CBC Security & Regulatory Compliance

Question 1

What is the primary security feature of blockchain technology?

Accepted Answer

Decentralized structure with cryptographic security

Answer

Centralized control of data

Answer

Easily modifiable transaction records

Answer

Reliance on a single entity for security

Question 2

Which regulatory body oversees cryptocurrency compliance in the United States?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

Federal Communications Commission (FCC)

Answer

Department of Education (DOE)

Answer

National Aeronautics and Space Administration (NASA)

Question 3

How does blockchain technology enhance data privacy?

Accepted Answer

By encrypting transaction data for security

Answer

By storing personal data in a public ledger

Answer

By allowing unlimited data modifications

Answer

By removing encryption for transparency

Question 4

Which compliance measure helps prevent money laundering in cryptocurrency transactions?

Accepted Answer

Implementing Know Your Customer (KYC) procedures

Answer

Ignoring user identities

Answer

Allowing anonymous transactions

Answer

Removing transaction tracking

Question 5

What is a common security risk in blockchain networks?

Accepted Answer

51% attack allowing control over transaction validation

Answer

Automatic self-correction of fraudulent transactions

Answer

Unlimited scalability without security trade-offs

Answer

Decentralized network ensuring full immunity from attacks

Question 6

Which regulation is critical for businesses using blockchain in financial transactions?

Accepted Answer

General Data Protection Regulation (GDPR)

Answer

Food and Drug Administration (FDA) guidelines

Answer

Federal Aviation Regulations (FAR)

Answer

Maritime Security Act (MSA)