This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The most used tool of monetary policy is the buying and selling of government bonds (securities). This is called A) Open Market Operations. B) Closed Market Operations. C) Federal Funds Bonds. D) Discount Rate. Show Answer Correct Answer: A) Open Market Operations. 2. Banks and credit unions generate money in the economy by: A) Selling governments bonds. B) Making loans. C) Printing money. D) All of these are correct. Show Answer Correct Answer: B) Making loans. 3. Cow milk is not an effective form of money because it is not: A) Portable. B) Durable. C) Consistent. D) Divisible. Show Answer Correct Answer: B) Durable. 4. Which one is money? A) Cash. B) Check. C) Debit card. D) All the above. Show Answer Correct Answer: D) All the above. 5. A listing of financial assets owned by an individual A) Stock Split. B) Portfolio. C) Principal. D) Diversification. Show Answer Correct Answer: B) Portfolio. 6. The fact that money must withstand the wear and tear that comes from being used over and over again is a measure of its A) Portability. B) Age. C) Durability. D) Currency. Show Answer Correct Answer: C) Durability. 7. A prearranged loan to a person available when they need money, used at stores, firms, etc. and does not have to be use all at once, or at all. A) Liquidity. B) Debit Card. C) Credit Card. D) Mortgage. Show Answer Correct Answer: C) Credit Card. 8. The financial intermediaries that the average person interacts with most frequently are A) Banks. B) Exchanges. C) Finance companies. D) Over-the-counter markets. Show Answer Correct Answer: A) Banks. 9. The first true bank of America was A) The Bank of America. B) The Central Bank. C) The Federal Reserve System. D) The FDIC. Show Answer Correct Answer: C) The Federal Reserve System. 10. Roman Emperors ..... their money. A) Deflated. B) Invested. C) Inflated. D) Hoarded. Show Answer Correct Answer: C) Inflated. 11. Which of these is not a characteristic of currency? A) Durability. B) Acceptibility. C) Uniformity. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 12. When money stays the same, it is considered as what? A) Divisible. B) Unable to counterfeit. C) Transportable. D) Durable. Show Answer Correct Answer: D) Durable. 13. The value lost when one alternative is chosen over another A) Opportunity Cost. B) Scarcity. C) Specialization. D) Voluntary Exchange. Show Answer Correct Answer: A) Opportunity Cost. 14. Which of the following is responsible for guaranteeing compensation for a specific loss or damage? A) Commercial bank. B) Building societies. C) Insurance companies. D) Central bank. Show Answer Correct Answer: C) Insurance companies. 15. Kevin purchasing concert tickets with his debit card is an example of the ..... function of money. A) Unit of account. B) Store of value. C) Medium of exchange. D) Specialization. Show Answer Correct Answer: C) Medium of exchange. 16. Government issued bonds are basically considered A) Savings. B) A loan. C) An IOU. D) Interest. Show Answer Correct Answer: C) An IOU. 17. Money is used because: A) It serves as a unit of account. B) Good 'store of value'. C) Makes lending and borrowing easy, compared to using 'things'. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Means of comparing goods and services A) Unit of Account. B) Medium of Exchange. C) Store of Value. D) Uniformity. Show Answer Correct Answer: A) Unit of Account. 19. What kind of interest includes "interest paid on interest" ? A) Complex interest. B) Compound interest. C) Simple interest. D) Profit. Show Answer Correct Answer: B) Compound interest. 20. Which is an example of discretionary spending? A) NASA Program. B) Medicare. C) Social Security. D) Food stamps. Show Answer Correct Answer: A) NASA Program. 21. Everything else held constant, a decline in interest rates will cause spending on housing to A) Fall. B) Remain unchanged. C) Either rise, fall, or remain the same. D) Rise. Show Answer Correct Answer: D) Rise. 22. Exchange of one good or service for another A) Barter. B) Money. C) Swindling. D) Theft. Show Answer Correct Answer: A) Barter. 23. Money thai is issued by the authority of the government is called- A) Full bodied money. B) Fait money. C) Fuduciary money. D) All the above. Show Answer Correct Answer: B) Fait money. 24. Which of the following can cost you money in large interest payments? A) Debit card. B) Credit card. C) A saving account. D) A checking account. Show Answer Correct Answer: B) Credit card. 25. Which of the following does the Federal Reserve use to regulate the nation's money supply? A) Fiscal policy. B) Monetary policy. C) Regulations. D) Proposing legislation. Show Answer Correct Answer: B) Monetary policy. 26. Banks are considered: A) Debt instruments. B) Equity instruments. C) Financial institutions. D) None of above. Show Answer Correct Answer: C) Financial institutions. 27. Supply of money refers to quantity of money A) As on any point of time. B) During fiscal year. C) During period of time. D) As on 31st march. Show Answer Correct Answer: A) As on any point of time. 28. Kanye has $ 12, 000 in cash and he deposits it in Kardashian National Bank. How much does M1 change? A) $ 12, 000 x the monetary multiplier. B) $ 12, 000. C) It doesn't change, cash and checks are both M1. D) $ 12, 000 less the required reserves. Show Answer Correct Answer: C) It doesn't change, cash and checks are both M1. 29. What is the purpose of credit cards? A) To let you buy goods whether you have the money or not. B) To only let you buy goods/services if you have the money. C) To give you discounts on goods/services. D) To allow you to borrow money from the bank. Show Answer Correct Answer: A) To let you buy goods whether you have the money or not. 30. In ancient times, Roman soldiers were paid in ..... A) Dollars. B) Sheep. C) Salt. D) Tobacco. Show Answer Correct Answer: C) Salt. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesMoney Quiz 1Money Quiz 2Money Quiz 3Money Quiz 4Money Quiz 5Money Quiz 6Money Quiz 7Money Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books