Financial Blockchain Business Models BFC Practice Questions (Page 9)

Questions 41–45

1. 41foundation · easy

   How does blockchain reduce costs in financial value chains?

   • ABy eliminating the need for reconciliation between multiple ledgers
   • BBy slowing down transaction settlement to reduce errors
   • CBy increasing the number of intermediaries in each transaction
   • DBy requiring all parties to maintain separate, duplicate databases
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2. 42expert · hard

   A bank is studying a successful blockchain-based remittance platform that has reduced costs by 50% compared to traditional methods. The platform uses a stablecoin and a network of local partners for cash-in and cash-out. The bank wants to replicate this model in a new market. Which factor is most critical for the bank to consider when entering the new market?

   • AThe number of local partners the bank can recruit.
   • BThe regulatory environment for stablecoins and digital payments in the new market.
   • CThe volatility of the stablecoin's peg.
   • DThe speed of the blockchain network used by the platform.
   Reveal Solution Discussion Select an answer first
4. 43foundation · easy

   How does a blockchain-based financial service typically generate revenue through transaction fees?

   • ABy selling user data to third parties without consent
   • BBy requiring users to pay a one-time setup fee for every transaction
   • CBy charging users a fee for each transaction processed on the network
   • DBy charging a flat annual fee for each transaction
   Reveal Solution Discussion Select an answer first
5. 44expert · hard

   A startup is building a blockchain-based platform for trading tokenized carbon credits. The platform plans to allow both institutional investors and retail users to trade these credits. The startup is considering whether to classify the carbon credit token as a security or a commodity. The team is split: some argue it should be a security because it represents a tradable asset, while others argue it is a commodity because carbon credits are regulated as commodities in some jurisdictions. The startup wants to minimize regulatory risk while maintaining a global user base. Which approach is most sound?

   • AClassify the token as a commodity globally because carbon credits are physical assets
   • BClassify the token as a security globally to be safe, and restrict access to accredited investors only
   • CAvoid all regulatory classification by making the token a pure utility token for accessing the platform
   • DConduct a legal analysis of each jurisdiction's classification of carbon credits and design the token to comply with the most restrictive applicable regulations
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6. 45application · medium

   A consortium of insurance companies is evaluating a blockchain-based platform to automate claims processing among members. The platform uses smart contracts to validate claims against policy terms and automatically trigger payouts. The consortium expects to reduce administrative overhead and fraud. Which value-chain transformation is the most direct result of this model?

   • AShift from a pay-per-claim revenue model to a subscription model for policyholders.
   • BCreation of a new intermediary to manage the blockchain network, increasing overall costs.
   • CDisintermediation of the claims adjuster role, as smart contracts replace manual verification and approval steps.
   • DElimination of all fraud in the insurance industry, as blockchain immutability prevents false claims.
   Reveal Solution Discussion Select an answer first