According to the author, regarding the mismatch in P and in Q:

P. The mismatch between the durations of deposits and loans
Q. The mismatch between the speed of transactional units and settlement units

A. Bitcoin will solve P and Q.
B. Bitcoin will solve P.
C. Bitcoin will solve Q.
D. Bitcoin will solve neither P nor Q.

Question

According to the author, regarding the mismatch in P and in Q:

P. The mismatch between the durations of deposits and loans
Q. The mismatch between the speed of transactional units and settlement units

A. Bitcoin will solve P and Q.
B. Bitcoin will solve P.
C. Bitcoin will solve Q.
D. Bitcoin will solve neither P nor Q.

BlackTom AI · Accepted Answer

To approach this question, first identify what P and Q refer to: P is the mismatch between the durations of deposits and loans, while Q is the mismatch between the speed of transactional units and settlement units. Now evaluate each option in light of what the author claims.

Option A: 'A. Bitcoin will solve P and Q.' This claim asserts that Bitcoin can simultaneously fix both mismatches. However, the author’s position, as given, does not endorse Bitcoin as a solution for both problems; the reasoning provided emphasizes limitations or partial fixes rather than a blanket solution to both P and Q. Therefore, this option overstates Bitcoin’s purported reach and is not aligned with the author’s stance.

Option B: 'B. Bitcoin will solve P.' This states that Bitcoin would address only the mismatch between deposit/loan durations (P). If the author argues that the duration mismatch remains unresolved or that Bitcoin does not address it, this option would be incorrect. In typical analyses, the duration mismatch involves long-term funding and credit risk considerations that are not directly solved by the design of a cryptocurrency’s settlement properties.

Option C: 'C. Bitcoin will solve Q.' This option claims Bitcoin addresses the mismatch between the speed of transactional units and settlement units (Q). If the author contends that Bitcoin can improve or align the speed mismatch by enabling faster or more synchronized settlement, then this option would be consistent with the author’s view about Q. This is the correct alignment if the author asserts that Bitcoin mitigates the speed/settlement gap but not the duration/loan-deposit gap.

Option D: 'D. Bitcoin will solve neither P nor Q.' This asserts that Bitcoin solves neither mismatch. If the author identifies at least one of the mismatches as being addressed by Bitcoin (specifically Q, per option C), then this option would be incorrect because it denies the partial remedy for Q.

In summary, the correctness hinges on whether the author assigns a beneficial role to Bitcoin specifically for Q (speed/settlement mismatch) while not claiming a solution for P (duration mismatch). If the text supports Bitcoin solving Q but not P, option C accurately reflects that stance, while A overclaims, B inaccurately assigns the fix to P alone, and D denies the partial fix suggested for Q.

APS1050H F LEC0101 Broken Money Quiz

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