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 at equivalency and therefore can be used as a medium of commercial transactions.Which of the statements given above are correct?

1. A

   1 and 2 only

   1 and 2 only. NFTs can represent physical or digital items and are unique on a chain. They are not fungible, so they are not a like-for-like medium of exchange.

2. B

   2 and 3 only

   2 and 3 only. Statement 3 contradicts non-fungibility.

3. C

   1 and 3 only

   1 and 3 only. Equivalency trading is what NFTs are not.

4. D

   1, 2 and 3

   All three. Fungible tokens (not NFTs) are the medium-of-exchange story.

Summary. Official key is (a) 1 and 2 only. An NFT is a unique token on a blockchain and can point at a digital or physical asset. Fungible tokens (INR, ETH) trade at equivalency; NFTs do not.