Test Bank For - Management 17 th Edition By Eugene Brigham, Joe...

Test Bank For Fundamentals of Financial Management 17 th Edition By Eugene Brigham, Joel Houston (All Chapters 1-22, 100% Original Verified, A+ Grade) All Chapters Arranged

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Chapter 22 - Fintech in Financial Markets

• What does the term “fintech” refer to?
• Financial intermediaries
• Cutting-edge financial products and

services

• Government regulations of technology
• Accounting systems
• Financial institutions

ANSWER: b

• What technology enabled the electronic transfer of money in the 19th century?
• Telegraph
• ATM machine
• Bitcoin
• Telephone
• Internet

ANSWER: a

• What led to the explosive growth of fintech?
• Slow economic growth
• High interest rates
• Rapid advancements in digital

technology

• Tighter regulations
• Use of cash and checks

ANSWER: c

• What enabled online bill payment and money transfers in the 1990s?
• Ethereum
• Internet
• Cloud computing
• Mainframe

computers

• Customer demand

ANSWER: b

• What allowed early bitcoin mining?
• Cloud computing
• Lower bitcoin prices
• Using regular computers
• Access to banking data
• Use of renewable energy resources

ANSWER: c

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Chapter 22 - Fintech in Financial Markets

• How does distributed data storage enhance blockchain security?
• By encrypting data
• By hiding IP addresses
• By multiplying the difficulty of hacking the system using multiple nodes
• By blocking malware
• By not allowing duplicate copies of the data

ANSWER: c

• How does blockchain prevent data tampering by hackers?
• Encryption protocols used by hackers

b.Hackers could access credential checks

• Using complex passwords

d.Firewall protections exploited by hackers

• Hackers could typically access one node, but the system’s consensus mechanism

requires a majority of nodes before data is altered

ANSWER: e

• In which type of blockchain can any user add data?
• Private blockchains
• Public blockchains
• Permissionless blockchains
• Corporate blockchains
• Permissioned blockchains

ANSWER: c

• Which is an advantage of using bitcoins for transactions?
• Availability of credit
• Deposit insurance
• Reversible payments
• Faster transaction

speed

• Zero fees

ANSWER: d

• Which of the following contributes to the volatility of the market value of Bitcoin?
• Government bans
• Technical glitches
• Speculation and investor attitudes
• Incorrect pricing data
• Cash is still used for purchasing goods and

services

ANSWER: c

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Chapter 22 - Fintech in Financial Markets

• How can crypto volatility be hedged?
• With collateralized debt
• Through arbitrage
• Using futures contracts
• By trading options
• By eliminating cash for international

transactions

ANSWER: c

• Why do institutional investors have a reluctancy to enter the bitcoin futures market?
• Government bailout policies
• Deposit insurance protection does not apply to the

market.

• Confidence in short-term volatility
• A perceived lack of liquidity.
• Distrust in bitcoin versus cash

ANSWER: d

• How could exchange-traded funds (ETFs) based on bitcoin futures approval aid crypto adoption?
• By guaranteeing bitcoin prices
• Through promoting smart contracts in traditional tradeable securities
• By attracting institutional investors to cryptocurrencies through traditional

markets

• From tax incentives for cryptocurrency miners
• By avoiding price manipulation

ANSWER: c

• What are smart contracts used for on the blockchain?
• Hiring lawyers
• Security regulations
• Storing personal data
• Automating transactions without

intermediaries

• Guarantee secure transactions

ANSWER: d

• What are initial coin offerings (ICOs)?
• A type of blockchain
• An equity offering
• A process similar to initial public offerings (IPOs)
• An options market
• An international currency option

ANSWER: c

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