This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Regressive taxes ..... A) Are higher the more you make. B) Are lower the more you make. C) Are the same for everyone. D) None of above. Show Answer Correct Answer: B) Are lower the more you make. 2. Anything that serves as a medium of exchange, a unit of account, and a store of value A) Unit of Account. B) Goods. C) Money. D) Services. Show Answer Correct Answer: C) Money. 3. This type of money does not have any value unless a government says it does A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: C) Fiat money. 4. Money must be easily divided into small parts so that people can purchase goods and services at any price; this meets which characteristic? A) Divisibility. B) Acceptability. C) Portability. D) Uniformity. Show Answer Correct Answer: A) Divisibility. 5. Why is a savings account a smart idea? A) Your money is safe, it can grow and you can save for something in the future. B) They burn it, trash it, hide it. C) They give it their friends, their family and strangers. D) They spend your money on pop, chips, and candy. Show Answer Correct Answer: A) Your money is safe, it can grow and you can save for something in the future. 6. Buying and selling government bonds (securities) by the Federal Reserve is called A) Reserve requirement. B) Monetizing the debt. C) Fiscal policy. D) Open market operations. Show Answer Correct Answer: D) Open market operations. 7. A tool used to buy something now and pay for it later A) Credit. B) Checks. C) Bankruptcy. D) Debit Card. Show Answer Correct Answer: A) Credit. 8. How do banks make profits? A) By charging people interest to borrow money. B) By charging people interest to keep their money there. C) By charging a fee every time a customer writes a check or uses a debit card. D) None of the above-banks are nonprofit institutions. Show Answer Correct Answer: A) By charging people interest to borrow money. 9. The purpose of debit cards is? A) To allow you to buy goods with only the money in your account. B) To allow you to buy goods with the banks money. C) To let you buy things online. D) To buy goods and services. Show Answer Correct Answer: A) To allow you to buy goods with only the money in your account. 10. How many roles of money are there? A) 2. B) 1. C) 4. D) 3. Show Answer Correct Answer: D) 3. 11. Where goods & services are sold in the circular flow model A) Households. B) Businesses. C) Product Market. D) Factor Market. Show Answer Correct Answer: C) Product Market. 12. An institution for receiving, keeping and lending money A) Bank. B) Stock. C) Company. D) Bond. Show Answer Correct Answer: A) Bank. 13. The Congress of the United States printed Greenbacks to help fund the A) World War I. B) Spanish-American War. C) Korean War. D) Civil War. Show Answer Correct Answer: D) Civil War. 14. A key factor in producing high economic growth is A) High-interest rates. B) Well-functioning financial markets. C) Eliminating foreign trade. D) Stock market volatility. Show Answer Correct Answer: B) Well-functioning financial markets. 15. What is a potential downside to investing in stocks, bonds, and other types of securities? A) You must participate in investor meetings. B) You will pay very high taxes. C) You may lose money. D) You have to receive dividends. Show Answer Correct Answer: C) You may lose money. 16. To find the money creating potential of the ENTIRE banking system, we multiply? A) Banking multiplier times excess reserves. B) Banking multiplier times MPS. C) Banking multiplier times required reserves. D) Banking multiplier times actual reserves. Show Answer Correct Answer: A) Banking multiplier times excess reserves. 17. How many members are on the Board of Governors? A) 7 Governors + 12 Reserve Bank Presidents+ NY Reserve Pres. B) 4 Governors + 4 Reserve Presidents + 1 Economist. C) 7 Governors. D) 12 Presidents of the Reserve Banks. Show Answer Correct Answer: C) 7 Governors. 18. Which among the following is considered to be the most liquid asset? A) Gold. B) Money. C) Treasury Bonds. D) Land. Show Answer Correct Answer: B) Money. 19. Which one of the following is responsible for issuing bank notes? A) Insurance companies. B) Central bank. C) Commercial bank. D) Building societies. Show Answer Correct Answer: B) Central bank. 20. To trade goods or services without the use of money is ..... A) Debt. B) Bartering. C) Trading. D) Economy. Show Answer Correct Answer: B) Bartering. 21. Which of these is NOT a reason to save money? A) Major purchases. B) Unexpected emergency. C) So you can loan it to your friends. D) Retirement. Show Answer Correct Answer: C) So you can loan it to your friends. 22. The Endowment Effect is our tendency to assign more value to the things we already own compared to A) The things we have purchased on credit. B) The things we could own. C) The things that we have sold. D) The things we have purchased in the past. Show Answer Correct Answer: B) The things we could own. 23. This function of money allows people to transfer purchasing power from the present to the future. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: C) Store of value. 24. ..... markets transfer funds from people who have an excess of available funds to people who have a shortage. A) Commodity. B) Financial. C) Derivative exchange. D) Fund-available. Show Answer Correct Answer: B) Financial. 25. The rate at which central bank lends to commercial banks for long term requirements is called? A) SLR. B) CRR. C) Bank rate. D) None of above. Show Answer Correct Answer: C) Bank rate. 26. In order to fulfill this function, money must be relatively stable in value and not too eroded by inflation. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: C) Store of value. 27. Money serves as ..... A) Pillar of economy. B) Store of value. C) Source of income. D) Physical property. Show Answer Correct Answer: B) Store of value. 28. This money is valuable because it is made of something valuable and it's all identical A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: A) Commodity money. 29. Function of money in which any item is widely accepted in the exchange of other goods or services A) Store of Value. B) Medium of Exchange. C) Market Structure. D) Minimum Wage. Show Answer Correct Answer: B) Medium of Exchange. 30. A commercial bank chartered by the National Banking System A) Reserve requirement. B) National bank. C) Corporation. D) Central bank. Show Answer Correct Answer: B) National bank. ← 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