EC-CouncilBlockchain Fintech Certification
Domain 6Objective 3
Stablecoins and Their Use Cases in Finance BFC Practice Questions (Page 5)
Part of the Digital Currencies and Cryptocurrencies domain, which makes up ~15% of our current practice bank.
49questions here
10free pages
8concepts
Questions 21–25
- 21
A crypto trader wants to hedge against Bitcoin's volatility without exiting the crypto ecosystem. They plan to hold a stablecoin during market downturns. Which stablecoin feature is most essential for this hedging strategy?
Select an answer first - 22
A DeFi protocol wants to integrate a stablecoin as a base trading pair. They need to choose between a fiat-collateralized stablecoin and a crypto-collateralized stablecoin. What is the primary trade-off in terms of stability and decentralization?
Select an answer first - 23
A stablecoin is designed to maintain a 1:1 peg to the US dollar. The issuer holds reserves in a mix of cash and short-term Treasuries. Which characteristic does this stablecoin exhibit?
Select an answer first - 24
A cross-border payment service wants to use a stablecoin to reduce settlement times. Which stablecoin characteristic is most important?
Select an answer first - 25
Which type of stablecoin is backed by a reserve of another cryptocurrency, often over-collateralized to absorb price fluctuations?
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