Blockchain Applications Across Key Industry Sectors BBLC Practice Questions (Page 7)

Questions 31–35

1. 31foundation · easy

   In trade finance, which problem is most directly addressed by blockchain's ability to provide a single, shared, and tamper-evident record of a trade transaction?

   • AInsufficient credit lines for small exporters
   • BCurrency exchange rate fluctuations
   • CLack of transparency across multiple parties
   • DHigh cost of physical document courier services
   Reveal Solution Discussion Select an answer first
2. 32expert · hard

   A regulatory auditor requires a company to prove that its reported import volumes match actual shipments. The company currently uses a blockchain to record shipment data, but the auditor is concerned that data could be entered incorrectly at the source. Which additional control would most effectively address the auditor's concern?

   • ARely on the blockchain's immutability to guarantee data accuracy.
   • BIntegrate IoT sensors and automated data capture at key points in the supply chain to reduce manual entry errors.
   • CUse a public blockchain to make all data visible to the auditor.
   • DAllow authorized users to edit blockchain records after entry to correct errors.
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   In a blockchain-based trade settlement, what is the primary role of a smart contract?

   • ATo store encrypted copies of trade documents off-chain
   • BTo provide a legal opinion on the trade agreement
   • CTo automatically execute payment when predefined conditions are met
   • DTo replace the need for a trusted third party entirely
   Reveal Solution Discussion Select an answer first
5. 34expert · hard

   A trade finance consortium of banks wants to reduce fraud from duplicate invoicing. Each bank currently maintains its own ledger, and there is no shared view of financed invoices. The consortium is considering a blockchain solution but is concerned about privacy—banks do not want to reveal customer details to competitors. Which design best prevents double financing while preserving confidentiality?

   • AUse a permissioned blockchain with a shared registry that records only invoice identifiers and financing status, not full customer data.
   • BUse a centralized database managed by a third party to track financed invoices.
   • CUse a private messaging system where banks voluntarily share invoice status.
   • DUse a public blockchain to record all invoice details for maximum transparency.
   Reveal Solution Discussion Select an answer first
6. 35foundation · easy

   How do smart contracts reduce manual intervention in trade settlements?

   • ABy automatically checking conditions and executing agreed actions
   • BBy using artificial intelligence to negotiate new trade terms
   • CBy providing a platform for manual data entry
   • DBy creating a legal contract that replaces all paper documents
   Reveal Solution Discussion Select an answer first