Ethereum Ecosystem, EVM, and Role in Financial Markets BFC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   How do gas fees affect financial market participants using Ethereum?

   • AThey can increase during periods of high network congestion, raising the cost of executing trades
   • BThey are paid in fiat currency
   • CThey have no impact on transaction costs
   • DThey are fixed regardless of network congestion
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   How do Ethereum standards like ERC-20 and ERC-721 contribute to interoperability in financial ecosystems?

   • ABy ensuring that all tokens are identical and interchangeable
   • BBy providing a common interface that allows different applications to interact with tokens seamlessly
   • CBy requiring all tokens to be approved by a central authority
   • DBy limiting tokens to a single blockchain
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   What is a smart contract on the Ethereum blockchain?

   • AA digital signature that verifies the identity of a user
   • BA legal agreement between parties that is stored on-chain
   • CA type of cryptocurrency used to pay for transactions
   • DA self-executing program with the terms of the agreement directly written into code
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   Which component of the Ethereum ecosystem is responsible for executing smart contract bytecode and enforcing the rules of the protocol?

   • AEthereum client (e.g., Geth)
   • BEthereum node
   • CEthereum account
   • DEthereum Virtual Machine (EVM)
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A fintech startup is deploying a DeFi lending protocol on Ethereum. During a load test, users complain that transactions sometimes take several minutes to confirm and occasionally fail. The team notices that gas prices spike during peak hours. Which action would most directly improve transaction confirmation reliability for users without changing the protocol's logic?

   • AIncrease the gas limit for each transaction to allow more computation
   • BImplement a gas price oracle that dynamically sets the transaction fee based on current network conditions
   • CDeploy additional nodes to increase the network's transaction throughput
   • DSwitch the protocol to a sidechain with a lower base fee
   Reveal Solution Discussion Select an answer first