CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Regarding cryptocurrencies and ICOs, which statement is true?

A. Cryptocurrencies are regulated by digital currency exchanges.
B. An initial coin offering (ICO) typically has digital voting rights attached.
C. An ICO usually has lower issuance costs and shorter capital raising time frames than a IPO.
Correct Answer: C

A is false. Cryptocurrencies are not backed by governments.
B is false. Most ICOs do not typically have attached voting rights.
Blockchain and distributed ledger technology (DLT) may offer a new way to store, record, and track financial assets on a secure, distributed basis. Applications include cryptocurrencies and tokenization. Additionally, DLT may bring efficiencies to post-trade and compliance processes through automation, smart contracts, and identity verification.

User Contributed Comments 0

You need to log in first to add your comment.