Financial Blockchain Business Models BFC Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which of the following is a real-world example of a blockchain business model in banking?

   • AA bank using a centralized database for customer records
   • BA credit card company using a traditional clearinghouse
   • CA stock exchange using a manual trading floor
   • DRipple's payment settlement network for cross-border transactions
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A fintech company is launching a blockchain-based stablecoin pegged to the US dollar. The company plans to earn revenue by investing the reserve assets in short-term government bonds. The stablecoin will be used for payments and remittances. Which regulatory consideration is most likely to affect the business model's viability?

   • AWhether the stablecoin can be mined or is pre-mined.
   • BWhether the reserve assets are held in a regulated bank.
   • CWhether the blockchain network is fast enough to handle high transaction volumes.
   • DWhether the stablecoin is classified as a security or a money transmitter under applicable laws.
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A bank is evaluating a blockchain-based supply chain finance platform that has successfully reduced invoice fraud and improved access to financing for small suppliers. The platform uses a shared ledger to verify invoices and smart contracts to automate financing. Which factor is most critical to the platform's success in reducing fraud?

   • AThe number of banks participating in the platform.
   • BThe use of a native token to incentivize honest behavior.
   • CThe immutability of the shared ledger, which prevents alteration of invoice records.
   • DThe speed of the blockchain network in processing transactions.
   Reveal Solution Discussion Select an answer first
5. 4application · medium

   A blockchain-based remittance service plans to charge users a flat fee per transaction and also issue a token that users can earn by referring new customers. The token can be used to pay for transaction fees. Which revenue stream is the service primarily relying on?

   • AToken sales, as the token's value will appreciate with adoption.
   • BTransaction fees, with token rewards serving as a customer acquisition incentive.
   • CSubscription fees, as users must hold tokens to use the service.
   • DInterest on float, as the service holds user funds.
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   In a blockchain-based financial value chain, which of the following is a typical cost reduction?

   • ANo change in costs, only a change in revenue
   • BLower transaction processing costs due to automation via smart contracts
   • CHigher costs due to the need for more manual auditing
   • DIncreased costs from maintaining multiple redundant systems
   Reveal Solution Discussion Select an answer first