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Which technology enables confidential CBDC transactions while allowing regulatory audit?
- Zero-Knowledge Proofs
- Homomorphic Encryption
- Secure Multi-Party Computation
- All of these
Answer: All of these
Privacy-enhancing technologies: ZK-proofs verify without revealing data; homomorphic encryption enables computation on ciphertext; SMPC allows joint processing. Balance privacy with regulatory oversight.
The CBDC feature that allows transactions to be reversed under specific conditions is called ________ Capability.
Answer: Reversibility / Recoverability
Controlled reversibility enables transaction reversal for fraud, error, or legal orders while preserving finality for legitimate transactions. Critical for consumer protection and regulatory compliance.
Which regulatory approach treats crypto assets based on their economic function rather than underlying technology?
- Technology-Neutral Regulation
- Substance-Over-Form Principle
- Risk-Based Supervision
- All of these
Answer: All of these
Modern crypto regulation focuses on economic substance: payment tokens, security tokens, utility tokens regulated by function. Avoids technology lock-in and adapts to innovation. Critical for policy design.
Wholesale CBDC can enable real-time gross settlement of interbank transactions.
- True
- False
Answer: True
e₹-W enables instant, final settlement between banks and financial institutions, reducing counterparty risk and liquidity needs. Critical for payment system modernization and financial stability.
Which Indian provision requires crypto exchanges to maintain records for 5 years?
- PMLA Rules
- IT Act
- SEBI Guidelines
- RBI Directions
Answer: PMLA Rules
PMLA rules require VASPs to maintain KYC records, transaction logs, and audit trails for 5 years. Enables regulatory oversight, investigation, and compliance verification. Critical for operational requirements.
The CBDC architecture that combines centralized control with distributed validation is called ________ Ledger.
Answer: Permissioned Distributed / Hybrid
Hybrid ledger: central bank controls issuance/monetary policy, distributed nodes validate transactions. Balances sovereignty, resilience, and performance for national digital currency systems.
Which CBDC feature enables automatic compliance with transaction limits and reporting?
- Programmable Rules
- Smart Contracts
- Both A and B
- Neither
Answer: Both A and B
Programmable CBDC with embedded rules can enforce AML limits, reporting thresholds, and policy conditions automatically. Enhances compliance efficiency while requiring careful privacy design.
Liquid cooling systems for data centers can achieve higher energy efficiency than air cooling.
- True
- False
Answer: True
Liquid cooling (direct-to-chip, immersion) removes heat more efficiently than air, enabling higher server density and lower PUE. Critical for high-performance computing and sustainable data center design.
Which standard verifies that carbon offset projects deliver additional emission reductions?
- Additionality Assessment
- Baseline Methodology
- Third-party Verification
- All of these
Answer: All of these
Carbon credit integrity requires: additionality proof (beyond business-as-usual), robust baseline setting, independent verification. Standards: Verra, Gold Standard ensure methodological rigor for credible offsets.
The technology that uses AI to optimize renewable energy forecasting and grid integration is called ________ Forecasting.
Answer: AI-based / Machine Learning
AI forecasting improves solar/wind power prediction using weather data, historical patterns, real-time sensors. Enables better grid balancing, reduced curtailment, and higher renewable penetration.
Which practice extends hardware lifespan to reduce electronic waste?
- Modular Design
- Repairability Standards
- Software Optimization
- All of these
Answer: All of these
Sustainable hardware: modular design enables component upgrades; repairability standards ensure spare parts availability; software optimization reduces need for hardware replacement. Critical for circular economy.
Carbon border adjustments aim to prevent carbon leakage by taxing imports from countries with weaker climate policies.
- True
- False
Answer: True
CBAM (EU) and similar mechanisms level playing field by imposing carbon costs on imports. Encourages global climate action while protecting domestic industries. India monitoring developments for trade policy.
Which technology enables real-time monitoring of methane emissions from oil/gas infrastructure?
- Satellite Remote Sensing
- Drone-based Sensors
- Ground-based Detectors
- All of these
Answer: All of these
Methane monitoring combines: satellite (GHGSat, Sentinel), drones for targeted surveys, ground sensors for continuous monitoring. Critical for leak detection, regulatory compliance, and climate mitigation.
The process of extracting oxygen from lunar regolith for life support is called ________ Extraction.
Answer: Oxygen / ISRU
Lunar regolith contains ~40% oxygen by weight. Extraction methods: molten regolith electrolysis, hydrogen reduction. Enables sustainable lunar bases by producing breathable air and rocket oxidizer.
Which technology mitigates signal degradation due to atmospheric conditions in satellite links?
- Adaptive Coding and Modulation
- Diversity Reception
- Power Control
- All of these
Answer: All of these
Satellite link adaptation: ACM adjusts modulation/coding based on channel quality; diversity uses multiple paths; power control compensates fading. Critical for reliable broadband service in variable weather.
Electric propulsion systems provide higher specific impulse than chemical rockets for satellite station-keeping.
- True
- False
Answer: True
Electric propulsion (ion, Hall thrusters) offers 5-10x higher specific impulse than chemical rockets, enabling longer satellite life with less propellant. Critical for GEO satellite operations and deep space missions.
Which CBDC design choice impacts monetary policy transmission?
- Remuneration Rate
- Holding Limits
- Interoperability
- All of these
Answer: All of these
CBDC design affects monetary policy: remuneration influences deposit rates, holding limits prevent bank disintermediation, interoperability affects payment system dynamics. Critical for central bank digital currency planning.
The Indian authority responsible for registering Virtual Asset Service Providers under PMLA is ________.
Answer: FIU-IND
Financial Intelligence Unit-India (FIU-IND) registers and supervises VASPs for AML/CFT compliance. Requires KYC, transaction monitoring, suspicious activity reporting. Critical for crypto regulatory framework.
Which privacy technique enables selective disclosure of transaction details in CBDC?
- Zero-Knowledge Proofs
- Ring Signatures
- Confidential Transactions
- All of these
Answer: All of these
Privacy-preserving CBDC: ZK-proofs verify without revealing data; ring signatures obscure sender; confidential transactions hide amounts. Balance user privacy with regulatory auditability requirements.
India's crypto tax framework allows deduction of acquisition cost when computing taxable income.
- True
- False
Answer: False
Section 115BBH taxes crypto income at 30% on gross transfer value, no deduction for acquisition cost except cost of acquisition. No loss offset allowed. Critical for accurate crypto tax compliance.