Decentralized Finance (DeFi) Infrastructure Quiz Answers

Get All Weeks Decentralized Finance (DeFi) Infrastructure Quiz Answers

Decentralized Finance (DeFi) Infrastructure Week 01 Quiz Answers

Module Quiz Quiz Answers

Q1. Both early barter trading and modern-day DeFi are peer-to-peer systems of market exchange.

[expand title=View Answer] False [/expand]

Q2. Which of the following is NOT a  primary or secondary role of money?

[expand title=View Answer] Method to earn interest [/expand]

Q3. Iraqi Swiss Dinars were an example of a currency that had intangible value.

[expand title=View Answer] False [/expand]

Q4. Which of the following are TRUE about centralized finance as per the lecture, “Brief overview of CeFi problems”?

[expand title=View Answer] Fund transfers are not instantaneous [/expand]

Q5. Why do small entrepreneurs have to fund their businesses with credit cards?

[expand title=View Answer] The size of these entrepreneurs’ businesses is too small to interest institutional channels of finance. [/expand]

Q6. Which of these early DeFi ideas made trading stocks cheaper?

[expand title=View Answer] 3-day settlement [/expand]

Q7. Which are the problems that plague centralized finance? Hint: You can choose more than one.

[expand title=View Answer]
1.Lack of interoperability
2.Inefficiency
3.Centralized control
4.Limited access
[/expand]

Q8. Most current Fintech initiatives use legacy banking infrastructure.

[expand title=View Answer] False [/expand]

 Q9. Which ideas did Satoshi Nakamoto combine to introduce Bitcoin?

[expand title=View Answer]
Blockchain

Mining pools
[/expand]

Q10. Which of the following statements are FALSE with respect to the Bitcoin blockchain?

[expand title=View Answer]
1.Computational platform for smart contracts
2.Mistakes can be edited and fixed
[/expand]

Decentralized Finance (DeFi) Infrastructure Week 02 Quiz Answers

Module Quiz Quiz Answers

Q1. Blockchain was invented by Satoshi Nakamoto in a famous 2008 paper.

[expand title=View Answer] True [/expand]

Q2. No matter how many times an (identical) data set is hashed, the output will always be the same.

[expand title=View Answer] True [/expand]

Q3. Blockchains are called blockchains because the ledger is broken into smaller datasets or blocks. The last line of the block contains a cryptographic hash that is repeated as the first line of the next block thus serving as the “chain”.

[expand title=View Answer] True [/expand]

Q4. Go to https://emn178.github.io/online-tools/sha256.html and enter the word DeFi (be careful of capitalization and no spaces). Which is the correct SHA-256 output (first six characters):

[expand title=View Answer] 3871f9 [/expand]

Q5. Miners gather transactions, verify that the transactions are valid, hash the transactions (which happens very quickly) and post a new block.

[expand title=View Answer] True [/expand]

 Q6. It is possible today, albeit very computationally challenging, to derive the private key associated with a public key.

[expand title=View Answer]True [/expand]

Q7. The gas required to operate on the Ethereum blockchain is paid in another cryptocurrency acceptable on the Ethereum blockchain.

[expand title=View Answer] True [/expand]

Q8. Miners on the Ethereum blockchain can choose any transactions to add to their block. Thus, inevitably, they end up choosing those transactions that bid the highest fees.

[expand title=View Answer]False [/expand]

Q9. Oracles enable external information to be used in computations on the Ethereum blockchain.

[expand title=View Answer] True [/expand]

Q10. There are three types of stablecoins: fiat or other asset collateralized, cryptocollateralized, and non-collateralized.

[expand title=View Answer] True [/expand]

Q11. DAOs or decentralized autonomous organizations have a board of directors, a CEO who has control over major decisions, and a company headquarters.

[expand title=View Answer] False [/expand]

Decentralized Finance (DeFi) Infrastructure Week 03 Quiz Answers

Module Quiz Answers

Q1. There is little difference between a dApp and an Apps like Robinhood, Venmo, Zelle, WeChat Pay, Alipay, etc.

[expand title=View Answer] False [/expand]

Q2. Keepers and Oracles are essentially the same, except that keepers do for DeFi platforms what Oracles do for blockchains.

[expand title=View Answer] False [/expand]

Q3. While vampirism is a risk to DeFi platforms due to their open-source nature (i.e., code can be copied and repurposed), there is a benefit of using existing code and improving on it.

[expand title=View Answer] True [/expand]

Q4. Yield farming refers to a situation where a user deposits crypto funds (potentially in various different DeFi platforms) and seeks the highest possible rewards or savings rates.

[expand title=View Answer] True [/expand]

Q5. Initial DeFi Offerings, or IDOs, are a long, expensive process, that includes filing with securities regulators such as the SEC in the US.

[expand title=View Answer] False [/expand]

Q6. DeFi refers to a fast-growing and highly opaque corner of the cryptocurrency market.

[expand title=View Answer] False [/expand]

Q8. A DeFi protocol is truly decentralized only if special privileges are given to the administrator.

[expand title=View Answer] False [/expand]

Q8. DeFi Legos is a concept that implies that each DeFi protocol is rigid and is incapable of interacting with other DeFi protocols.

[expand title=View Answer] False [/expand]

Q9. Tokenizing physical assets is much more straightforward than tokenizing virtual assets.

[expand title=View Answer] False [/expand]

Q10. One disadvantage of an Initial DeFi Offering is that an artificial floor on the cryptocurrency price is established that potentially could inhibit price discovery. 

[expand title=View Answer]False [/expand]

Decentralized Finance (DeFi) Infrastructure Week 04 Quiz Answers

Module Quiz Answers

Q1. All cryptocurrencies are anonymous and the technology makes it easier for criminals to operate.

[expand title=View Answer] False [/expand]

Q2. The Bitcoin and Ethereum blockchains are routinely hacked so these cryptos are not safe to use.

[expand title=View Answer] False[/expand]

Q3. Central banks’ Central Bank Digital Currencies or CBDC have nothing to do with DeFi.

[expand title=View Answer] False [/expand]

Q4. All cryptocurrencies have no fundamental value.

[expand title=View Answer] False [/expand]

Q5. Quantum computing poses very little threat to the main cryptocurrencies.

[expand title=View Answer] False[/expand]

Q6. Today the cost of transacting on the main networks like Bitcoin and Ethereum is trivial, opening up a new way to handle day-to-day transactions, like buying a coffee at Starbucks. 

[expand title=View Answer] False [/expand]

Q7. DeFi is so hard to understand that it will likely go nowhere.

[expand title=View Answer] False [/expand]

Q8. Given the rise of cryptocurrencies like Bitcoin and Ethereum, the price volatility has substantially decreased due to widespread use.

[expand title=View Answer] False [/expand]

Q9. The DeFi space is just too small compared to banks and, as such, is doomed to be a failure.

[expand title=View Answer]False[/expand]

Q10. Mining that underlies Proof of Work crypto protocols like Bitcoin and (currently) Ethereum is environmentally damaging.

[expand title=View Answer] True [/expand]

Get All Course Quiz Answers of Decentralized Finance (DeFi): The Future of Finance Specialization

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