This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 21 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the source of fiat money's value? A) It represents the value of another item. B) Presidential pardon. C) Government decree. D) It is equal to the value of the stock market. Show Answer Correct Answer: C) Government decree. 2. What are the three functions of money? A) Medium of exchange, store of value, unit of account. B) Medium of exchange, store of value, provides barter. C) Store of value, medium of exchange, creates instability. D) None of above. Show Answer Correct Answer: A) Medium of exchange, store of value, unit of account. 3. How long do $ 100 bills last? A) 9 years. B) 15 years. C) 12 years. D) 4 years. Show Answer Correct Answer: A) 9 years. 4. The economy is in recession. The government decides to change to increase the money supply through ..... A) Foreign policy. B) Domestic policy. C) Monetary policy. D) Fiscal policy. Show Answer Correct Answer: D) Fiscal policy. 5. ..... is the privately owned, publicly controlled central bank of the U.S. A) Bank of America. B) J.P. Morgan Chase. C) The Federal Reserve System (FED). D) Wells Fargo. Show Answer Correct Answer: C) The Federal Reserve System (FED). 6. An asset that can be easily converted to cash is ..... A) A withdrawal. B) Overdraft protection. C) An ATM. D) Liquid. Show Answer Correct Answer: D) Liquid. 7. Demand deposits include ..... A) Saving account deposits and fixed deposits. B) Saving account deposits and current account deposits. C) Current account deposits and fixed deposits. D) All types of deposits. Show Answer Correct Answer: B) Saving account deposits and current account deposits. 8. Money must be scarce. A) Fiat Money. B) Limited Supply. C) Store of Value. D) Medium of Exchange. Show Answer Correct Answer: B) Limited Supply. 9. In the past (prior to the 1970's) the U.S. government couldn't issue more money than it had in gold reserves. This was called the: A) Gold supply. B) Gold standard. C) Gold savings. D) Gold backing. Show Answer Correct Answer: B) Gold standard. 10. This is the key monetary policy making body of the Federal Reserve. It is comprised of several district bank presidents and the Chairman of the Federal Reserve. A) Federal Open Market Committee. B) Presidential Banking Committee. C) Board of Governors. D) Board of Bankers. Show Answer Correct Answer: A) Federal Open Market Committee. 11. The Fed influences the money supply and interest rates in the economy to keep this low and stable- A) Inflation. B) Supply. C) Interest. D) Price. Show Answer Correct Answer: A) Inflation. 12. Federal Reserve pays banks for their reserves. A) Interest Rate Paid on Reserves. B) Discount Rate Changes. C) Open Market Operations. D) Required Reserve Rate Changes. Show Answer Correct Answer: A) Interest Rate Paid on Reserves. 13. Money acts as a go-between to make it easier tobuy things. Sellers agree to accept it in exchangefor a good or service. A) Measure of ValueB) Store of ValueC) Medium of Exchange A) A. B) B. C) C. D) None of above. Show Answer Correct Answer: C) C. 14. When there is not enough of something that people need, such as food or water, what word describes what the government might do in order for as many people as possible to get what they need? A) Gouging. B) Allocation. C) Demand. D) None of above. Show Answer Correct Answer: B) Allocation. 15. Money, property, and other goods that have value. A) Physical capital. B) Credit. C) Cash. D) Asset. Show Answer Correct Answer: D) Asset. 16. The four characteristics of money are A) Portable, divisible, durable, available. B) Sensible, portable, durable, available. C) Durable, curable, fallible, liable. D) None of above. Show Answer Correct Answer: A) Portable, divisible, durable, available. 17. When we continue using a product or service that makes us unhappy because the cost has already been incurred and cannot be recovered. This is an example of ..... A) Economic Stupidity. B) Sunk Cost Fallacy. C) Endowment Effect. D) None of the above. Show Answer Correct Answer: B) Sunk Cost Fallacy. 18. Anything that is used as a medium of exchange, a unit of account, and a store of value? A) Barter. B) Money. C) Currency. D) Fiat Money. Show Answer Correct Answer: B) Money. 19. Where is money made? A) New York. B) United state's. C) The us treasury. D) Money mint. Show Answer Correct Answer: D) Money mint. 20. Money saved and used in the future 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: B) Store of value. 21. To an economist, ..... is anything that is generally accepted in payment for goods and services or in the repayment of debt. A) Credit. B) Income. C) Wealth. D) Money. Show Answer Correct Answer: D) Money. 22. Which of the following are banking services A) Issuing credit cards. B) Issuing loans. C) Storing money. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. The oldest form of money in the WORLD is A) Seashells. B) Cattle. C) Seeds. D) Stones. Show Answer Correct Answer: B) Cattle. 24. Something that serves as a way to compare values? A) Unit of account. B) Medium of exchange. C) Store of value. D) Currency. Show Answer Correct Answer: A) Unit of account. 25. What is the Cash Reserve Ratio (CRR)? A) The fraction of the deposits that commercial banks lend to the customers. B) The fraction of the deposits that RBI must keep with commercial banks. C) The fraction of the deposits that commercial banks must keep with RBI. D) None of above. Show Answer Correct Answer: C) The fraction of the deposits that commercial banks must keep with RBI. 26. Which of the following is a sign of a weak economy? A) Increasing GDP. B) Prices that remain the same. C) Increase in spending power. D) A high unemployment rate. Show Answer Correct Answer: D) A high unemployment rate. 27. Purchases made with your debit card are usually: A) Deducted immediately from your checking account. B) Added to your credit card balance. C) Deducted from your credit card balance. D) Put on your credit card bill as a cash advance. Show Answer Correct Answer: A) Deducted immediately from your checking account. 28. When deciding which purchase is the best deal, which role of money is being used? A) Unit of account/standard of value. B) Medium of exchange. C) Store of value. D) None of above. Show Answer Correct Answer: A) Unit of account/standard of value. 29. Money multiplier is A) 1/ CRR. B) 1/ SLR. C) 1/ LRR. D) NONE OF THESE. Show Answer Correct Answer: C) 1/ LRR. 30. Which of the following uses an allocation system based on achievement? A) Welfare programs. B) College admissions. C) Medical triage. D) Tickets to a sporting event. Show Answer Correct Answer: B) College admissions. ← 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