← IGCSE Computer Science Paper 1

Digital currency

Money that only exists electronically as data on computers. It has no coins or notes, cannot be held in your hand, and is stored and sent using devices.

Part of: IGCSE Computer Science 0478 — 5.2 Digital Currency — Module 3

Understanding Digital currency in IGCSE Computer Science Paper 1

What it does: The amount is just a value stored as data on a computer. Nothing physical represents it. A device such as a phone is used to send the money electronically to another person. A digital currency exists only electronically. It has no physical coins or notes. The money is only a number stored as data on a device. There is no coin or note to pick up.

Common mistakes: Digital currency cannot be held in your hand because it only exists as data. can_hold should be FALSE. Digital currency only exists electronically. It has no coins or notes, so form should be 'electronic'.

Class: _____________________  ·  Name: _____________________  ·  Date: _________

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This module's key terms are also in a printable crossword (Modules 500–509) and word search (Modules 490–509).

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Learning
Duo
Which statement describes a digital currency?
Money made of coins and notes that is stored in a bankMoney that only exists electronically, with no coins or notes
Matches
Digital currency is made of coins and notes
↓
Digital currency has no coins or notes. It only exists electronically, so it should say it has no physical form.
Applying
Meanings
Term
digital currency
Meaning
Money that only exists electronically as data on computers. It has no coins or notes, cannot be held in your hand, and is stored and sent using devices.
Practice
Digital currency is money that only exists electronically.
Testing
Gaps
, with no coins or notes.
Check Answer
Spots
3has_notes ← FALSE
4can_hold ← TRUE

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Quick Questions

1. Which statement describes a digital currency?
A. Money that only exists electronically, with no coins or notes ✓
B. Money made of coins and notes that is stored in a bank
A digital currency exists only electronically. It has no physical coins or notes.
2. Where does a digital currency exist?
A. As data on computers ✓
B. As metal discs in a safe
Digital currency is just data stored on computers. There is nothing physical to hold.
3. Can you hold a digital currency in your hand?
A. Yes, it is printed on special paper
B. No, it is not physical ✓
Digital currency has no physical form, so you cannot hold it in your hand like a coin or note.
4. Which one is a physical form of money, NOT a digital currency?
A. A cryptocurrency balance
B. A paper banknote ✓
Banknotes and coins are physical money. A cryptocurrency balance only exists electronically.
5. How is a digital currency stored and sent?
A. Using devices such as computers and phones ✓
B. By posting coins in an envelope
Digital currency is stored and sent electronically using devices. No physical items are moved.

Match the Pairs

digital currency → Money that only exists electronically, with no coins or notes
a balance of 50 units stored on a phone → Digital currency held as data on a device, which you cannot hold in your hand
Digital currency only exists as data on computers → balance = 120 stored in a database
Digital currency is stored and sent using devices → send(phone, 5, friend)
Digital currency is made of coins and notes → Digital currency has no coins or notes. It only exists electronically, so it should say it has no physical form.
You can keep digital currency in your pocket → Digital currency cannot be held in your hand. It is stored as data on a device, not carried as something physical.

Key Term

digital currency
Money that only exists electronically as data on computers. It has no coins or notes, cannot be held in your hand, and is stored and sent using devices.

Fill in the Blanks

1. A digital currency only exists electronically, with no coins or notes.
Hint: Type the word that describes how this money exists, using electronics.
2. Digital currency exists only as data on computers.
Hint: Type what kind of information digital currency is made of.
3. You cannot hold digital currency in your hand.
Hint: Type the body part that cannot hold digital money, unlike coins or notes.
4. Digital currency is stored and sent using devices such as phones and computers.
Hint: Type the general word for the equipment used to store and send it.
5. Money that is only electronic is called a digital currency.
Hint: Type the word for a system of money that completes the term.

Spot the Error

Question 1
A currency ← 'digital'
B has_coins ← FALSE
C has_notes ← FALSE
D can_hold ← TRUE
Line D — Digital currency cannot be held in your hand because it only exists as data. can_hold should be FALSE.
Question 2
A balance ← 50
B form ← 'coins and notes'
C OUTPUT form
Line B — Digital currency only exists electronically. It has no coins or notes, so form should be 'electronic'.
Question 3
A IF is_digital = TRUE THEN
B type ← 'digital currency'
C OUTPUT type
D ENDWHILE
Line D — An IF statement must be closed with ENDIF, not ENDWHILE, which closes a WHILE loop.
Question 4
A coins ← 25
B notes ← 0
C data ← 1000
D OUTPUT data
Line A — Digital currency has no coins, so the number of coins should be 0. The value exists only as data.
Question 5
A device ← 'phone'
B wallet ← 'on ' + device
C OUTPUT walet
Line C — The variable name is misspelled. The wallet stored on the device is called wallet, so it should be OUTPUT wallet.

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