This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Privately owned, publicly controlled, central bank of the United States A) Wachovia. B) National bank. C) Federal Reserve System (Fed). D) Central bank. Show Answer Correct Answer: C) Federal Reserve System (Fed). 2. What is used to measure inflation? A) A ruler. B) CPI Consumer Price Index. C) A scale. D) None of above. Show Answer Correct Answer: B) CPI Consumer Price Index. 3. Money whose value is based on the type of material from which it is made is called A) FIAT. B) Representative money. C) Near money. D) Commodity money. Show Answer Correct Answer: D) Commodity money. 4. The making, buying and selling of goods and services A) Inflation. B) Economics. C) Barter. D) Market. Show Answer Correct Answer: B) Economics. 5. Poorly performing financial markets can be the cause of A) Wealth. B) Poverty. C) Financial expansion. D) Financial stability. Show Answer Correct Answer: B) Poverty. 6. The risk of ending up with the equivalent of a never-ending loan is one of the disadvantages of using A) Credit cards. B) Savings accounts. C) Checking accounts. D) Debit cards. Show Answer Correct Answer: A) Credit cards. 7. When the money supply increases, nominal interest rate will A) Remain the same. B) Increase. C) Decrease. D) Shift left. Show Answer Correct Answer: C) Decrease. 8. Money by government decree; has no alternative value or use as a commodity A) Gold standard. B) Stock. C) Fiat money. D) Reserve requirement. Show Answer Correct Answer: C) Fiat money. 9. The coins and paper bills used as money in a society A) Checks. B) Currency. C) Bond. D) Prices. Show Answer Correct Answer: B) Currency. 10. Specific coins and paper bills used as money is known as: A) Specie. B) Fiat Money. C) Commodity Money. D) Currency. Show Answer Correct Answer: D) Currency. 11. Member-owned financial cooperations, created to serve the financial needs of their members. Because they dont nee to earn profits beyond expenses, they often have better terms and lower rates. A) Savings and Loans. B) Credit Unions. C) Commercial Banks. D) Mutual Savings Bank. Show Answer Correct Answer: B) Credit Unions. 12. An essential function for banks is creating money by A) Storing all of the deposits. B) Loaning a portion of deposits. C) Loaning all of the deposits. D) None of the above. Show Answer Correct Answer: B) Loaning a portion of deposits. 13. Only one woman has ever appeared on a dollar bill. Who was it? A) Queen Elizabeth. B) Betsy Ross. C) Martha Washington. D) Sacagawea. Show Answer Correct Answer: C) Martha Washington. 14. When investors use algorithms to make stock purchases and hold them for a short amount of time A) Day Trading. B) Diversification. C) Federal Reserve Bank. D) Monetary Policy. Show Answer Correct Answer: A) Day Trading. 15. You pick up a $ 5 bill. What are you holding? A) Fiat money. B) Representative money. C) Federal Reserve Note. D) All of these are correct. Show Answer Correct Answer: A) Fiat money. 16. A specific loan for real estate A) Bond. B) Mortgage. C) Interest. D) Principal. Show Answer Correct Answer: B) Mortgage. 17. Which of the following was never used as currency? A) Beads. B) Gold. C) Bananas. D) Salt. Show Answer Correct Answer: C) Bananas. 18. What characteristic of money helps it keep its value and deters inflation? A) Uniformity. B) Limited supply. C) Portability. D) Acceptability. Show Answer Correct Answer: B) Limited supply. 19. When there is not enough of a certain item, it is called A) Plenty. B) Supply. C) Demand. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 20. Money helps us buy things quickly. What role is this? A) Store of value. B) Medium of exchange. C) Unit of account/standard of value. D) None of above. Show Answer Correct Answer: B) Medium of exchange. 21. Which of the four characteristics of money can be defined as "able to be broke down" ? A) Uniformity. B) Durability. C) Divisibility. D) Portability. Show Answer Correct Answer: C) Divisibility. 22. Who appoints the chairman of the Federal Reserve? A) President. B) Congress. C) Supreme Court. D) The American poeple. Show Answer Correct Answer: A) President. 23. Government, businesses, and individuals in the United States all accept US currency because: A) Currency is valued higher than coins. B) They have confidence in the government. C) Currency is the only type of money. D) All currency is backed up by gold. Show Answer Correct Answer: B) They have confidence in the government. 24. When interest rates rise, the demand for money (think of loans) A) Increases. B) Decreases. C) Is unaffected. D) None of above. Show Answer Correct Answer: B) Decreases. 25. What is a family most likely to do if they want to purchase a home? A) Purchase a certificate of deposit. B) Use a credit card. C) Open a checking account. D) Get a mortgage. Show Answer Correct Answer: D) Get a mortgage. 26. The idea that an economy regulates itself is known as A) Balanced Economics. B) Keynesian Economics. C) Stable Economics. D) Classical Economics. Show Answer Correct Answer: D) Classical Economics. 27. Which of the characteristics of money can be defined as "easily moved" ? A) Divisibility. B) Uniformity. C) Durability. D) Portability. Show Answer Correct Answer: D) Portability. 28. This is a system where a reserve, or part, of a deposit needs to be kept on hand. A) Aggregate Measures. B) Multiplier effect. C) Fractional reserve system. D) Primary reserve. Show Answer Correct Answer: C) Fractional reserve system. 29. The Fed's key function is to A) Make sure the nation's banking system is sound and safe. B) Maintain an effective payment system for banks and government. C) Promote a healthy economy by using monetary policy. D) All of the above. Show Answer Correct Answer: D) All of the above. 30. A cash obligation A) Liability. B) Asset. C) Owner's equity. D) Liquid asset. Show Answer Correct Answer: A) Liability. ← 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