Identify a Difference Between Fiat Currencies and Cryptocurrencies

question 54

Multiple Choice

Identify a difference between fiat currencies and cryptocurrencies.

• A) Unlike cryptocurrencies, fiat currencies are electronic currencies monitored by distributed peer networks.
• B) Unlike cryptocurrencies, fiat currencies are not controlled by intermediaries.
• C) Unlike cryptocurrencies, fiat currencies have no physical form.
• D) Unlike cryptocurrencies, fiat currencies are declared to be legal tender by the government.

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Definitions:

Short-Term Investment

Investments that are made to hold for a short period, usually less than one year, with the aim of selling for a profit in the near term.

Borrowing Activities

The actions undertaken by an individual or organization to obtain funds from external sources, typically involving loans or debt issuance.

Accounts Receivable Policy

Guidelines a company follows to manage the collection of money owed from clients.

Credit Manager

A Credit Manager is a professional responsible for overseeing a company's credit policies, assessing creditworthiness, and managing credit lines.