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INFORMATION & COMMUNICATION TECHNOLOGIES (ICT)

Prelims Previous Year Questions

Q.1) In addition to fingerprint scanning. which of the following can be used in the biometric identification of a person? (2014)

  1. Iris scanning
  2. Rentinal scanning
  3. Voice recognition

Select the correct answer using the code given below:

A.           1 only
B.           2 and 3 only
C.            1 and 3 only
D.           1, 2 and 3

Answer: D

Explanation:

Biometric identification refers to the process of recognizing individuals based on their unique physical or behavioral characteristics. Here’s an explanation of the mentioned biometric identification methods:

  1. Iris Scanning:
    • Description: Iris scanning involves capturing the unique patterns of the colored part of the eye (iris), which includes various features such as furrows, rings, and freckles.
    • Uniqueness: The iris patterns are highly unique to individuals, even among identical twins.
    • Application: It is commonly used in access control systems, border control, and other security applications.
  2. Retinal Scanning:
    • Description: Retinal scanning involves capturing the unique patterns of blood vessels in the thin layer of tissue at the back of the eye (retina).
    • Uniqueness: Retinal patterns are highly unique, and this method is considered to be one of the most accurate biometric technologies.
    • Application: Due to its high accuracy, it is used in high-security environments such as military installations and government facilities.
  3. Voice Recognition:
    • Description: Voice recognition, or speaker recognition, involves analyzing the unique characteristics of a person’s voice, such as pitch, tone, and speech patterns.
    • Uniqueness: Each person has a distinctive voice, and voiceprints can be used for identification.
    • Application: Voice recognition is used in various applications, including voice-controlled devices, phone authentication systems, and security access systems.

Q.2) With reference to Near Field Communi- cation (NFC) Technology’, which of the following statements is/are correct? (2015)

  1. It is a contactless communication technology that uses electromagnetic radio fields.
  2. NFC is designed for use by devices which can be at a distance of even a metre from each other.
  3. NFC can use encryption when sending sensitive information.

Select the correct answer using the code given below.

A.           1 and 2 only
B.           3 only
C.            1 and 3 only
D.           1, 2 and 3

Answer: C

Explanation:

  1. It is a contactless communication technology that uses electromagnetic radio fields:
    • Correct: Near Field Communication (NFC) is indeed a contactless communication technology that uses electromagnetic radio fields to enable communication between devices in close proximity (typically within a few centimeters).
  2. NFC is designed for use by devices which can be at a distance of even a meter from each other:
    • Incorrect: NFC is specifically designed for short-range communication, and the effective distance is typically within a few centimeters, not a meter. It is intended for close proximity, making it different from other wireless communication technologies like Bluetooth, which have a longer range.
  3. NFC can use encryption when sending sensitive information:

Correct: NFC can indeed use encryption to secure the communication when sensitive information is being transmitted. This ensures a level of security, especially when NFC is used for applications such as mobile payments or data exchange.

Q.3) With reference to LiFi, recently in the news, which of the following statements is/are correct? (2016)

  1. It uses light as the medium for high- speed data transmission.
  2. It is a wireless technology and is -several times faster than Wi-Fi.

Select the correct answer using the code. given below.

A.           1 only
B.           2 only
C.            Both 1 and 2
D.           Neither 1 nor 2

Answer: C

Explanation:

  1. It uses light as the medium for high-speed data transmission:
    • Correct: LiFi, or Light Fidelity, is a wireless communication technology that uses light-emitting diodes (LEDs) for data transmission. It utilizes light as the medium for transmitting data, typically using visible light communication (VLC) or infrared communication.
  2. It is a wireless technology and is several times faster than Wi-Fi:
    • Correct: LiFi is considered a wireless communication technology, and it has the potential to be significantly faster than traditional Wi-Fi. The high-speed data transmission is achieved by modulating the light emitted by LED bulbs, allowing for faster and more secure data transfer.

Q.4) ‘Project Loon’, sometimes seen in the news, is related to (2016)

A.           waste management technology
B.           wireless communication technology 
C.            solar power production technology 
D.           water conservation technology

Answer: B

Explanation:

  • Project Loon is a technology developed by Alphabet Inc. (Google’s parent company) that aims to provide Internet access to rural and remote areas using high-altitude balloons placed in the stratosphere. These balloons act as floating cell towers, creating a network that can provide connectivity to users on the ground. The project is designed to extend Internet access to areas with limited infrastructure or in times of emergency when communication networks are disrupted.

Q.5) Regarding DigiLocker’, sometimes seen in the news, which of the following statements is/are correct? (2016)

  1. It is a digital locker system offered by the Government under Digital India Programme.
  2. It allows you to access your e-documents irrespective of your physical location.

Select the correct answer using the code given below.

A.           1 only
B.           2 only
C.            Both 1 and 2
D.           Neither 1 nor 2

Answer: C

Explanation:

  • DigiLocker is indeed a digital locker system provided by the Government of India under the Digital India initiative.
  • It allows users to store and access electronic versions of their documents, such as Aadhar card, driving license, PAN card, and more. Users can access these e-documents from anywhere, making it convenient and reducing the need for carrying physical documents.

Q.6) In India, it is legally mandatory for which of the following to report on cyber security incidents? (2017)

  1. Service providers
  2. Data centres
  3. Body corporate

Select the correct answer using the code given below:

A.           1 only
B.           1 and 2 only
C.            3 only
D.           1, 2 and 3

Answer: D

Explanation:

  • The Union Government under section 70B of the IT Act, 2000 established and notified rules of CERT-In in 2014. According to Rule 12(1)(a), it is mandatory for service providers, intermediaries, data centers and corporate bodies to report cyber security incidences to CERT-In within a reasonable time of occurrence of the incident.

Q.7) The identity platform ‘Aadhaar’ provides open “Application Programming Interfaces (APIs)”, What does it imply? (2018)

  1. It can be integrated into any electronic device.
  2. Online authentication using iris is possible.

Which of the statements given above is/are correct?

A.           1 only
B.           2 only
C.            Both 1 and 2
D.           Neither 1 nor 2

Answer: C

Explanation:

  1. It can be integrated into any electronic device:
    • Aadhaar provides open “Application Programming Interfaces (APIs),” allowing it to be integrated into various electronic devices and systems. This facilitates interoperability and the inclusion of Aadhaar-based authentication in different applications.
  2. Online authentication using iris is possible:
    • The Aadhaar system supports various modes of authentication, including fingerprint, iris, and OTP (One-Time Password). Therefore, online authentication using iris is indeed possible under the Aadhaar system.

Q.8) Which of the following is/are the aim/aims of “Digital India” Plan of the Government of India? (2018)

  1. Formation of India’s own Internet: companies like China did.
  2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
  3. Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places, and major tourist centres.

Select the correct answer using the code given below:

A.           1 and 2 only
B.           3 only
C.            1 and 3 only
D.           1, 2 and 3

Answer: B

Explanation:

  1. Formation of India’s own Internet: companies like China did.
    • This statement is not one of the aims of the “Digital India” plan. The aim is not to create a separate internet but to enhance the digital infrastructure and connectivity within the existing internet framework.
  2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
    • This statement is also not a specific aim of the “Digital India” plan. The plan focuses on various initiatives to promote digital literacy, digital infrastructure, and digital delivery of services.
  3. Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places, and major tourist centres.
    • This is a key aim of the “Digital India” plan. It emphasizes the goal of extending digital connectivity to rural areas, schools, public places, and tourist centers to promote inclusivity and accessibility.

Q.9) The terms WannaCry, Petya and Eternal Blue” sometimes mentioned in the news recently are related to (2018)

A.           Exoplanets
B.           Cryptocurrency
C.            Cyber attacks
D.           Mini satellite

Answer: C

Explanation:

  • WannaCry, Petya, and EternalBlue are terms associated with cyber attacks. These were specific types of malware and cyber threats that gained significant attention in the news.
  • WannaCry was a ransomware attack that occurred in May 2017, infecting computers worldwide by encrypting data and demanding ransom payments in Bitcoin.
  • Petya (or NotPetya) was another type of ransomware that caused a global cyber attack in June 2017. It affected organizations and critical infrastructure.
  • EternalBlue is an exploit that was developed by the U.S. National Security Agency (NSA) but was later leaked. It played a role in the spread of both WannaCry and Petya.

Q.10) When the alarm of your smartphone rings in the morning, you wake up and tap it to stop the alarm which causes your geyser to be switched on automatically. The smart mirror in your bathroom shows the day’s weather and also indicates the level of water in your overhead tank. After you take some groceries from your refrigerator for making breakfast, it recognises the shortage of stock in it and places an order for the supply of fresh grocery items. When you step out of your house and lock the door, all lights, fans, geysers and AC machines get switched off automatically. On your way to office, your car warns you about traffic congestion ahead and suggests an alternative route, and if you are late for a meeting, it sends a message to your office accordingly.

            In the context of emerging communication technologies, which one of the following terms best applies to the above scenario? (2018)

A.           Border Gateway Protocol
B.           Internet of Things
C.            Internet Protocol
D.           Virtual Private Network

Answer: B

Explanation:

  • The scenario described involves various devices and systems interconnected through the Internet, allowing them to communicate and share data. This is a characteristic feature of the Internet of Things (IoT). In IoT, everyday objects are embedded with sensors, software, and other technologies to connect and exchange data with other devices over the Internet. The described scenario includes smart devices such as a smartphone, smart mirror, refrigerator, and car, all interacting and making decisions based on data exchange, which aligns with the concept of IoT.

Q.11) “3D printing” has applications in which of the following? (2018)

  1. Preparation of confectionery items
  2. Manufacture of bionic ears
  3. Automotive industry
  4. Reconstructive surgeries
  5. Data processing technologies

Select the correct answer using the code given below:

A.           1,3 and 4 only
B.           2, 3 and 5 only
C.            1 and 4 only
D.           1,2,3, 4 and 5

Answer: D

Explanation:

  1. Preparation of confectionery items: While 3D printing can be used for creating intricate designs and molds, it is not a common method for preparing everyday confectionery items. Traditional methods are still widely used in this context.
  2. Manufacture of bionic ears: This is correct. 3D printing is extensively used in the medical field, including the manufacture of customized prosthetics and bionic body parts.
  3. Automotive industry: This is correct. 3D printing is used in the automotive industry for prototyping, creating lightweight components, and producing complex geometries.
  4. Reconstructive surgeries: This is correct. 3D printing is employed in reconstructive surgeries for creating patient-specific implants and models, allowing for precise and customized solutions.
  5. Data processing technologies: 3D printing associated with data processing as well.

Q.12) With reference to communication technologies, what is/are the difference/ differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)? (2019)

  1. LTE is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
  2. LTE is data-only technology and VoLTE is voice-only technology.

Select the correct answer using the code given below

A.           1 only
B.           2 only
C.            Both 1 and 2
D.           Neither 1 nor 2

Answer: D

Explanation:

  1. LTE is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G: This statement is incorrect. LTE (Long-Term Evolution) is marketed as 4G (fourth generation), not 3G. VoLTE (Voice over Long-Term Evolution) is an enhancement of LTE to provide voice communication over the 4G network. So, LTE is associated with 4G, not 3G.
  2. LTE is a data-only technology and VoLTE is a voice-only technology: This statement is also incorrect. LTE (Long-Term Evolution) is a standard for wireless broadband communication and is commonly associated with high-speed data transmission. VoLTE (Voice over Long-Term Evolution) is an extension of LTE that enables voice communication over the LTE network. Both LTE and VoLTE support data, but VoLTE specifically focuses on delivering voice services over LTE.

Q.13) In the context of digital technologies for entertainment, consider the following statements: (2019)

  1. In Augmented Reality (AR), a simulated environment is created and the physical world is completely shut out.
  2. In Virtual Reality (VR), images generated from a computer are projected onto real-life objects or surroundings.
  3. AR allows individuals to be present. in the world and improves the experience using the camera of smart-phone or PC.
  4. VR closes the world, and transposes an individual, providing complete immersion experience.

Which of the statements given above is/are correct?

A.           1 and 2 only
B.           3 and 4
C.            1, 2 and 3
D.           4 only

Answer: B

Explanation:

  • Virtual Reality (VR): VR is a computer-generated simulation of a three-dimensional environment that users can interact with. It immerses users in a completely artificial, digital environment, shutting out the real world.
  • Augmented Reality (AR): AR overlays computer-generated content onto the real-world environment, enhancing the user’s perception of the real world.
  1. Immersion:
  • VR: Provides a high level of immersion by completely replacing the real world with a virtual one. Users often use VR headsets to block out the real environment.
  • AR: Enhances the real-world environment by overlaying digital information. Users can still see and interact with the real world while viewing additional information.
  1. Environment:
  • VR: Creates a simulated environment that is entirely computer-generated. Users are isolated from the real world.
  • AR: Enhances the existing environment by adding digital elements. Users remain aware of and connected to the real world.

Q.14) In the context of wearable technology, which of the following tasks is/are accomplished by wearable devices? (2019)

  1. Location identification of a person
  2. Sleep monitoring of a person
  3. Assisting the hearing impaired person

Select the correct answer using the code given below.

A.           1 only
B.           2 and 3 only
C.            3. only
D.           1, 2 and 3

Answer: D

Explanation:

  1. Location identification of a person:
    • Many wearable devices, such as smartwatches and fitness trackers, come equipped with GPS (Global Positioning System) or other location tracking technologies. These devices can track and provide information about the user’s location. This feature is often used for fitness tracking, navigation, or emergency services.
  2. Sleep monitoring of a person:
    • Wearable devices designed for health and fitness often include sleep monitoring features. These devices use sensors, such as accelerometers, to detect movement patterns and analyze them to determine different sleep stages. Users can access data about their sleep duration, quality, and patterns through accompanying mobile apps or other interfaces.
  3. Assisting the hearing impaired person:
    • Wearable devices can be designed to assist individuals with hearing impairments. For example, smart hearing aids or devices like bone-conduction headphones can connect to smartphones or other devices to provide enhanced sound or enable communication through various applications. Some devices may also offer features like speech-to-text to aid those with hearing difficulties.

Q.15) With the present state of development, Artificial Intelligence can effectively do which of the following? (2020)

  1. Bring down electricity consumption in industrial units
  2. Create meaningful short stories and songs
  3. Disease diagnosis
  4. Text-to-Speech Conversion
  5. Wireless transmission of electrical energy

Select the correct answer using the code given below:

A.           1, 2, 3 and 5 only
B.           1, 3 and 4 only
C.            2, 4 and 5 only
D.           1, 2, 3, 4 and 5

Answer: B

Explanation:

  1. Bring down electricity consumption in industrial units:
    • AI can be applied to optimize energy consumption in industrial units through predictive analytics, automation, and smart systems. Therefore, option 1 is correct.
  2. Create meaningful short stories and songs:
    • AI, particularly in the field of natural language processing and machine learning, has been used to generate creative content, including short stories and songs but they may be or may not be Therefore, option 2 is incorrect.
  3. Disease diagnosis:
    • AI has shown promising results in disease diagnosis, especially in medical imaging and pattern recognition. AI algorithms can assist in analyzing medical data for more accurate diagnoses. Therefore, option 3 is correct.
  4. Text-to-Speech Conversion:
    • AI is commonly used for text-to-speech conversion. Natural language processing and synthesis techniques enable machines to convert written text into spoken words. Therefore, option 4 is correct.
  5. Wireless transmission of electrical energy:
    • Wireless transmission of electrical energy is a concept that involves engineering and physics principles rather than AI. AI is not directly involved in the wireless transmission of electrical energy. Therefore, option 5 is not correct.

Q.16) With reference to Visible Light Communication (VLC) technology, which of the following statements are correct? (2020)

  1. VLC uses electromagnetic spectrum wavelengths 375 to 780 nm.
  2. VLC is known as long-range optical wireless communication.
  3. VLC can transmit large amounts of data faster than Bluetooth.
  4. VLC has no electromagnetic interference.

Select the correct answer using the code given below:

A.           1, 2 and 3 only
B.           1, 2 and 4 only
C.            1, 3 and 4 only
D.           2, 3 and 4 only

Answer: C

Explanation:

  1. VLC uses electromagnetic spectrum wavelengths 375 to 780 nm. (Correct)
    • VLC utilizes visible light, which falls within the electromagnetic spectrum wavelengths of 375 to 780 nm.
  2. VLC is known as long-range optical wireless communication. (Incorrect)
    • VLC is generally considered suitable for short-range communication and is not typically described as “long-range.”
  3. VLC can transmit large amounts of data faster than Bluetooth. (Correct)
    • VLC has the potential to transmit data at high speeds, and it can be faster than some wireless technologies like Bluetooth, especially in scenarios where high data rates are required.
  4. VLC has no electromagnetic interference. (Correct)
    • Since VLC uses visible light, it does not cause electromagnetic interference with other wireless communication systems that operate in radio frequencies.

Q.17) With reference to “Blockchain Technology”, consider the following statements: (2020)

  1. It is a public ledger that everyone can inspect, but which no single user controls.
  2. The structure and design of blockchain is such that all the data in it are about cryptocurrency only.
  3. Applications that depend on basic features of blockchain can be developed without anybody’s permission.

Which of the statements given above is/are correct?

A.           1 only
B.           1 and 2 only
C.            2 only
D.           1 and 3 only

Answer: A

Explanation:

  1. It is a public ledger that everyone can inspect, but which no single user controls.
    • This statement is correct. Blockchain is a decentralized and distributed ledger that is maintained by a network of nodes (computers) where each node has a copy of the entire ledger. It is designed to be transparent and open for inspection by anyone, but no single entity has control over the entire blockchain.
  2. The structure and design of blockchain are such that all the data in it are about cryptocurrency only.
    • This statement is incorrect. While blockchain technology was initially created for cryptocurrency transactions (such as Bitcoin), its applications have expanded far beyond cryptocurrency. Blockchain can be used to record any type of transaction or information in a secure, transparent, and tamper-resistant manner. It has applications in various industries such as finance, supply chain, healthcare, and more.
  3. Applications that depend on basic features of blockchain can be developed without anybody’s permission.
    • This statement is incorrect. Blockchain applications, especially public blockchains, often require the consensus of participants in the network to make changes or add new transactions. Permissionless blockchains, like Bitcoin, allow anyone to participate, but changes to the protocol typically require consensus. On the other hand, there are also permissioned blockchains where access and participation are restricted to a specific group of participants.

Q.18) Consider the following: (2022)

  1. Aarogya Setu
  2. COWIN
  3. Digi Locker
  4. DIKSHA

Which of the above are built on top of open-source digital platforms?

A.           1 and 2 only
B.           2, 3 and 4 only
C.            1, 3 and 4 only
D.           1, 2, 3 and 4

Answer:

Explanation:

Open-source digital platforms are software systems or frameworks whose source code is made available to the public. Users can inspect, modify, and distribute the code. Open-source platforms are often collaborative, allowing developers worldwide to contribute to their improvement. Here are some notable examples:

  1. Linux Operating System: Linux is an open-source operating system kernel. Various distributions (distros) like Ubuntu, Fedora, and Debian build on the Linux kernel.
  2. Apache Web Server: The Apache HTTP Server is an open-source web server software. It’s widely used for hosting websites.
  3. WordPress: WordPress is an open-source content management system (CMS) used for building websites and blogs. It’s highly customizable with a large community of developers.
  4. Android Operating System: Android, the mobile operating system, is open source. It’s developed by the Open Handset Alliance, led by Google.
  5. Mozilla Firefox: Firefox is an open-source web browser developed by Mozilla. Its source code is available for public inspection and modification.
  6. js: Node.js is an open-source JavaScript runtime used for server-side programming. It enables the execution of JavaScript code outside a web browser.
  7. Django: Django is an open-source web framework for building web applications using the Python programming language.
  8. Git: Git is an open-source distributed version control system used for tracking changes in source code during software development.
  9. Eclipse IDE: Eclipse is an open-source integrated development environment (IDE) used for Java development but extensible for various programming languages.
  10. TensorFlow: TensorFlow is an open-source machine learning framework developed by the Google Brain team.

Q.19) With reference to Web 3.0, consider the following statements: (2022)

  1. Web 3-0 technology enables people to control their own data.
  2. In Web 30 world, there can be blockchain based social networks.
  3. Web 3-0 is operated by users collectively rather than a corporation.

Which of the statements given above are” correct?

A.           1 and 2 only
B.           2 and 3 only
C.            1 and 3 only
D.           1, 2 and 3

Answer: D

Explanation:

  1. Web 3.0 technology enables people to control their own data: Web 3.0 is often associated with the idea of decentralization. In the context of data, this means that individuals have more control over their personal data. Unlike Web 2.0, where large corporations often control and monetize user data, Web 3.0 envisions a shift towards user-centric control. Decentralized technologies, such as blockchain, play a role in giving users greater ownership and control over their data.
  2. In Web 3.0 world, there can be blockchain-based social networks: Web 3.0 embraces blockchain technology, which allows for the creation of decentralized applications (DApps) and platforms. Blockchain-based social networks are an example of decentralized applications in the Web 3.0 ecosystem. These social networks aim to provide users with more privacy, control over their data, and sometimes even token-based incentives for participation.
  3. Web 3.0 is operated by users collectively rather than a corporation: The idea of decentralization extends beyond data control and includes the governance and operation of online platforms. In a Web 3.0 paradigm, the control and decision-making power are distributed among the user community rather than being concentrated in a central authority or corporation. Blockchain’s consensus mechanisms and smart contracts are used to enable collective decision-making.

Q.20) With reference to “Software as a Service (SaaS)”, consider the following statements: (2022)

  1. SaaS buyers can customise the user interface and can change data fields.
  2. SaaS users can access their data through their mobile devices.
  3. Outlook, Hotmail, and Yahoo! Mail are forms of SaaS.

Which of the statements given above are correct?

A.           1 and 2 only
B.           2 and 3 only
C.            1 and 3 only
D.           1, 2 and 3

Answer: D

Explanation:

  1. SaaS buyers can customize the user interface and can change data fields: In a Software as a Service (SaaS) model, users typically access software applications over the internet. While the level of customization may vary depending on the specific SaaS offering, many SaaS applications allow users to customize the user interface to some extent and adjust data fields to meet their specific needs.
  2. SaaS users can access their data through their mobile devices: One of the advantages of SaaS is that it provides accessibility from various devices, including mobile devices. Users can access SaaS applications and their data through web browsers or dedicated mobile apps, making it convenient to work from different devices.
  3. Outlook, Hotmail, and Yahoo! Mail are forms of SaaS: These are examples of web-based email services, which fall under the category of Software as a Service (SaaS). Users access their email accounts through web browsers, and the software is hosted and maintained by the service providers (Microsoft for Outlook/Hotmail and Yahoo! for Yahoo! Mail). Users do not need to install or manage the email software locally.

Q.21) Which one of the following is the context in which the term “qubit” is mentioned ? (2022)

A.           Cloud Services
B.           Quantum Computing
C.            Visible Light Communication Technologies
D.           Wireless Communication Technologies

Answer: B

Explanation:

  • The term “qubit” is associated with quantum computing. A qubit, or quantum bit, is the basic unit of information in quantum computing. Unlike classical bits, which can exist in a state of 0 or 1, qubits can exist in multiple states simultaneously, thanks to the principles of quantum superposition. This property allows quantum computers to perform certain types of calculations much faster than classical computers. Quantum computing is an emerging field that leverages the principles of quantum mechanics to process information in ways that were previously thought to be impossible with classical computing.Top of Form

Q.22) Consider the following communication technologies: (2022)

  1. Closed-circuit Television.
  2. Radio Frequency Identification
  3. Wireless Local Area Network

Which of the above are considered Short-Range devices/technologies?

A.           1 and 2 only
B.           2 and 3 only
C.            1 and 3 only
D.           1, 2 and 3

Answer: D

Explanation:

Short Range Devices (SRD) are radio devices that offer a low risk of interference with other radio services, usually because their transmitted power, and hence their range, is low. The definition ‘Short Range Device’ may be applied to many different types of wireless equipment, including various forms of:

  1. Access control (including door and gate openers)
  2. Alarms and movement detectors
  3. Closed-circuit television (CCTV)
  4. Cordless audio devices, including wireless microphones
  5. Industrial control
  6. Local Area Networks
  7. Medical implants
  8. Metering devices
  9. Remote control
  10. Radio frequency identification (RFID)
  11. Road Transport Telematics

Q.23) With reference to Non-Fungible Tokens (NFTs), consider the following statements: (2022)

  1. They enable the digital representation of physical assets
  2. They are unique cryptographic tokens that exist on a blockchain.
  3. They can be traded or exchanged at equivalency and therefore can be used as transactions. medium of commercial

Which of the statements given above are correct?

A.           1 and 2 only
B.           2 and 3 only
C.            1 and 3 only.
D.           1, 2 and 3

Answer: A

Explanation:

  1. They enable the digital representation of physical assets.
    • This statement is correct. NFTs can indeed represent ownership or proof of authenticity for various types of assets, including physical assets. For instance, an NFT could represent ownership of a piece of real estate, a collectible item, or any other tangible asset.
  2. They are unique cryptographic tokens that exist on a blockchain.
    • This statement is correct. NFTs are unique because they are indivisible and have distinct properties that differentiate them from each other. They are typically created and managed using blockchain technology, which ensures the security and immutability of ownership records.
  3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions.
    • This statement is incorrect. NFTs are non-fungible, meaning each token is unique and not interchangeable on a one-to-one basis with another token. Unlike fungible assets such as cryptocurrencies (e.g., Bitcoin), NFTs cannot be used as a medium of exchange in traditional commercial transactions. They are primarily used for representing ownership of digital or physical assets and are typically traded on specialized marketplaces

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