4
AssignmentMultiple Choice

Understanding Checking and Debit Accounts

Question 4 • Personal Finance - EL3403

Which statement best describes a disadvantage of using digital currency for online purchases?

Answer
A
Digital currency can only be used in the country where it was purchased.
B
Digital currency transactions are slower than traditional electronic transfers.
C
Digital currency transactions are reversible and lead to frequent fraud.
D
Digital currency’s value can be subject to high volatility.

Explanation

Digital currencies can rise or fall sharply in value over a short period. That volatility makes the amount a purchase costs, or the value of funds held for later use, less predictable. The best answer is “Digital currency’s value can be subject to high volatility.”

AI-written and checked against the verified answer.