This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A bond will increase in value if A) The government increases it's debt. B) The company files bankruptcy. C) Interest rates decrease. D) Interest rates increase. Show Answer Correct Answer: C) Interest rates decrease. 2. This type of money is considered legal tender and gets its value from the people's faith in the government. A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: C) Fiat money. 3. Which of the following is NOT one of the characteristics of money? A) Stable. B) Durable. C) Scarce. D) Affordable. Show Answer Correct Answer: D) Affordable. 4. Collects, borrows, spends, and prints money A) Internal Revenue Service. B) Consumer Financial Protection Bureau. C) Treasury Department. D) Securities and Exchange Commission. Show Answer Correct Answer: C) Treasury Department. 5. Any action taken by the Federal Reserve that either speeds up or slows down the economy is referred to as ..... ? A) Fiat Currency. B) Monetary Policy. C) Currency Policy. D) Insider Trading. Show Answer Correct Answer: B) Monetary Policy. 6. This is one half of the dual mandate of the Federal Reserve and is the combination of Frictional and Structural unemployment which equals around 4-6% unemployment A) Employment rate. B) Unemployment rate. C) Full Employment. D) Price Stability. Show Answer Correct Answer: C) Full Employment. 7. Which of the following is not instrument if monetary policy A) Selective credit control. B) Open market operation. C) Government spending. D) Bank rate. Show Answer Correct Answer: C) Government spending. 8. Section of the economy made up of individuals or families A) Businesses. B) Households. C) Factor. D) Firms. Show Answer Correct Answer: B) Households. 9. The economy is in recession. The FED decides to change to increase the money supply through ..... A) Domestic policy. B) Monetary policy. C) Fiscal policy. D) Foreign policy. Show Answer Correct Answer: B) Monetary policy. 10. Buys and Sells government bonds: A) Open Market Operations. B) Interest Rate Paid on Reserves. C) Required Reserve Rate Changes. D) Discount Rate Changes. Show Answer Correct Answer: A) Open Market Operations. 11. The formula used for calculating money multiplier: A) 1/CRR. B) 1/SLR. C) 1/LRR. D) All of the above. Show Answer Correct Answer: C) 1/LRR. 12. ..... are the time and resources spent trying to exchange goods and services. A) Contracting costs. B) Bargaining costs. C) Transaction costs. D) Barter costs. Show Answer Correct Answer: C) Transaction costs. 13. Which of the following is not a characteristic of money? A) Divisibility. B) Portability. C) Responsibility. D) Acceptability. Show Answer Correct Answer: C) Responsibility. 14. The resources required to make a product (good or service) A) Consumption. B) Four factors of production. C) Economics. D) Scarcity. Show Answer Correct Answer: B) Four factors of production. 15. An economy in which the government is not involved in businesses and the factors of production are privately owned A) Factor Market. B) Command Economy. C) Market Economy. D) Resource Market. Show Answer Correct Answer: C) Market Economy. 16. What does the "I" in the interest formula stand for? A) Time. B) Rate. C) Principal. D) Interest. Show Answer Correct Answer: D) Interest. 17. High interest rates might ..... purchasing a house or car but at the same time high interest rates might ..... saving. A) Encourage; encourage. B) Discourage; discourage. C) Encourage; discourage. D) Discourage; encourage. Show Answer Correct Answer: D) Discourage; encourage. 18. A Good rule to improve your credit score A) Use credit when you don't need to. B) Pay your bills late. C) Pay your bills on time. D) Go over your credit limit. Show Answer Correct Answer: C) Pay your bills on time. 19. What is the place responsible for creating and printing U.S. paper money? A) U.S. Mint. B) Federal Reserve Bank. C) Bureau of Engraving and Printing. D) FDIC. Show Answer Correct Answer: C) Bureau of Engraving and Printing. 20. The American Dollar bill is an example of A) Public Currency. B) Commodity Currency. C) Representative Currency. D) Fiat Currency. Show Answer Correct Answer: D) Fiat Currency. 21. What is the largest source of income for banks? A) Fees charged to customers for accounts. B) Special accounts such as NOW accounts. C) The interest they receive from loans. D) Money deposited in savings accounts. Show Answer Correct Answer: C) The interest they receive from loans. 22. Paper money was invented in ..... A) Rome. B) China. C) Greece. D) Lydia. Show Answer Correct Answer: B) China. 23. The Chinese invented ..... A) electrumB) paper moneyC) silverD) language A) Paper money. B) Electrum. C) Language. D) Silver. Show Answer Correct Answer: A) Paper money. 24. If interest rates are falling, then you can expect people to A) Demand less money. B) Demand more money. C) Invest more money. D) Keep everything the same. Show Answer Correct Answer: B) Demand more money. 25. By far the most large type of financial institution, and offer a wide range of financial services A) Commercial Banks. B) Holla My Rolla. C) Mutual Savings. D) Credit Unions. Show Answer Correct Answer: A) Commercial Banks. 26. You can save for ..... A) The future. B) Clothing that fits. C) Food. D) Something you need. Show Answer Correct Answer: A) The future. 27. One of the disadvantages of operating a barter system is that trading is A) Taking place without currency. B) Carried out in very large markets. C) Limited by availability and demand of goods traded. D) Conducted without consumer protections. Show Answer Correct Answer: C) Limited by availability and demand of goods traded. 28. A unit of account allows us to place a ..... value on goods and ..... A) Monetary/services. B) Monetary/products. C) Certain/products. D) Estimated/products. Show Answer Correct Answer: A) Monetary/services. 29. ..... are a paper currency issued by the FED. this is the real name for our bills. A) Shilling. B) Disney bucks. C) Specie. D) Federal Reserve Notes. Show Answer Correct Answer: D) Federal Reserve Notes. 30. This has value because the holder can exchange it for something else of value. A) Fiat Money. B) Representative Money. C) Commodity Money. D) None of the above. Show Answer Correct Answer: B) Representative Money. ← 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