Fundamental Concepts and Working Principles of Blockchain Technology BFC Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A financial institution is exploring blockchain to streamline its letter-of-credit process. Currently, multiple parties (importer, exporter, banks) maintain separate records and reconcile manually. Which benefit of blockchain directly addresses this pain point?

   • AA shared, synchronized ledger that reduces reconciliation effort and provides a single source of truth
   • BFaster transaction processing than any centralized database
   • CElimination of all regulatory reporting requirements
   • DComplete anonymity for all parties involved
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A consortium of five banks wants to share a distributed ledger for trade finance. They need to keep transaction data confidential from the public, but they also want to reduce reconciliation costs and have a single shared source of truth. Which deployment model best fits their needs?

   • AConsortium blockchain with permissioned access
   • BPrivate blockchain operated by one bank
   • CCentralized database with a shared API
   • DPublic blockchain with encrypted transactions
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A non-profit organization wants to create a transparent donation tracking system where donors can verify that their funds are used as intended, without relying on a central authority to publish reports. Which technology best fits this need?

   • AA social media page where the organization posts updates on fund usage.
   • BA peer-to-peer file sharing system where donors exchange spreadsheets.
   • CA centralized database with a public website showing aggregated reports.
   • DA blockchain-based ledger where each donation and expenditure is recorded in a tamper-evident, shared ledger.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   What is a key characteristic of a public blockchain?

   • AIt requires a central authority to validate transactions
   • BAnyone can join the network and participate in consensus
   • COnly authorized organizations can access the network
   • DIt is controlled by a single government entity
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A bank wants to automate the release of a letter of credit when a shipment's GPS data confirms delivery, without manual review. The bank also needs the process to be transparent and auditable by both the importer and exporter. Which blockchain feature should the bank implement?

   • AA private database with a cron job that checks GPS data and triggers a payment.
   • BA smart contract that automatically executes the payment when the GPS data meets predefined conditions.
   • CA multi-signature wallet requiring both parties to manually approve each payment.
   • DA public blockchain with no smart contract capability, using only simple transactions.
   Reveal Solution Discussion Select an answer first