This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 23 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is a bank that, among other things, can lend money to other banks. A) Central Bank. B) Department of the Interior. C) Congress. D) National Bank. Show Answer Correct Answer: A) Central Bank. 2. Which function of money encourages people to save money? A) Medium of exchange. B) Store of value. C) Unit of account. D) Acceptability. Show Answer Correct Answer: B) Store of value. 3. Money that can be used for alternative purposes, such as corn, hemp, gunpowder and musket balls is known as A) Convenient money. B) Commodity money. C) Federal Reserve System (FED). D) Fiat money. Show Answer Correct Answer: B) Commodity money. 4. Something accepted by all parties as payment for goods and services A) Medium of exchange. B) Measure of value. C) Store of value. D) None of above. Show Answer Correct Answer: A) Medium of exchange. 5. Three functions of money ..... A) Fiat money, Medium of Exchange, and Store of Value. B) Medium of Value, Store of exchange, and Representative money. C) Medium of Exchange, Measure of value, Store of value. D) Commondity Money, Medium of Value, Store of Value. Show Answer Correct Answer: C) Medium of Exchange, Measure of value, Store of value. 6. Lowering interest rates to stimulate the economy is called: A) Monetary policy. B) Easy Money. C) Fiscal policy. D) Tight Money. Show Answer Correct Answer: A) Monetary policy. 7. ..... is a designation printed on paper currency that says it must be accepted as payment A) Fiat. B) Legal tender. C) Specie. D) Barter. Show Answer Correct Answer: B) Legal tender. 8. Which institution perform the activity of credit creation A) COMMERCIAL BANK. B) Central bank. C) Both. D) None of these. Show Answer Correct Answer: A) COMMERCIAL BANK. 9. A commercial bank sells $ 10k in securities. The reserve requirement is 10%. How much of the money can the bank lend? A) $ 10, 000. B) $ 1, 000. C) $ 9, 000. D) $ 0. Show Answer Correct Answer: A) $ 10, 000. 10. Money supply includes A) All deposits in banks. B) Only time deposits. C) Only demand deposits. D) Currency with bank. Show Answer Correct Answer: C) Only demand deposits. 11. Are credit cards considered money? A) Yes (It's your money). B) No. C) Yes (It's like a loan). D) None of above. Show Answer Correct Answer: C) Yes (It's like a loan). 12. All of the following are examples of predatory lenders EXCEPT: A) Check cashing stores. B) Pawn shops. C) Payday lenders. D) Credit unions. Show Answer Correct Answer: D) Credit unions. 13. Accumulating money to use later is which role of money? A) Unit of account/standard of value. B) Store of value. C) Medium of exchange. D) None of above. Show Answer Correct Answer: B) Store of value. 14. Which of these is an example of M1? A) Credit. B) Property. C) Savings deposits. D) Cash. Show Answer Correct Answer: D) Cash. 15. Money is functioning as a standard of value when you A) Use it to compare two houses that are different prices. B) Buy jeans at the mall. C) Buy a rare baseball card that you expect will increase in value. D) Trade a cup of sugar for two eggs. Show Answer Correct Answer: A) Use it to compare two houses that are different prices. 16. The money that banks must keep in their vaults and are not able to loan out is called A) Required Reserves. B) Loadable Funds. C) Excess Reserves. D) Dollars and Cents. Show Answer Correct Answer: A) Required Reserves. 17. Refers to the turn over rate, or how often money is used on average in a given year. A) Real Output. B) Monetary Policy. C) Velocity. D) Monetary Growth Rule. Show Answer Correct Answer: C) Velocity. 18. Anything that sets the standard of value of goods and services acceptable to all parties involved in a transaction is called? A) The medium of exchange. B) The medium of economy. C) Money. D) The medium of change. Show Answer Correct Answer: A) The medium of exchange. 19. This function of money is money as a "yardstick, " a way to measure the relative worth of a variety of products. A) Medium of exhange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: B) Unit of account. 20. What led to the creation of the Federal Reserve System? A) The stock market crash in 1929. B) The establishment of the Department of Treasury. C) A series of bank panics and failures in the early 1900s. D) The great recession of 2008. Show Answer Correct Answer: C) A series of bank panics and failures in the early 1900s. 21. Which is not a use of money? A) A store of value. B) To start a fire. C) Medium of exchange. D) Unit of account. Show Answer Correct Answer: B) To start a fire. 22. The Feds attempts to sway the level of inflation and real GDP in our economy A) Fiscal Policy. B) Diversification. C) Monetary Policy. D) Share. Show Answer Correct Answer: C) Monetary Policy. 23. A system in which the basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold A) Corporation. B) Fiat money. C) Stock. D) Gold standard. Show Answer Correct Answer: D) Gold standard. 24. What is the store of value? A) The feature of money that allows time to pass between earning choke and spending income. B) How much a store cost. C) The price of a business to be turnt into a store. D) The earnings of a store. Show Answer Correct Answer: A) The feature of money that allows time to pass between earning choke and spending income. 25. What would happen of a commercial bank decided to hold more than required reserves? A) Decrease the amount of potential loans made by the bank. B) Increase the interest rate offered by the bank. C) Decrease in checking accounts. D) Decrease the reserve ratio of the banking system. Show Answer Correct Answer: A) Decrease the amount of potential loans made by the bank. 26. Investing in several types of investments to reduce the risk of financial loss A) Return. B) Diversification. C) Speculation. D) Futures. Show Answer Correct Answer: B) Diversification. 27. In which market can you buy and sell shares of ownership in a company? A) Stock Market. B) Currency Market. C) Bond Market. D) Commodity Market. Show Answer Correct Answer: A) Stock Market. 28. Mortimer transfers $ 100 from his savings account to his checking account. The effect on the money supply will be A) M1 increases, M2 decreases, M3 is unchanged. B) M1, M2, M3 all increase. C) M1 will increase, M2 and M3 are unchanged. D) M1 will increase, M2 will increase, M3 falls. Show Answer Correct Answer: C) M1 will increase, M2 and M3 are unchanged. 29. Pick the one thing money does not have to do A) Money should be in different colors. B) Money should come in many different values. C) Money has to last. D) Money should be light enough to carry. Show Answer Correct Answer: A) Money should be in different colors. 30. Government-produced money backed by a physical commodity such as precious metals A) Representative. B) Commodity. C) Durability. D) Fiat. Show Answer Correct Answer: A) Representative. ← 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