This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. During times of hyperinflation A) The purchasing power of the currency increases rapidly. B) People often adopt something other than the official currency to use as money. C) People hoard the official currency. D) The money supply is decreasing. Show Answer Correct Answer: B) People often adopt something other than the official currency to use as money. 2. Our bank for banks A) Fiscal Policy. B) Federal Reserve Bank. C) Fractional Reserve Banking. D) Monetary Policy. Show Answer Correct Answer: B) Federal Reserve Bank. 3. All of the money available in the US economy A) Congress. B) Banks. C) Money Supply. D) Treasury. Show Answer Correct Answer: C) Money Supply. 4. Of money's three functions, the one that distinguishes money from other assets is its function as a A) Store of value. B) Unit of account. C) Standard of deferred payment. D) Medium of exchange. Show Answer Correct Answer: D) Medium of exchange. 5. In which year the Reserve Bank of the India was established? A) 1947. B) 1945. C) 1953. D) 1935. Show Answer Correct Answer: D) 1935. 6. Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A) Financial markets. B) Derivative exchange markets. C) Commodity markets. D) Fund-available markets. Show Answer Correct Answer: A) Financial markets. 7. The fee charged by a financial institution when you borrow money A) Interest. B) Deposit. C) Loan. D) Withdraw. Show Answer Correct Answer: A) Interest. 8. Banks keep a portion of deposits in-house and loan the rest A) Federal Reserve Bank. B) Certificate of Deposit. C) Speculation. D) Fractional Reserve Banking. Show Answer Correct Answer: D) Fractional Reserve Banking. 9. A certain % of checkable deposits that banks keep on reserve. A) Savings. B) Excess Reserves. C) Fractional Reserve. D) Reserve Requirement. Show Answer Correct Answer: D) Reserve Requirement. 10. When investors pool their money together to allow for more styles/types of investing. A) Stocks. B) Bond. C) Futures. D) Mutual Fund. Show Answer Correct Answer: D) Mutual Fund. 11. The primary role of the Federal Reserve Bank is to steer the economy by A) Controlling the budget. B) Controlling the money supply. C) Loaning out money. D) Setting spending levels. Show Answer Correct Answer: B) Controlling the money supply. 12. What are the 3 functions of money? A) Get rich influence people and flaunt. B) Medium of exchange standard of valuestore of value. C) It doesn't have a function. D) Deposit withdrawal interest. Show Answer Correct Answer: B) Medium of exchange standard of valuestore of value. 13. Specialize in accepting savings deposits, & making mortage & other loans. Originally formed as home building societies, later allowed to expand into commercial banking acitivities A) Commercial Banks. B) Credit Unions. C) Savings and Loans. D) Mutual Savings Bank. Show Answer Correct Answer: C) Savings and Loans. 14. The ancient Lydians were the first to use ..... A) Precious metal coins as money. B) The barter system. C) Paper money. D) Salt as a medium of exchange. Show Answer Correct Answer: A) Precious metal coins as money. 15. If you sell something and choose not to spend the money earned right away, the money is acting as a A) Unit of Account. B) Store of Value. C) Medium of Exchange. D) Demand Deposit. Show Answer Correct Answer: B) Store of Value. 16. The ability to use an asset as a medium of exchange describes its ..... A) Durability. B) Liquidity. C) Scarcity. D) Portability. Show Answer Correct Answer: B) Liquidity. 17. Maria borrowed $ 3, 000 at a simple interest rate of 4% per year. How much did she have to repay after 4 years? A) $ 7, 800. B) $ 4, 800. C) $ 3, 480. D) $ 480. Show Answer Correct Answer: C) $ 3, 480. 18. Examples of this would include salt, precious stones, gold, and livestock. A) Commodity Money. B) Futures. C) Specie. D) Fiat Money. Show Answer Correct Answer: A) Commodity Money. 19. Suppose that Captain Crunch bank has a customer deposit $ 5, 000 and the bank's excess reserves go up by $ 4, 000. The reserve ratio is A) $ 1000. B) 40%. C) 10%. D) 20%. Show Answer Correct Answer: D) 20%. 20. The interest rate the Banks charges charge their best customers. A) Prime rate. B) Open market operations. C) Discount rate. D) Monetarism. Show Answer Correct Answer: A) Prime rate. 21. What would decreasing reserve requirements allow a bank to do? A) Free up banks to make more loans. B) Require banks to save more money. C) Free up banks to foreclose on home loans. D) None of the above. Show Answer Correct Answer: A) Free up banks to make more loans. 22. A prolonged period of falling stock prices and a general feeling of investor pessimism: A) Bear market. B) Animal market. C) Wolf market. D) Bull market. Show Answer Correct Answer: A) Bear market. 23. Maximum credit that commercial bank can legally create depends on their A) Gold Reserve. B) SLR. C) CRR. D) Legal reserve ratio( LRR). Show Answer Correct Answer: D) Legal reserve ratio( LRR). 24. The chance of loss. A) Reward. B) Stock. C) Risk. D) Real Estate. Show Answer Correct Answer: C) Risk. 25. ..... is money that is deemed legal tender by the government, and it is not based on or convertible into a commodity. A) Commodity money. B) Money supply. C) Fiat money. D) Liquidity. Show Answer Correct Answer: C) Fiat money. 26. Scarcity is important as an economic characteristic of money because ..... A) We need to have plenty of money in circulation. B) Too much money in circulation makes it worth less. C) The more you have the better off you are. D) None of above. Show Answer Correct Answer: B) Too much money in circulation makes it worth less. 27. Buying and selling of government securities by the central bank from/to banks is called? A) Open market operations. B) Margin. C) Banking. D) None of above. Show Answer Correct Answer: A) Open market operations. 28. Stocks of large, well-established corporations with a solid record of profitability: A) Gradient stocks. B) Blue-chip stocks. C) Par stocks. D) Stock splits. Show Answer Correct Answer: B) Blue-chip stocks. 29. When one share is divided into half or more (because the price has increased and deterred investors) A) Principal. B) Interest. C) Return. D) Stock Split. Show Answer Correct Answer: D) Stock Split. 30. ..... is a bank that can lend money to other banks in times of crisis A) Central Bank. B) National Bank. C) Department of the Interior. D) Congress. Show Answer Correct Answer: A) Central 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