the loan.   The banks who sold these loans were, for the most part, bailed out by the US Government and the bankers received bonuses. 87. Which of the following statements about a banking law passed by congress in 2014 and NOW in effect, if any, are NOT true?     1) Due to their use in the 2008 financial crisis, banks can no longer create "derivatives" and "credit default swaps" to cover bad loans.   2) Banks will no longer be bailed out by the US Governement for bad loans but can cover these bad loans by taking moey from their depositors accounts without notice.   Both statements are NOT True   Both statements ARE True 88. Throughout history whenever there is a new innovation the same tactics are employed as were experienced with the introduction of the automobile. When ever new innovations arise, those who are currently in power and who are most likely to experience a loss of market share and control will employ several tactics to try to remain in control. Some of those tactics used are _____________.     1) Ridicule the innovation   2) Try to discredit the innovators and destroy public confidence   4) Embrace any innovation that has a real benefit and value for the economy and the public at large   1 and 2, but NOT 3 and 4   3 and 4 but NOT 1 and 2 89. Whenever new innovations arise, those in power who would be most suffer a loss in income or market share and power or control will often employ tactics to remain in control, Some of thos tactics are _____________,     1) Ridicule the innovation   2) Try to discredit the innovators and destroy public confidence   3) Try to influence law makers to pass laws that would regulate, restrict, tax or otherwise make difficult for the innovation to succede.   4) Embrace any innovation that has a real benefit and value for the economy and the public at large   1 & 2, but NOT 3 & 4   3 & 4 but NOT 1 & 2   1, 2 & 3 but NOT 4   4 but NOT 1, 2 & 3 90. When the automobile was first being introduced to the market, the leaders of certain industries who felt threatened financially by this new innovation, influenced law makers to pass legislation that industries who felt threatened financially by this new innovation, influenced law makers to pass legislation that would regulate or otherwise make it difficult for the emerging auto industry. Which industry or industries in the list fought the introduction of the automobile.     1) Telegraph   2) Railroad   3) Horse breeders   4) Stage Coach   5) Wagon and buggy makers   1 and 3   2 and 5   2 and 4   3 and 5 91. When Gutenberg invented the printing press, rulers and those in political power along with the Catholic Church tried to prevent its use in order to protect the public from dangerous ideas. Which of the following statement about that era are NOT TRUE?     1) Use of the printing press and the book and documents produced were taxed heavily. This made books very expensive so that many people could not afford them.   2) Some countries made printing a crime punishible by death   3) Before the printing press the were estimated only 30,000 books world wide   4) 15 years after the printing press there were estimated over 10 million books world wide   2 and 3 are NOT True   All are True 92. Which of the following statements about Bitcoin are NOT true.     Bitcoin is based on mathematical truths which stand alone.   Bitcoin is both digital currency and computer software.   bitcoins are virtual currency (digital money) created, stored, exchanged, and transferred entirely and exclusively on the Bitcoin network.   The Bitcoin is a software program and protocol running thousands of computers around the world on a shared network connected via the internet   Although very difficult, bitcoins can be corrupted or counterfitted.   Bitcoins cannot be controlled bu any one government, individual, business or financial entity.   bitcoin transaction are recorded in a public ledger distributed and duplicated on each computer on the Bitcoin network that is called the Blockchain,. 93. Bitcoin and other forms of money have all the same identifiable qualities except _____________     divisibility into smaller units of equal value   Portability   Limited in quantity   Recognizable   The can be stored securely in a safety deposit box   Their value depends on both acceptance and, the factors of supply & demand 94. Which of the following statements regarding bitcoin and other REAL cryptocurrencies are NOT TRUE?     Their value cannot be debased by creating more.   Because governments cannot control it, and it is currently untraceable in the banking system, it may not be directly subject to taxes until converted to local currency.   There a little, if any transaction fees.   Transactions with bitcoins and other cryptocurrencies are are TOTALLY anonymous..   There can be NO charge backs   They work like electronic cash.   All are True 95. It is estimated that there are approximately _________ people in the world without a bank account/     500 million   1 Billion   1.5 Billion   2 Billion   2.5 Billion   3 Billion   5 Billion 96. With bitcoin or other cryptocurrencies and internet access, a mobile phone can effective become a "bank" with access to the global market place from virtuall anywhere in the world. T/F     True   False 97. Which of the following statements about sending money around the world with bitcoin or other cryptocurrencies, if any, is NOT TRUE?     It is faster   It is less complicated   It is cheaper   It is accepted any where in the world   All are True 98. A concern with a bitcoin or other cryptocurrency wallet is the same as with a traditional bank account, that the government or the IRS can freeze your account or seize funds from your account at any time. T/F     True   False 99. The Blockchain technology upon which cryptocurrencies have evolved with it unique transaction identification quality could have many more real world applications. In which of the following industries could we see this technology used in the future.?     Mortgage and financing   Land and deed yiyles   Legal contracts   Automobile titles and other "proof of ownership" application   All of the above 100. Which of the following attributes of bitcoin or Blockchain transactions is NOT accurate?     Global access   Secure   Nearly instant   Very low or no cost tranactions   Accepted in all countries   All are accutate 101. Which of the following does NOT represent a realistic future possibility with cryptocurrency or Blockchain technology?     1) Payments without middlemen   2) Investments without a broker   3) Loans without a bank   4) Insurance without an underwriter   5) Escrow without an agent   All are realistic possibilities   2 and 4   3 and 5