A company wants to tokenize a fleet of vehicles. Each vehicle is unique (VIN, model, condition) and can be leased out. The company also wants to issue fungible tokens representing shares in the fleet's revenue. Which approach is correct?

Issue only ERC-721 tokens for both vehicles and revenue shares

Issue ERC-721 tokens for each vehicle and ERC-20 tokens for revenue shares

Issue only ERC-20 tokens for both vehicles and revenue shares

Issue ERC-20 tokens for each vehicle and ERC-721 tokens for revenue shares

Why are KYC (Know Your Customer) procedures important in tokenization projects?

To make the token more decentralized

To ensure the token's price remains stable

To comply with anti-money laundering (AML) regulations

To increase the speed of transactions

What is the key difference between fungible and non-fungible tokens?

Fungible tokens are interchangeable, while non-fungible tokens are unique

Fungible tokens are stored on-chain, while non-fungible tokens are stored off-chain

Fungible tokens are centralized, while non-fungible tokens are decentralized

Fungible tokens are only used for payments, while non-fungible tokens are only used for collectibles

A company is tokenizing a fund that will be offered to retail investors in a jurisdiction where the token qualifies as a security. The company wants to allow secondary trading but must ensure that only accredited investors participate. They are considering a public Ethereum ERC-20 token with a transfer restriction function. Which additional design element is essential to meet the regulatory requirement?

A public burn function that any holder can call to destroy tokens

A decentralized exchange integration that allows peer-to-peer trading without intermediaries

A time-lock that prevents transfers for the first year after issuance

A whitelist registry that is checked by the token contract before every transfer

In the token lifecycle, what does 'burning' a token typically mean?

Freezing the token to prevent transfers

Permanently removing the token from circulation

Creating new tokens to increase supply

Transferring the token to another user

EC-CouncilBlockchain Developer Certification

Domain 4Objective 3

Tokenization BDC Practice Questions (Page 2)

Part of the Cryptomining, Tokenization, and Digital Assets domain, which makes up ~10% of our current practice bank.

32questions here

7free pages

5concepts

Questions 6–10

6application · medium
A company wants to tokenize a fleet of vehicles. Each vehicle is unique (VIN, model, condition) and can be leased out. The company also wants to issue fungible tokens representing shares in the fleet's revenue. Which approach is correct?
Select an answer first
7foundation · easy
Why are KYC (Know Your Customer) procedures important in tokenization projects?
Select an answer first
8foundation · easy
What is the key difference between fungible and non-fungible tokens?
Select an answer first
9expert · hard
A company is tokenizing a fund that will be offered to retail investors in a jurisdiction where the token qualifies as a security. The company wants to allow secondary trading but must ensure that only accredited investors participate. They are considering a public Ethereum ERC-20 token with a transfer restriction function. Which additional design element is essential to meet the regulatory requirement?
Select an answer first
10foundation · easy
In the token lifecycle, what does 'burning' a token typically mean?
Select an answer first

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