Q. Consider the following statements about the digital gold:
1.The price of digital gold is linked to that of physical gold.
2.It is created using blockchain technology.
3.It can never be converted into physical gold by the investors.
How many of the above statements are correct?
Answer: A
Notes:
Explanation: 1 and 2
Statement 1 is correct: Digital gold refers to buying gold without physically possessing the precious metal. The price of digital gold is linked to that of physical gold.
Statement 2 is correct: Digital gold is created using blockchain technology. It allows investors to buy, sell and store gold electronically.
Statement 3 is incorrect: Digital gold allows investors to convert their investment into physical gold whenever required. It can be converted into coins, bars, or jewellery.
Source: IE
