This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A U.S. government agency that provides insurance on customer's deposits in a bank account. A) Credit Union. B) Fractional Reserve Banking. C) Federal Reserve System. D) Federal Deposit Insurance Corporation. Show Answer Correct Answer: D) Federal Deposit Insurance Corporation. 2. A ..... is a plan for how how to use money. A) Need. B) Bank. C) Budget. D) Savings account. Show Answer Correct Answer: C) Budget. 3. What does Inflation do to the value of money? A) Makes it go up. B) Makes it go down. C) Makes it stay the same. D) None of above. Show Answer Correct Answer: B) Makes it go down. 4. Your money is ..... at a bank. A) Safe. B) Burned. C) Thrown away. D) In danger. Show Answer Correct Answer: A) Safe. 5. What do we save at the bank? A) Money. B) Cans. C) Book. D) Clothes. Show Answer Correct Answer: A) Money. 6. 'In Malaysia, Ringgit is used to measure the value of goods and services'. The statement above refers to ..... A) Medium of exchange. B) Measure of value. C) Store of value. D) Standard of deferred payment. Show Answer Correct Answer: B) Measure of value. 7. The Federal Reserve is in charge of what? A) Distributing info about the economy. B) Conducting the nations monetary policy. C) Supervise and regulate banks. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. There are functions of money. Which one is FALSE? A) Exchange medium. B) Deferred payment norm. C) Limited use. D) Measure of account worth. Show Answer Correct Answer: C) Limited use. 9. Which of these can cost you money in large interest payments? A) A checking account. B) A savings account. C) A debit card. D) A credit card. Show Answer Correct Answer: D) A credit card. 10. What is the definition of role of money? A) Commonly appropriate as a product/service payment. B) Used only for goods and cannot be used unlimitedly. C) Solved barter's problem by single coincidence of needs. D) Anything acts as a large medium only. Show Answer Correct Answer: A) Commonly appropriate as a product/service payment. 11. Function of money in which any commodity can be saved for later use A) Medium of Exchange. B) Sole Proprietorship. C) Store of Value. D) Opportunity Cost. Show Answer Correct Answer: C) Store of Value. 12. What is the equation of exchange? A) Excess=Actual-Required. B) 1/RR. C) MV=PQ=GDP. D) 1/MPS. Show Answer Correct Answer: C) MV=PQ=GDP. 13. To understand the financial system, you need to picture two different groups called Lenders and ..... A) Spenders. B) Borrowers. C) Users. D) None of these answers. Show Answer Correct Answer: B) Borrowers. 14. Money used to for exchange of goods and service describes which basic function of money? A) Medium of exchange. B) Store of value. C) Unit of account. D) Standard of deferred payments. Show Answer Correct Answer: A) Medium of exchange. 15. Which of the following is a basic characteristic of money? A) Portability. B) Divisibility. C) Limited availability. D) All of these are correct. Show Answer Correct Answer: D) All of these are correct. 16. Money that you owe A) Debt. B) Collateral. C) Principal. D) Capital. Show Answer Correct Answer: A) Debt. 17. People can take their money with them easily. A) Portability. B) Durability. C) Uniformity. D) Divisibility. Show Answer Correct Answer: A) Portability. 18. Money that has a value as something other than money. A) Currency. B) Coins. C) Fiat Money. D) Commodity Money. Show Answer Correct Answer: D) Commodity Money. 19. When resources are limited and the need for goods & services are unlimited A) Specialization. B) Voluntary Exchange. C) Opportunity Cost. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 20. A bank that can lend to other banks in times of need, or a "bankers' bank" A) National bank. B) Corporation. C) Central bank. D) Federal Reserve System (Fed). Show Answer Correct Answer: C) Central bank. 21. RR = 10%, what is the banking multiplier? A) 9. B) 7. C) 10. D) 4. Show Answer Correct Answer: C) 10. 22. The exchange of goods and services A) Economics. B) Consumer. C) Market. D) Trade. Show Answer Correct Answer: D) Trade. 23. A general increase in prices A) Price. B) Inflation. C) Scarcity. D) Demand. Show Answer Correct Answer: B) Inflation. 24. Trade is made easier because of this function of money that eliminates the need to barter (trade goods for goods). A) Unit of Account. B) Store of Value. C) Divisibility. D) Medium of Exchange. Show Answer Correct Answer: D) Medium of Exchange. 25. Money which is accepted as a medium of exchange because of trust between the payer and the payee is called- A) Full bodied money. B) Fait money. C) Fiduciary money. D) None of these. Show Answer Correct Answer: C) Fiduciary money. 26. A person who invests in a company based on its mission and ethical practices illustrates which style of investing? A) Socially responsible investing. B) Fundamental analysis. C) Technical analysis. D) Zero-sum investing. Show Answer Correct Answer: A) Socially responsible investing. 27. Like commercial banks, they offer a wide range of financial services. Originally set up for smaller customers who did not feel welcomed by the big commercial banks A) Credit Unions. B) Mutual Savings Banks. C) Commercial Banks. D) Savings and Loans. Show Answer Correct Answer: B) Mutual Savings Banks. 28. The Fed ..... banks to ensure the soundness of the banking system. A) Closes. B) Opens. C) Runs. D) Regulates. Show Answer Correct Answer: D) Regulates. 29. The amount of money the bank has available to lend A) Actual reserves. B) Navy reserves. C) Excess reserves. D) Required reserves. Show Answer Correct Answer: C) Excess reserves. 30. Probably the governors' most important responsibility is A) Participating on the FOMC. B) Controlling the economy. C) Monitoring commercial banks. D) None of above. Show Answer Correct Answer: A) Participating on the FOMC. ← 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