Cryptocurrency Fundamentals Certification Exam
1. Cryptocurrencies have which characteristic?  
  Controlled Supply
  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.  
5. Solving the potential problem of double payment (duplicate transactions using the same unit of cryptocurrency) is the primary factor that makes cryptocurrency possible.   
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?  
8. Coin miners mine the metal used to make Bitcoins and other cryptocurrencies?   
9. Virtual currency and Digital currency both are forms of Cryptocurrency.  
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.  
14. Compared to credit card transactions, payments made using a cryptocurrency incur larger merchant and transaction fees.   
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.  
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.   
21. In August of 2013 the US Senate Committee studying cryptocurrencies asked which of the following agencies for information?  
  Homeland Security
  Federal Reserve
  All of the above
22. The US Commodity Futures Trading Commission has already drafted regulations for cryptocurrencies.  
23. It is possible that All Cryptocurrency coins can have the same value.   
24. All of the following are types of cryptocurrency wallets except __________ .  
25. Cloud hosted wallets can be accessed from anywhere on the Internet.  
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.  
37. Keeping all my cryptocurrencies on an exchange's website is as safe as keeping it in the bank.  
38. Cryptocurrency transactions are as easy as sending an email.  
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  
42. Cryptocurrency addresses can be used in which of the following:  
  On a mobile device
  On a computer
  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
  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.  
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.  
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.  
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 ___________.  
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
  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  
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 _________  
  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
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
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.  
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.  
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 _________ .  
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
  Limited in quantity
  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  
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  
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
  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