This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 20 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How long do coins that are in circulation last? A) 30 years. B) Forever. C) 10 years. D) 20 years. Show Answer Correct Answer: A) 30 years. 2. The fed manages the amount of ..... in the economy to try to keep inflation low and stable. A) Credit cards. B) Companies. C) People. D) Money. Show Answer Correct Answer: D) Money. 3. The fulfillment of the Federal Reserves dual mandate through the manipulation of the money supply and interest rates is called A) Monetary Policy. B) Money Market. C) Fiscal Policy. D) FOMC. Show Answer Correct Answer: A) Monetary Policy. 4. Which of the following is money in the form of gold or silver coins? A) Commodity money. B) Specie money. C) Bitcoin. D) Fiat money. Show Answer Correct Answer: B) Specie money. 5. Kim K. deposits $ 200 in her checking account. Later that day Kanye gets a loan for $ 3, 000 from the same bank. What happens to the money supply A) Increases by $ 200. B) Increases by $ 2800. C) Increases by $ 3000. D) Decreases by $ 3000. Show Answer Correct Answer: C) Increases by $ 3000. 6. Which of the following is not something that you fill out on a check? A) The date. B) Your birthdate. C) Your signature. D) Who the check is made payable to. Show Answer Correct Answer: B) Your birthdate. 7. Anything that's accepted in exchange for goods & services. A) Money. B) Liquidity. C) Deferred Payment. D) Currency. Show Answer Correct Answer: A) Money. 8. Money that has value because the Government declared that it is money. A) Commodity Money. B) Fiat Money. C) Currency. D) Coins. Show Answer Correct Answer: B) Fiat Money. 9. You ..... your account when you write checks for more money than you ahve in the bank. A) Debit card. B) Service fee. C) Overdraw. D) Deposit. Show Answer Correct Answer: C) Overdraw. 10. Financial institutions that accept deposits and make loans are called A) Exchanges. B) Over-the-counter markets. C) Finance companies. D) Banks. Show Answer Correct Answer: D) Banks. 11. Credit control means- A) Contraction of credit only. B) Extension of credit only. C) Extension and contraction of money supply. D) None of these. Show Answer Correct Answer: C) Extension and contraction of money supply. 12. The scarcity of goods and services is reflected in their ..... A) Marketing. B) Origin. C) Usefulness. D) Prices. Show Answer Correct Answer: D) Prices. 13. What type of card allows you to withdraw money you have in your bank account? A) Debit Card. B) Credit Card. C) ID Card. D) Bank Card. Show Answer Correct Answer: A) Debit Card. 14. Digital currency such as Bitcoin is considered a speculative ..... A) Coin. B) Service. C) Money. D) Asset. Show Answer Correct Answer: D) Asset. 15. Why would a person invest in junk bonds? A) Junk bonds have high bond ratings. B) Most junk bonds have low interest rates. C) He does not know anything about investment. D) Junk bonds can pay very high interest rates. Show Answer Correct Answer: D) Junk bonds can pay very high interest rates. 16. Resources (a.k.a. the factors of production are) A) Land and Labor. B) Land and Capital. C) Entrepreneurship. D) Land, Labor, Capital and Entrepreneurship. Show Answer Correct Answer: D) Land, Labor, Capital and Entrepreneurship. 17. Definition of m1 A) The top guy in charge of the corporation. B) Forms of money that serve a store of value. C) 1 successful business. D) A type of money. Show Answer Correct Answer: B) Forms of money that serve a store of value. 18. Which of the following has not been used as a medium of exchange? A) Animals. B) Metals. C) Flowers. D) Salt. Show Answer Correct Answer: C) Flowers. 19. The Federal Reserve was established in A) 1913. B) 1865. C) 1907. D) 1929. Show Answer Correct Answer: A) 1913. 20. The item must physically last and will not wear out too quickly to be useful as money A) Divisible. B) Scarce. C) Durable. D) Acceptable. Show Answer Correct Answer: C) Durable. 21. You can save money in a ..... at a bank. A) Sock drawer. B) Under a mattress. C) Savings account. D) Trash can. Show Answer Correct Answer: C) Savings account. 22. Money can withstand physical wear and tear A) Durability. B) Divisibility. C) Uniformity. D) Portability. Show Answer Correct Answer: A) Durability. 23. If Reserve Deposit Ratio is 12.5%, the value of Money Multiplier will be: A) 2. B) 10. C) 5. D) 8. Show Answer Correct Answer: D) 8. 24. What is the best way the Fed controls the money supply A) Interest rates. B) It doesn't. C) Prime rates. D) Open Market policy. Show Answer Correct Answer: D) Open Market policy. 25. To avoid carrying cash, Ned pays for his lunch using this card. Each time he uses this card his checking account decreases. A) Credit. B) Debit. C) Both. D) None of above. Show Answer Correct Answer: B) Debit. 26. What is the value of multiplier if LRR is 10% A) 50. B) 5. C) 10. D) 20. Show Answer Correct Answer: C) 10. 27. High-interest rates might cause a corporation to ..... building a new plant that would provide more jobs. A) Contemplate. B) Consider. C) Complete. D) Postpone. Show Answer Correct Answer: D) Postpone. 28. An agreement to purchase or sell stocks for a specified price until a date in the future is reached A) Options. B) Default. C) Mutual Fund. D) Diversification. Show Answer Correct Answer: A) Options. 29. Money allows the comparison of different values and this function is referred to as ..... A) Medium of exchange. B) Store of value. C) Measure of value. D) Standard of deferred payment. Show Answer Correct Answer: C) Measure of value. 30. What is a bank's primary source of income? A) Interest. B) China. C) Housing market. D) The Fed. Show Answer Correct Answer: A) Interest. ← 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