This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The direct exchange of one set of goods or services for another A) Medium of Exchange. B) Currency Exchange. C) Barter System. D) Store of Value. Show Answer Correct Answer: C) Barter System. 2. What is important to know about this chapter? A) Spend all your money. B) Save some money. C) Money grows on trees. D) Burn some money. Show Answer Correct Answer: B) Save some money. 3. Lucie wants to save money. What can she do without? A) Lunch and supper. B) Clothes and shoes that fit. C) Candy and pop. D) A place to live and keep warm. Show Answer Correct Answer: C) Candy and pop. 4. The Rule of 72 is used to find how long an it will take for A) Investments to double. B) Debt to double. C) Interest to increase. D) None of above. Show Answer Correct Answer: A) Investments to double. 5. In which market can you buy and sell money for other kinds of money (e.g., U.S. dollars for euros)? A) Bond Market. B) Currency Market. C) Commodity Market. D) Stock Market. Show Answer Correct Answer: B) Currency Market. 6. The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a ..... A) Ratio. B) Decimal. C) Fraction. D) Dollar amount. Show Answer Correct Answer: B) Decimal. 7. A place to keep money safe A) Hospital. B) School. C) Bank. D) Grocery store. Show Answer Correct Answer: C) Bank. 8. The Fed keeps a certain amount of money out of circulation. This is referred to as the ..... A) Reserve requirement. B) Stockpile. C) Emergency Fund. D) Hoard. Show Answer Correct Answer: A) Reserve requirement. 9. Sarah goes to Chick fil a and buys lunch. In this transaction Sarah used her money in what way? A) Store of Value. B) Standard of Value. C) Fiat Money. D) Medium of Exchange. Show Answer Correct Answer: D) Medium of Exchange. 10. Money must be easy to carry, which means it means which characteristic? A) Store of value. B) Portability. C) Divisibility. D) Durability. Show Answer Correct Answer: B) Portability. 11. If the nominal interest raises from 4% to 7% then the A) Real interest rate must rise. B) Real interest rate fell by 4%. C) Expected inflation rose by 3%. D) Expected inflation fell by 3%. Show Answer Correct Answer: C) Expected inflation rose by 3%. 12. The amount of currency in circulation in an economy. A) Medium of Exchange. B) Money Market. C) Money Supply. D) Liquidity. Show Answer Correct Answer: C) Money Supply. 13. Depositing a set amount into a bank for a set amount of time (without touching it) A) Futures. B) Options. C) Certificate of Deposit. D) Return. Show Answer Correct Answer: C) Certificate of Deposit. 14. Currency notes and coins are called as: A) Flat Money. B) Legal tender. C) Fiat money. D) Both legal tender and fiat money. Show Answer Correct Answer: D) Both legal tender and fiat money. 15. The bank is a ..... place to keep money. A) Dangerous. B) Bad. C) Trashy. D) Safe. Show Answer Correct Answer: D) Safe. 16. If we put RM25 in our piggy bank and two weeks later, we still have RM25. What function has money fulfilled? A) Medium of exchange. B) Durability. C) Unit of account. D) Store of value. Show Answer Correct Answer: D) Store of value. 17. Well-functioning financial markets promote A) Deflation. B) Inflation. C) Economic growth. D) Unemployment. Show Answer Correct Answer: C) Economic growth. 18. Which characteristic of money means it doesn't fall apart easily when handled? A) Dirigible. B) Fallible. C) Durable. D) Incurable. Show Answer Correct Answer: C) Durable. 19. A share of stock represents A) Debt that the government or a corporation must repay to an investor. B) A portion of ownership in a corporation. C) A system that allows the transfer of funds between savers and borrowers. D) A collection of financial assets. Show Answer Correct Answer: B) A portion of ownership in a corporation. 20. The central bank in the USA that regulates the monetary system A) The IRS. B) Social Security. C) FDIC. D) The FED. Show Answer Correct Answer: D) The FED. 21. During the Free Banking Era between 1837 and 1863, banking in the United States was dominated by which of the following? A) Small, independent banks with no charters. B) The Bank of the United States. C) State-chartered banks. D) Savings and loans banks. Show Answer Correct Answer: C) State-chartered banks. 22. What is NOT a characteristic of money? A) Accessible. B) Divisible. C) Portable. D) Acceptable. Show Answer Correct Answer: A) Accessible. 23. Why is a budget a smart idea? A) You will think about what you need and want and plan how to spend your money. B) You will buy whatever you want. C) You will buy things whenever you want. D) You will starve because you don't have food. Show Answer Correct Answer: A) You will think about what you need and want and plan how to spend your money. 24. Money is expected to have value and be used by all to make purchases. A) Uniformity. B) Durability. C) Divisibility. D) Acceptability. Show Answer Correct Answer: D) Acceptability. 25. Last year, you sold your game system to your friend Jimmy for $ 125 in cash. You've been saving that money in a shoebox under your bed.You are saving the money to buy a new computernext year.A) Measure of ValueB) Store of ValueC) Medium of Exchange A) A. B) B. C) C. D) None of above. Show Answer Correct Answer: B) B. 26. If the reserve ratio is 25% and Ray deposits $ 100 in the bank the result will be A) $ 400 in money destruction. B) $ 100 in money destruction. C) $ 100 in money creation. D) $ 400 in money creation. Show Answer Correct Answer: D) $ 400 in money creation. 27. The type of money that has value because it can be exchanged for something of value A) Commodity Money. B) Fiat Money. C) ECONOMICS IS THE BEST CLASS. D) Representative value. Show Answer Correct Answer: D) Representative value. 28. Bartering is difficult if the items being traded are physically difficult to transport A) Double coincidence of wants. B) Portability. C) Divisibility. D) None of above. Show Answer Correct Answer: B) Portability. 29. Value that is based on an opinion of a person, society, etc. is what type of value? A) Intrinsic value. B) Speculative value. C) Subjective value. D) Economic value. Show Answer Correct Answer: C) Subjective value. 30. Which bank is called lender of last resort? A) Commercial bank. B) Agricultural bank. C) Central bank. D) None of above. Show Answer Correct Answer: C) 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