Which of the following statements about Bitcoin is/are correct? 1. It is a decentralized virtual currency. 2. It is generated through complex computer software systems. 3. The Reserve Bank of India recognized it as a legal tender in January 2016. Select the correct answer using the code given below.
- A.1 only
- B.1 and 2 only
- C.2 and 3 only
- D.1, 2 and 3
Correct answer
Explanation
The correct answer is B, 1 and 2 only. Bitcoin is a decentralised digital currency created by computer software, but the Reserve Bank of India has never made it legal tender.
Bitcoin was launched in 2009 by a person or group using the name Satoshi Nakamoto. No central bank or government issues it. Transactions are recorded on a public ledger called the blockchain, which is kept by thousands of computers across the network. New bitcoins are created through mining, in which computers run software that solves hard cryptographic puzzles to confirm blocks of transactions, and the total supply is capped at 21 million coins. In India, legal tender means the rupee notes and coins issued under law; the RBI has repeatedly cautioned the public about the risks of virtual currencies.
Option A is wrong because statement 2 is also correct. Option C is wrong because statement 3 is false. Option D is wrong because Bitcoin was never declared legal tender by the RBI.
Exam tip: Bitcoin = 2009, Satoshi Nakamoto, blockchain, mining, 21 million cap; not legal tender in India.
Practice Questions
View allHindustan Aeronautics Limited handed over the first two indigenously designed and manufactured light combat aircrafts to the Indian Air Force in 2016. What is the name of these new combat aircrafts?
- A.Marut
- B.Garud
- C.Tejas
- D.Pushpak
Show answer
Tejas is India's indigenous Light Combat Aircraft, and the first two were handed over to the Indian Air Force on 1 July 2016 to form No. 45 Squadron, the Flying Daggers.
Read the full explanation →Which one of the following is India's first indigenously designed and developed long-range subsonic cruise missile which can be deployed from multiple platforms?
- A.Astra
- B.Akash
- C.Nirbhay
- D.Shankhnaad
Show answer
Nirbhay is the long-range subsonic cruise missile designed and developed in India by the DRDO. Nirbhay was developed by DRDO's Aeronautical Development Establishment in Bengaluru.
Read the full explanation →"Million Minds Augmenting National Aspirations and Knowledge" (MANAK), a scheme under the flagship programme, Innovation in Science Pursuit for Inspired Research (INSPIRE), caters to :
- A.The college students studying in the undergraduate programme in the age group of 19 - 25 years.
- B.The research scholars in recognized research laboratories of national importance.
- C.The college teachers of the country.
- D.The school children studying in classes 6 - 10 in the age group of 10 - 15 years.
Show answer
INSPIRE-MANAK is the school-level part of INSPIRE. INSPIRE is run by the Department of Science and Technology to draw young talent into science.
Read the full explanation →Which one of the following statements is not correct?
- A.BrahMos is a supersonic cruise missile made by India and Russian Federation.
- B.The name BrahMos came from two rivers, Brahmaputra of India and Moskva of Russia.
- C.Indian military scientists were capable of integrating BrahMos cruise missile with Sukhoi-30 MKI fighter.
- D.Defence Research and Development Organization is the manufacturer of Sukhoi-30 MKI fighter.
Show answer
The Sukhoi-30 MKI is not made by DRDO; it was designed by Russia's Sukhoi bureau and is built in India under licence by Hindustan Aeronautics Limited (HAL) at Nashik.
Read the full explanation →'Tejas' is the name of which one of the following?
- A.Main battle tank
- B.Nuclear submarine
- C.Light combat aircraft
- D.Aircraft carrier
Show answer
Tejas is India's indigenous single-engine light combat aircraft built for the Indian Air Force. The Light Combat Aircraft programme was started in the 1980s to replace the ageing MiG-21 fleet.
Read the full explanation →