MC7. What is the main advantage of a CBDC over physical cash?
A. Lower transaction costs
B. Increased security
C. Improved traceability
D. Greater convenience
Answer:C
MC7. What is the main advantage of a CBDC over physical cash?
A. Lower transaction costs B. Increased security C. Improved traceability D. Greater convenience
Explanation: CBDCs offer improved traceability compared to physical cash as transactions can be tracked and monitored by central banks, which can help prevent illicit activities such as money laundering.