CBP - Certified Bitcoin Professional History and Properties of Money Questions and Answers 1

Question 1

Which of the following is NOT considered a primary function of money?

Accepted Answer

Speculation

Answer

The three primary functions of money are: a medium of exchange, a unit of account, and a store of value. Speculation is an activity that can be done with money, but it is not a fundamental function of money itself.

Question 2

A software developer in Canada is paid in Bitcoin by a client in Japan. This transaction primarily highlights which property of money that Bitcoin excels in?

Accepted Answer

Portability (Salability across space)

Answer

This scenario demonstrates Bitcoin's exceptional portability, also referred to as salability across space. It can be sent across geographical borders quickly and efficiently without the need for traditional financial intermediaries. While other properties are important, the international nature of the transaction makes portability the most relevant answer.

Question 3

The historical progression from barter to commodity money, such as shells or salt, was primarily a solution to which problem?

Accepted Answer

The double coincidence of wants

Answer

The barter system requires a 'double coincidence of wants,' where two parties each have something the other desires. Commodity money emerged as a solution, providing a common medium of exchange that was widely accepted, thus eliminating the need for this double coincidence.

Question 4

Which property of money ensures that one unit of the currency is interchangeable with another unit of the same value?

Accepted Answer

Fungibility

Answer

Fungibility means that individual units of a commodity or currency are interchangeable and essentially indistinguishable from one another. For example, one dollar is treated the same as any other dollar. This uniformity is a key property of good money.

Question 5

The concept of 'salability across time' is most closely related to which function of money?

Accepted Answer

Store of Value

Answer

Salability across time refers to a good's ability to hold its value into the future. This directly corresponds to the 'store of value' function of money, which allows individuals to save purchasing power for later use.

(CBP) Certified Bitcoin Professional Practice Test

(CBP) Certified Bitcoin Professional Practice Test

CBP - Certified Bitcoin Professional History and Properties of Money Questions and Answers 1