JSS 1 Business Studies Flashcards: Meaning, Types, Benefits and Risks of Digital Currency

Question 1

What is digital currency?

Accepted Answer

value stored and transferred in electronic form

Question 2

The eNaira is issued as a liability of ____.

Accepted Answer

a central bank

Question 3

Nigeria’s central bank digital currency is called the ____.

Accepted Answer

eNaira

Question 4

A privately created digital currency secured with cryptography is a ____.

Accepted Answer

cryptocurrency

Question 5

Digital currency differs from cash because it has no ____ form.

Accepted Answer

physical

Question 6

A learner installs a digital-wallet app on a ____.

Accepted Answer

smartphone

Question 7

What is a digital wallet used for?

Accepted Answer

storing access details and making digital payments

Question 8

One benefit of digital currency is ____.

Accepted Answer

fast electronic transfer

Question 9

Digital records can make payments easier to ____.

Accepted Answer

trace

Question 10

A thief obtains the wallet password. The immediate risk is ____.

Accepted Answer

loss through unauthorised access

Question 11

Rapid changes in a cryptocurrency’s price show ____.

Accepted Answer

volatility

Question 12

A fake digital-currency investment offer is a form of ____.

Accepted Answer

fraud

Question 13

Before approving a digital-currency payment, what two details should the buyer verify?

Accepted Answer

the recipient and amount

Question 14

Why should a wallet recovery phrase remain private?

Accepted Answer

It may give control of the wallet.

Question 15

A wallet requires a password plus a second proof of identity. This safeguard is ____.

Accepted Answer

multi-factor authentication

Question 16

Why should digital-wallet software be updated?

Accepted Answer

to receive security fixes

Question 17

An online advert promotes a coin the learner has never heard of. The sensible first response is to ____.

Accepted Answer

research its risks and legitimacy

Question 18

A payment cannot be reversed easily. What habit becomes essential?

Accepted Answer

checking all details before approval

Question 19

A digital currency that is a direct liability of a central bank is a ____.

Accepted Answer

central bank digital currency

Question 20

An offer promises to double digital currency overnight. How should a responsible user treat it?

Accepted Answer

treating the offer with suspicion

Strong work.