70. Stablecoins and Cryptocurrency

What is the primary problem that stablecoins were created to solve?
1. The complexity of using traditional bank accounts for online payments.
2. The rapid and unpredictable price changes of cryptocurrencies like Bitcoin.
3. The lack of trust in governments and financial institutions.
4. The difficulty of making international transfers.
According to the essay, how do most stablecoins maintain a stable value?
1. They are controlled directly by governments to prevent price changes.
2. They are used only for trading and not as a long-term investment.
3. Their price is linked to a stable asset like the U.S. dollar or gold.
4. Their supply is limited, which makes them more valuable over time.
The essay suggests that a key use for stablecoins on cryptocurrency exchanges is to
1. replace traditional cryptocurrencies like Bitcoin and Ethereum entirely.
2. allow traders to hold funds without worrying about sudden market changes.
3. help governments create new rules for the financial system.
4. generate high returns through investment in digital assets.
What is identified as a potential risk or weakness of stablecoins?
1. They cannot be used for international money transfers.
2. Their value is less stable than cryptocurrencies like Ethereum.
3. They depend on trust that the issuer has enough assets to back them.
4. They are too difficult for most people to use for daily payments.
Based on the passage, what is the overall role of stablecoins?
1. To act as a bridge between the volatile crypto world and stable traditional money.
2. To replace the U.S. dollar and euro as the main global currencies.
3. To serve as the most profitable type of long-term digital investment.
4. To eliminate the need for government regulation of finance.