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1. Which of the following is a key feature of electronic currency?
a) Exists physically in coins and notes
b) Can be transferred electronically without physical cash
c) Can only be used in one country
d) Requires manual counting each time
b) Can be transferred electronically without physical cash
6. Which factor can make electronic currency risky to use?
a) Strong encryption
b) Poor internet security or weak passwords
c) Immediate confirmation of payment
d) Traceable transactions
b) Poor internet security or weak passwords
11. How does blockchain help secure cryptocurrency transactions?
a) By creating a public ledger that is very hard to alter
b) By storing all currency in one physical bank
c) By eliminating the need for encryption
d) By requiring users to carry physical coins
a) By creating a public ledger that is very hard to alter
16. Which of the following is an example of electronic currency?
a) Cash notes
b) PayPal balance
c) Cheques
d) Bank drafts
b) PayPal balance
3. Which of the following is NOT a type of electronic currency?
a) Cryptocurrency
b) Digital cash in e-wallets
c) Contactless payment cards
d) Gold coins
d) Gold coins
8. Which of the following is a potential consequence of losing access to your digital wallet?
a) Money can be instantly recovered without verification
b) Funds may be lost if backup or recovery options are not used
c) Banks will automatically reimburse all lost funds
d) Your wallet is converted into physical cash
b) Funds may be lost if backup or recovery options are not used
13. What is one difference between a digital wallet and a traditional bank account?
a) Digital wallets can store only physical cash
b) Digital wallets can store electronic money and are often app-based
c) Bank accounts never allow online payments
d) Digital wallets are always managed by governments
b) Digital wallets can store electronic money and are often app-based
18. Which is the BEST example of peer-to-peer e-currency transfer?
a) Sending money via mobile wallet to a friend
b) Depositing coins at a bank
c) Paying with paper notes
d) Writing a chequ
a) Sending money via mobile wallet to a friend ✅
2. Which of the following best explains why electronic currency is considered secure?
a) It is insured by banks automatically
b) It uses encryption and secure networks for transactions
c) It is impossible to steal
d) It does not need passwords
b) It uses encryption and secure networks for transactions
7. What is the main advantage of using e-wallets for international payments?
a) Payments are slower than traditional banks
b) Currency conversion is automatic and convenient
c) Physical cash is required
d) Payments cannot be tracked
b) Currency conversion is automatic and convenient
12. Which of these is a limitation of electronic currency?
a) Transactions are always instant
b) Requires devices and internet access
c) Cannot be stolen digitally
d) It works offline everywhere
b) Requires devices and internet access
17. What is the main advantage of electronic currency compared to cash?
a) It requires no internet access
b) It allows fast, online, and contactless transactions
c) It cannot be stolen
d) It has no security risks
b) It allows fast, online, and contactless transactions ✅
4. Which of these statements about cryptocurrency is true?
a) It is always controlled by central banks
b) It uses blockchain technology for secure transactions
c) It requires physical storage in banks
d) It is only used in large companies
b) It uses blockchain technology for secure transactions
9. What is a “contactless payment”?
a) A payment that requires scanning a QR code
b) A payment made without touching a card reader, usually via NFC
c) A payment made in cash
d) A cheque written electronically
b) A payment made without touching a card reader, usually via NFC
14. Why is encryption important in electronic currency transactions?
a) It ensures the transaction cannot be intercepted or tampered with
b) It prints physical receipts for every transaction
c) It makes cash faster
d) It avoids taxes automatically
a) It ensures the transaction cannot be intercepted or tampered with
19. What is the main difference between electronic currency and traditional money?
a) E-currency exists only in digital form
b) E-currency can be touched physically
c) Traditional money is always free of risk
d) E-currency does not need security
a) E-currency exists only in digital form ✅
5. One of the main differences between electronic currency and cash is:
a) Electronic currency is slower to use
b) Cash is easier to trace for tax purposes
c) Electronic currency allows instant online transactions
d) Cash cannot be stolen
c) Electronic currency allows instant online transactions
10. Which statement explains why businesses prefer electronic currency?
a) It reduces the need for physical cash handling and lowers theft risk
b) It is slower than cash payments
c) It always requires customers to visit the store
d) It removes all transaction fees
a) It reduces the need for physical cash handling and lowers theft risk
15. Which trend is most likely for electronic currency in the future?
a) A complete replacement of all forms of cash within a few years
b) Increased adoption for online and contactless transactions
c) A return to only using physical coins
d) Digital currencies becoming less secure over time
b) Increased adoption for online and contactless transactions
20. Which of the following is a government-backed form of digital money?
a) Central Bank Digital Currency (CBDC)
b) Bitcoin
c) Ethereum
d) Mobile gaming coins
a) Central Bank Digital Currency (CBDC) ✅