AnswersFL-2102371-Personal Finance and Money ManagementElectronic Transactions and Digital Currency

Electronic Transactions and Digital Currency Answers

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Read the scenario.Elena is an artist who wants to offer online art classes. She needs a system that automatically gives access to class materials when someone pays and enforces agreements for using her artwork.Why does Elena choose to use digital currency for her online art business?

A
Elena can use digital currency to easily keep track of her art supplies.
B
Digital currencies use smart contracts to make payments automatic and sales easier.
C
Elena can check each digital currency payment by herself to stay in control of her currency.
D
Digital currency payments make it easy to pay with physical bills.
2
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In which scenario would using a digital wallet be the most advantageous?

A
Alan is paying his roommate for shared rent expenses using a physical check.
B
Luke is contributing to an office gift by paying a colleague.
C
Zack needs to pay the bus fare where only cash and card are accepted.
D
Greg is shopping online at a retailer that gives loyalty rewards for using their app.
3

Read the scenario.Katerina is an international consultant who needs to make quick and easy payment transfers between different countries. She wants a payment method that avoids high currency exchange rates and reduces transfer costs.Why did Katerina choose to use digital currency for her international consulting payments?

A
It can go directly into bank accounts without extra steps.
B
Its value stays the same, making her accounting easy.
C
It is limited to certain countries, making it exclusive to those countries' services.
D
It offers fast, lower-cost international payments without currency conversion and bank fees.
4

In which of these scenarios is Peer-to-Peer (P2P) the best payment method?

A
Trish is buying textbooks from an online store.
B
Felix is paying for parking at an unmanned terminal.
C
Ted is lending money to a friend in another city for an emergency.
D
Lucy is paying for a monthly subscription service.
5

Read the scenario.Sylvia lives in a place with high inflation, so her local money's value drops fast. She wants to preserve her savings.Why is it best for Sylvia to use digital currency in this scenario?

A
It stops her savings from losing value due to inflation.
B
It tracks transactions openly with technology.
C
It lets her get her money anytime, day or night.
D
It lets her send money fast to others without waiting for banks.
6

Read the scenario.Jerrod is at an electronics store, planning to buy a new laptop. He wants to track his spending and earn rewards points as a loyal customer.Why might it be best for Jerrod to use a digital wallet to buy the laptop?

A
They give instant refunds on returns.
B
They guarantee to match prices with other stores.
C
They put payment methods and rewards together in one app.
D
They mostly use E-checks to transfer funds.
7

Read the scenario.Hans, a freelance graphic designer, works with clients from different countries. He needs a good way to get paid without high fees.Why is digital currency the best option for Hans to receive payments?

A
It can go straight into Hans' local bank.
B
It uses physical money for transactions.
C
It keeps payments anonymous and lowers international fees.
D
It makes sure Hans' payments come first over other methods.
8

Read the scenario.An online store does not follow the rules for keeping credit card details safe, so they accidentally make customers' private info public.What would most likely happen in this scenario?

A
The company that gave out the credit card will be blamed.
B
The online store might get fined and have to improve security.
C
Customers have to pay for any fraudulent charges.
D
Nothing bad if they fix the leak quickly.
9

What is a primary benefit of online bill payments compared to traditional methods?

A
You get your money right away.
B
You can send a check by mail just in case.
C
It takes a few days for the money to go through.
D
You can stick to the bank's hours for paying.
10

Read a description of traditional banking.Banks follow government rules to protect their customers' money. They issue separate cards for checking and savings accounts to help individuals manage funds and add security. Banks also handle foreign currency exchanges for international travel and transactions.How is traditional banking different from digital wallets?

A
Digital wallets require internet access, while traditional banking does not.
B
Digital wallets can store multiple card information, while traditional banks do not.
C
Digital wallets are regulated, whereas traditional are not.
D
Traditional banks only process transactions in local currency, but digital wallets do not.

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