About this Study Set
This study set covers Financial Literacy through
20 practice questions.
An introduction to how digital money works, blockchain technology, and the history of cryptocurrency for students. Every question includes the correct answer so you can learn as you go — pick any format above to get started.
Questions & Answers
Browse all 20 questions from the
Understanding Digital Currency study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
What is the name of the first decentralized cryptocurrency ever created?
-
A
Bitcoin
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B
Ethereum
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C
Litecoin
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D
Dogecoin
2
What is the digital record-keeping technology that tracks cryptocurrency transactions called?
-
A
The Internet
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B
Blockchain
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C
A bank ledger
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D
A cloud database
3
Who is credited with creating Bitcoin under the pseudonym Satoshi Nakamoto?
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A
Elon Musk
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B
Bill Gates
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C
An unknown person or group
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D
Vitalik Buterin
4
What do we call the process of using powerful computers to solve complex math problems to verify transactions on a network?
-
A
Mining
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B
Printing
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C
Staking
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D
Downloading
5
Unlike physical money like coins and notes, where is cryptocurrency stored?
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A
In a physical piggy bank
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B
In a digital wallet
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C
In a metal safe
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D
Under a mattress
6
What is the main difference between traditional money and cryptocurrency?
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A
Cryptocurrency is always made of gold
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B
Cryptocurrency is managed by a central bank
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C
Cryptocurrency does not need a central authority like a bank
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D
Traditional money is always digital
7
What is the term for a single unit of Bitcoin?
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A
A cent
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B
A satoshi
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C
A dollar
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D
A byte
8
What prevents people from spending the same digital money twice in a cryptocurrency network?
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A
A central government agency
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B
The blockchain ledger
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C
A security guard
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D
A paper receipt
9
Which of these is a common feature of most cryptocurrencies?
-
A
They are physically printed
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B
They are decentralized
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C
They are controlled by a king
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D
They are only used in Australia
10
What happens to a cryptocurrency transaction once it is added to the blockchain?
-
A
It can be easily deleted
-
B
It becomes permanent and irreversible
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C
It is sent to a bank for approval
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D
It disappears after 24 hours
11
What is a 'public key' used for in a cryptocurrency transaction?
-
A
To unlock your house
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B
To receive funds from others
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C
To change the price of the coin
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D
To delete your history
12
What do we call the market price of a cryptocurrency that changes based on supply and demand?
-
A
Fixed rate
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B
Interest rate
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C
Exchange rate
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D
Valuation
13
What is a 'private key' in cryptocurrency?
-
A
A code that acts like a password to access your digital funds
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B
A physical key to a storage unit
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C
A public message sent to everyone
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D
A type of digital coin
14
Which entity typically controls the issuance of standard government currency?
-
A
The public
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B
A central bank or government
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C
Private corporations
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D
The blockchain
15
What is the purpose of a digital wallet in the world of cryptocurrency?
-
A
To shop in a physical grocery store
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B
To store the keys needed to access and manage digital currency
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C
To convert gold into digital coins
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D
To print paper versions of the coins
16
What does it mean for a cryptocurrency to be 'decentralized'?
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A
It is controlled by one person
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B
It is controlled by many computers globally rather than a single authority
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C
It is only used in one city
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D
It has no value at all
17
What is the name of the 'smart contract' platform that is often used for creating decentralized applications?
-
A
Ethereum
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B
Amazon
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C
Google
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D
Facebook
18
Can cryptocurrency be sent to someone in a different country instantly?
-
A
No, it takes a month
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B
Yes, over the internet
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C
Only if the government allows it
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D
Only via the postal service
19
What is a 'cold wallet' in the context of cryptocurrency storage?
-
A
A wallet kept in a freezer
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B
A wallet stored on a device disconnected from the internet
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C
A wallet made of blue plastic
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D
A wallet held by a bank teller
20
Which of these is NOT a function of cryptocurrency?
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A
A medium of exchange
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B
A store of value
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C
A physical coin for coin-operated rides
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D
A digital asset
