Financial Blockchain Business Models BFC Practice Questions (Page 8)

Questions 36–40

1. 36foundation · easy

   Which regulatory consideration is most likely to affect the viability of a security token offering?

   • AIntellectual property laws that protect software code
   • BSecurities laws that require registration or an exemption
   • CData privacy laws that require user consent for cookies
   • DEnvironmental regulations that limit energy consumption
   Reveal Solution Discussion Select an answer first
2. 37application · medium

   A global trade finance bank currently processes letters of credit through a manual, paper-based process involving multiple correspondent banks. The bank is evaluating a blockchain-based platform that digitizes the process and provides a shared, immutable record of documents. The bank's primary goal is to reduce operational costs and shorten settlement times. Which value-chain change best explains the cost reduction?

   • AReplacing all correspondent banks with a single central authority
   • BReducing the need for legal contracts in trade finance
   • CIncreasing the number of manual verification steps
   • DEliminating reconciliation and duplicate record-keeping across banks
   Reveal Solution Discussion Select an answer first
4. 38application · medium

   A bank is evaluating a blockchain-based syndicated loan platform that allows multiple banks to share a single, synchronized record of loan terms, payments, and amendments. Currently, each bank maintains its own records and reconciles them periodically. Which cost reduction is most directly achieved by the platform?

   • AReduced interest expense by lowering the loan's coupon rate
   • BElimination of legal fees for loan documentation
   • CLower administrative costs from eliminating reconciliation and duplicate record-keeping
   • DLower capital reserve requirements imposed by regulators
   Reveal Solution Discussion Select an answer first
5. 39foundation · easy

   Which of the following best describes a blockchain-enabled financial business model?

   • AA model that uses distributed ledger technology to create new value propositions and revenue streams
   • BA model where a central authority controls all transactions and data
   • CA model that eliminates the need for any intermediaries in all financial transactions
   • DA model that exclusively relies on physical cash and manual reconciliation
   Reveal Solution Discussion Select an answer first
6. 40expert · hard

   A blockchain-based remittance company wants to offer services in the European Union and the United States. The company plans to issue a stablecoin pegged to the euro for EU customers and a stablecoin pegged to the US dollar for US customers. The company's legal team warns that stablecoin regulations are evolving in both regions. Which approach best balances regulatory compliance and business viability?

   • ADelay all stablecoin plans until global regulations are finalized
   • BUse a single global stablecoin pegged to a basket of currencies to avoid regional regulation
   • CLaunch only in the EU because its regulations are more favorable to stablecoins
   • DDesign the stablecoin operations to comply with the stricter of the two regulatory regimes and maintain flexibility to adapt as regulations evolve
   Reveal Solution Discussion Select an answer first