Question

22.
Why are cryptocurrencies, like Bitcoin and Ethereum, not considered to have the same economic function as fiat currencies like the United States Dollar (USD)?

Select {responseValue}
Cryptocurrencies are not a medium of exchange or a unit of account.

Select {responseValue}
Fiat currencies can be used for borderless transactions, while cryptocurrencies cannot.

Select {responseValue}
Fiat currencies are generally more volatile than cryptocurrencies and, therefore, more desirable.

Select {responseValue}
Cryptocurrencies are not regulated or centrally controlled, so their stability is uncertain.

Answer 1

Selected:
- Cryptocurrencies are not a medium of exchange or a unit of account.
- Cryptocurrencies are not regulated or centrally controlled, so their stability is uncertain.

(Options B and C are incorrect: cryptocurrencies are borderless, and fiat is generally less volatile than crypto.)