Chapter 37 — Quiz

Q1. Bitcoin fails as money primarily because: a) It's illegal b) It's too volatile (poor store of value), too slow (poor medium of exchange), almost never used to price goods (poor unit of account) c) There's not enough of it d) It's too complicated Q2. Stablecoins differ from Bitcoin in that they: a) Use blockchain b) Are designed to maintain a stable value ($1 peg) c) Are decentralized d) Were invented first Q3. A CBDC is: a) A private cryptocurrency b) Digital money issued by a central bank c) The same as Bitcoin d) A stablecoin Q4. The U.S. free banking era (1837–1864) was characterized by: a) Stable money b) Hundreds of banks issuing their own notes; chaotic and fraud-prone c) A gold standard d) No banks

SA1. Why is Bitcoin a poor medium of exchange? SA2. What caused the TerraUST collapse? SA3. What are the potential benefits and risks of CBDCs?

TF1. Bitcoin has replaced fiat money for everyday transactions. (T/F) TF2. All stablecoins are safe because they're pegged to the dollar. (T/F) TF3. Crypto is a new asset class whose long-run applications are still uncertain. (T/F)

Selected answers in appendices/answers-to-selected.md.