MML201- 3

Decentralized finance (Defi) provides financial instruments without the use of intermediaries like brokerages, exchanges, or banks.

• True

• False

Blockchain-based smart contract is used in:

• Centralized finance

• Decentralized finance

People can use DeFi platforms to:

• lend or borrow money

• speculate with derivatives

• trade cryptocurrencies

• all of the above

The main difference between centralized/decentralized finance: centralized finance has a bank/agency involved whereas, in decentralized finance, blockchain smart-contract protocol is used.

• True

• False

In DeFi, you'd use your decentralized finance application (dApp) to enter your loan needs.

• True

• False

In _________ finance, you just need to agree to one of the lender's terms and receive your loan.

• Centralized

• Decentralized

A cryptocurrency is a decentralized digital currency.

• True

• False