New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    What is the main reason behind Zimbabwe's plan to launch

    a digital currency backed by gold reserves?
    A To replace the U.S. dollar as the national currency Correct Answer Incorrect Answer
    B To increase the availability of physical gold in the country Correct Answer Incorrect Answer
    C To reduce the reliance on paper currency Correct Answer Incorrect Answer
    D To boost the country's tourism industry Correct Answer Incorrect Answer
    E To increase the country's gold reserves Correct Answer Incorrect Answer

    Solution

    Zimbabwe will launch a digital currency by introducing “tokens” that are backed by gold reserves and can be transferred between people and businesses as a form of payment. The move is aimed at shoring up Zimbabwe’s faltering national currency, the Zimbabwe dollar, which is fast depreciating amid years long economic woes in the southern African nation. The Bahamas, Jamaica and Nigeria have already launched digital currencies backed by their central banks, with several other countries, including China, running trial projects. About Zimbabwe Capital: Harare                       Currency: Zimbabwean dollar; ‎ U.S. dollar‎

    Practice Next

    Relevant for Exams: