Attempt this previous-year question. The correct option stays hidden until you choose.
Which of the following statements about Real-World Assets (RWA) Tokenization are correct ?
1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
2. Tokenization of real world assets offers 24 x 7 access, promoting financial inclusion.
3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below :
Pick an option to check yourself.
Approach: *Understand the core mechanism of blockchain-based asset management and its potential to democratize finance by removing traditional market intermediaries.*
- **Correct Answer:** (a) 1, 2 and 3
- **Statement 1 is correct:** Tokenization involves creating a digital representation of a physical asset (like real estate, gold, or art) on a blockchain. This ensures transparency, security, and immutability of ownership records.
- **Statement 2 is correct:** Traditional markets (like stock exchanges) have fixed trading hours. Blockchain-based tokenization operates on a decentralized network, enabling 24/7 trading and fractional ownership, which significantly lowers the capital requirement for entry and promotes financial inclusion.
- **Statement 3 is correct:** By allowing 'fractionalization' (breaking a large, expensive asset into smaller, affordable tokens), tokenization enables retail investors in India to access high-growth asset classes (e.g., commercial real estate or private equity) that were previously reserved for institutional or high-net-worth investors.
https://firebasestorage.googleapis.com/v0/b/gyangram-aeee0.firebasestorage.app/o/library%2Fimage%2FKzIa5W9LY3y15lQQBO1e.png?alt=media&token=384c185a-2238-4e32-8163-e97a3579978b
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram