Benefits of Cryptocurrencies and Blockchain Include All of the Following

question 44

Multiple Choice

Benefits of cryptocurrencies and blockchain include all of the following EXCEPT:

• A)Business or individuals can create financial agreements without relying on banks.
• B)Business or individuals can make financial transactions without relying on banks.
• C)Transactions among businesses or individuals will have to know each other to make financial agreements.
• D)Transaction costs among all of the participants in the economy can be reduced.
• E)Rating agencies and government bodies will not be necessary to verify identity, establish trust, or perform the critical business logic.

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Definitions:

Monopolistic Competition

A business environment where a multitude of firms provide closely related but not identical products, granting them some market control.

Marginal Decision Rule

A principle that suggests decisions should be made by considering the additional benefits and costs of one more unit of change.

MC > MR

A condition where the marginal cost of producing an additional unit is greater than the marginal revenue gained from selling it, which suggests a decrease in production to maximize profits.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for differentiation and some degree of market power.