Central Bank Digital Currencies (CBDCs) and e-CNY BFC Practice Questions (Page 8)

Questions 36–40

1. 36application · medium

   A researcher is analyzing the e-CNY pilot programs and wants to understand how the pilots have evolved over time. Which of the following accurately describes the progression of the e-CNY pilots?

   • AThe pilots were limited to online transactions only
   • BThe pilots started in a few cities and gradually expanded to more cities and use cases, including government payments and cross-border trials
   • CThe pilots were immediately rolled out nationwide without a phased approach
   • DThe pilots were conducted only in Beijing and Shanghai from the beginning
   Reveal Solution Discussion Select an answer first
2. 37foundation · easy

   Which policy driver is most likely to motivate a central bank to explore a wholesale CBDC?

   • AProviding free digital wallets to all citizens
   • BPromoting financial inclusion for unbanked populations
   • CEnsuring that cash remains widely used for small transactions
   • DImproving the efficiency and safety of interbank payment and settlement systems
   Reveal Solution Discussion Select an answer first
4. 38foundation · easy

   Which use case is most commonly associated with a wholesale CBDC?

   • AEnabling individuals to make everyday purchases at retail stores
   • BSettling interbank payments and securities transactions more efficiently
   • CProviding a digital alternative to cash for tourists
   • DFacilitating peer-to-peer transfers between friends
   Reveal Solution Discussion Select an answer first
5. 39application · medium

   A retail chain in China wants to integrate e-CNY payments. The chain's customers often shop in areas with poor internet connectivity. Which e-CNY feature is most relevant to ensure transactions can still be completed?

   • ATiered anonymity
   • BProgrammability
   • CInterest-bearing balances
   • DOffline payment capability
   Reveal Solution Discussion Select an answer first
6. 40application · easy

   A central bank is exploring a CBDC to improve payment efficiency by reducing the cost and time of cross-border transactions. Which of the following is a primary objective of a CBDC that aligns with this goal?

   • AEnhancing payment efficiency by enabling faster and cheaper transactions, including cross-border payments
   • BProviding a new investment vehicle for retail investors
   • CEliminating the need for financial regulation
   • DReplacing all commercial bank deposits with central bank liabilities
   Reveal Solution Discussion Select an answer first