Central Bank Digital Currencies (CBDCs) and e-CNY BFC Practice Questions (Page 2)

Questions 6–10

1. 6expert · hard

   A multinational bank is assessing the global implications of e-CNY versus other CBDC initiatives, such as the Bahamas' Sand Dollar and Nigeria's eNaira. The bank's risk team is particularly concerned about the potential for e-CNY to influence international monetary systems. Which aspect of e-CNY is most likely to have a distinct cross-border impact compared to smaller-country CBDCs?

   • AIts programmability and offline payment features
   • BThe scale of China's economy and its role in global trade
   • CIts use of a two-tier distribution model
   • DIts pilot testing in multiple cities
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   Which of the following is a potential benefit of a CBDC that could enhance financial stability?

   • AProviding a risk-free digital payment instrument backed by the central bank
   • BGuaranteeing that commercial banks will never fail
   • CEliminating all forms of financial fraud and cybercrime
   • DEnsuring that all citizens have access to credit
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   Which feature of e-CNY allows it to function even when the user's device is not connected to the internet?

   • APeer-to-peer networking that uses other users' devices as relays
   • BPre-loaded balances that are stored on the SIM card of the device
   • CSMS-based transaction processing through mobile network operators
   • DOffline payment capability using near-field communication (NFC) or similar technology
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   Which design feature of a CBDC would most directly affect its attractiveness as a store of value versus a medium of exchange?

   • AWhether it uses a distributed ledger or a centralized database
   • BWhether it is issued by the central bank or a commercial bank
   • CWhether it is account-based or token-based
   • DWhether it is interest-bearing or non-interest-bearing
   Reveal Solution Discussion Select an answer first
6. 10foundation · easy

   What does the programmability of e-CNY enable?

   • AThe ability to mine new e-CNY tokens through computational work
   • BSmart contracts that can automatically execute payments when conditions are met
   • CThe ability to earn interest on e-CNY balances automatically
   • DThe ability for users to create their own private digital currencies
   Reveal Solution Discussion Select an answer first