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Quiz 3: De-Fi Wizard

1.   DeFi applications are based on self-executing code that functions without external (human) interference once commenced by an order or command?

  1.   True
  2.   False

2.   All participants on the same DeFi protocol play by the same rules; no changes can occur unilaterally or through the control of a single party?

  1.   True
  2.   False

3.   DeFi platforms rely entirely on their ______ for all functions.

  1.   open source computer code
  2.   Ethereum tokens
  3.   Legal team
  4.   Regulations
  5.   Central Bank Digital Currencies (CBDCs)

4.   DeFi is exclusive to financial instruments?

  1.   True
  2.   False

5.   Smart contracts are highly secure because they will always execute as programmed, giving results that are transparent with minimal risk of manipulation or arbitrary intervention?

  1.   True
  2.   False

6.   DeFi makes it possible for someone to buy a stablecoin on a Decentralized Exchange, move it to a lending platform to earn interest, and subsequently add the interest-bearing instruments to a decentralized liquidity pool or an on-chain investment fund?

  1.   True
  2.   False

7.   For a DeFi protocol to be truly decentralized, it must be ungoverned?

  1.   True
  2.   False

8.   How can DeFi contribute to a more transparent, secure, and equitable financial system?

  1.   Eliminating intermediaries, individuals can interact directly with smart contracts from their wallets.
  2.   Global access, anyone with a computer and internet connection can participate.
  3.   Transaction records are permanent and code is available for anyone to audit.
  4.   All of the above.

9.   DeFi eliminates all risks that are present in traditional finance?

  1.   True
  2.   False

10.   What challenge do regulators face when it comes to DeFi?

  1.   Setting a clear definition for Decentralized Finance.
  2.   Determining how asset-agnostic platforms should be regulated.
  3.   Understanding the legal obligations software developers, if any.
  4.   Regulating cross-border transactions.
  5.   Assessing privacy, cybersecurity and software development rules.
  6.   Balancing innovation, economic inclusion, consumer & investor protection.
  7.   All of the above.

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