Cambridge IGCSE · Computer Science (0478)

Digital currency: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Digital currency.

10 questions23 marksFree, no account

Question 1

1 mark

Which of the following best defines the concept of a digital currency?

Question 2

1 mark

What role does time-stamping play in a blockchain ledger for digital currency?

Question 3

1 mark

Which of the following best explains why a blockchain is described as "distributed" in most digital currency systems?

Question 4

1 mark

Which statement best describes a key characteristic of the records held within a blockchain?

Question 5

1 mark

Why is blockchain referred to as a "distributed ledger" in the context of digital currency?

Question 6

2 marks

State the primary characteristic that distinguishes a digital currency from traditional physical currency.

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Question 7

4 marks

Explain why a blockchain is referred to as a "time-stamped series of records that cannot be altered."

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Question 8

6 marks

In the context of digital currency, explain how a decentralized digital ledger prevents the "double-spending" problem without a central authority.

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Question 9

2 marks

Digital currencies are becoming more common in global finance.

a) Define the concept of a digital currency.
b) State one characteristic of a digital currency that distinguishes it from traditional physical currency.

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Question 10

4 marks

A blockchain is used to track digital currency transactions.

a) Explain why a blockchain is considered to be immutable (cannot be changed).
b) Describe the role of a digital ledger in the context of digital currency.

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