With reference to Non-Fungible Tokens (NFTs), consider the following statements : 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 a equivalency and therefore can be used as a medium of commercial transactions. Which of the statements given above are correct ?

Describes blockchain as a public ledger that everyone can inspect and is decentralised — establishes blockchain as a place where digital records can be stored transparently.

A student could combine this with the idea that a recordable ledger can hold token records to see if NFTs (as tokens) plausibly live on such ledgers.

Explains cryptocurrencies are based on decentralized ledger/blockchain technology and are digital money transferred over the internet — links digital assets/tokens to blockchain.

One can generalise from cryptocurrencies being blockchain-based to other digital tokens (like NFTs) also being stored on similar ledgers and then check if NFTs are described as tokens elsewhere.

Notes that transactions and issuance (mining) happen 'at the backend' on blockchain and that crypto assets are limited/uniquely generated — gives a pattern of digitally creating scarce assets via blockchain.

A student could infer that unique digital items (non-fungible) might similarly rely on blockchain-backed issuance to guarantee scarcity/ownership.

Mentions blockchain platforms combined with smart contracts used to create secure, transparent transfers — indicates blockchain can record and enforce programmable asset transfers.

A student could extend this to the idea that NFTs use smart contracts to encode uniqueness/ownership on-chain and then look for explicit NFT examples.

Defines ICO (Initial Coin Offering) as a means of raising funds using cryptocurrencies/coins — demonstrates the concept of issuing new digital tokens via blockchain-related projects.

From token issuance in ICOs, one might infer the existence of other token types (including unique tokens) issued and tracked via blockchain and seek confirmation.

Explains 'token currency' as coins declared to represent value of other metal coins, showing that the word 'token' can mean a representative unit whose value depends on rules rather than intrinsic sameness.

A student could relate this to NFTs by asking whether an NFT's value is intrinsic or assigned by rules/metadata and therefore whether different NFTs could be legally declared interchangeable.

Describes barter as direct exchange 'without the use of tokens,' highlighting that tokens are used to standardize value and enable interchangeability in transactions.

One could use that distinction to probe whether NFTs function as standardized interchangeable tokens or as unique items preventing one-for-one substitution.

Lists financial instruments that are 'convertible' versus 'non-convertible', illustrating a formal distinction between assets that can be changed into other forms and those that cannot.

A student could analogize 'non-fungible' to 'non-convertible' (unique, not interchangeable) and ask if NFTs are described or regulated as convertible/interchangeable instruments.

Notes that payment systems and access are regulated and that different classes of providers and instruments exist for facilitating payments, implying token-types and their uses may be governed differently.

Use this to check whether NFTs are treated within payment/settlement frameworks as interchangeable payment tokens or as distinct digital assets with separate rules.

Uses 'Token Grant' to mean a symbolic/small sum, showing 'token' can imply symbolic uniqueness rather than fungible equivalence.

From this, a student might question whether 'token' in 'NFT' implies symbolic/unique status (supporting non‑fungibility) rather than one-for-one interchangeability.

Explains that crypto‑currencies (digital tokens) are not illegal to transact in and can be accepted for transactions, establishing that novel digital tokens can circulate as means of exchange.

A student could extend this by noting that NFTs are another kind of digital token and therefore might likewise be offered and accepted in exchange on markets or between parties.

Says CBDCs benefit from blockchain/Distributed Ledger Technology like cryptocurrencies and are usable for payments, linking blockchain‑based assets to payment/transaction uses.

One could infer that blockchain‑based tokens (including NFTs) can leverage similar infrastructure to enable transfers/payments between parties.

Describes that digital creations (films, music, software, online services) are bought and sold because of their informational value, and rights can be used to negotiate payment.

A student could treat NFTs as digital certificates tied to creative works and therefore plausibly tradable as a way to buy/sell rights or ownership interests in such creations.

Notes digital wallets and person‑to‑merchant transactions (e‑rupee) enabling digital transfers and merchant payments via mobile devices.

Combine this with knowledge that NFTs are digital items stored/managed electronically to hypothesize that wallets/marketplaces could support NFT transactions with merchants or individuals.

Discusses e‑commerce marketplace rules and online selling, showing that online platforms facilitate commercial exchange of goods.

A student could extend this to suggest that online marketplaces could host listings for NFTs, enabling commercial sale and resale under platform rules.