How Does Encryption Work

question 5

Multiple Choice

How does encryption work?

• A) It scrambles the information until the key is used to unscramble it.
• B) It protects data on your hard drive,but once you choose to send it to someone,it is no longer protected.
• C) It is a key that you insert into your computer to unlock your saved files.
• D) It is what happens when you download attachments from your email.

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Definitions:

Medium of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.

Federal Funds Rate

The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.

Open-market Purchase

The buying of securities by a central bank from the market to inject liquidity and encourage economic growth.