This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sector model showing how businesses & households interact A) Circular Flow Diagram. B) Demand Curve. C) Supply Curve. D) Price Controls. Show Answer Correct Answer: A) Circular Flow Diagram. 2. Total deposits creaed by commercial banks is Rs 12, 000 crore and LRR is 25%. Calculate the amount of initial deposits. A) Rs 6000 crore. B) Rs 5000 crore. C) Rs 3000 crore. D) Rs 4000 crore. Show Answer Correct Answer: C) Rs 3000 crore. 3. The Federal Reserve System was established in A) 1863. B) 1913. C) 1881. D) 1799. Show Answer Correct Answer: B) 1913. 4. The most liquid of assets: A) Currency. B) M2. C) Fiat Money. D) M1. Show Answer Correct Answer: D) M1. 5. Knowing the value or price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: B) Unit of account. 6. ..... is a currency that must be accepted for payment by decree of government A) Specie. B) Legal tender. C) Barter. D) Fiat. Show Answer Correct Answer: B) Legal tender. 7. What is a mortgage used to purchase? A) College tuition. B) Real estate. C) Car. D) Business expenses. Show Answer Correct Answer: B) Real estate. 8. Everything else held constant, an increase in interest rates on student loans A) Increases the cost of a college education. B) Reduces the cost of a college education. C) Increases costs for students with no loans. D) Has no effect on educational costs. Show Answer Correct Answer: A) Increases the cost of a college education. 9. You bake a cake for a friend's party, and the friend pays you for it. This makes you a ..... A) Producer. B) Purchaser. C) Commodity. D) Consumer. Show Answer Correct Answer: A) Producer. 10. What are M1 and M2? A) Currency. B) Fiat money. C) Money supplies. D) Specie. Show Answer Correct Answer: C) Money supplies. 11. Objects that have value in themselves as well as their value as a means of exchange are called? A) Customs. B) Commodity money. C) Currency. D) Simple money. Show Answer Correct Answer: B) Commodity money. 12. Who is most likely to be hurt by inflation? A) A business owner. B) Someone who borrowed money. C) A retiree on a fixed income. D) The U.S. government. Show Answer Correct Answer: C) A retiree on a fixed income. 13. Money must be easy to carry. A) Portability. B) Divisibility. C) Durability. D) Store of Value. Show Answer Correct Answer: A) Portability. 14. DEFINE Store of value A) The purchasing power of money can be transported from one time period to another. B) Money is like a yardstick, people use it to compare things they buy and sell. C) Money is accepted by people when they buy goods and services. D) Mr Hoffman HOLLA DOLLA. Show Answer Correct Answer: A) The purchasing power of money can be transported from one time period to another. 15. When was the stock market crash? A) 1940s. B) 1910s. C) 1920s. D) 1930s. Show Answer Correct Answer: C) 1920s. 16. Who are people who wanted a strong central government??? A) Democratic-republican. B) Federalists. C) Whigs. D) Anti-federalists. Show Answer Correct Answer: B) Federalists. 17. A bank can only lend out it's A) Actual reserves. B) Total checkable deposits. C) Required reserves. D) Excess reserves. Show Answer Correct Answer: D) Excess reserves. 18. Describes the state of a market with respect to competition A) Market Structure. B) Medium of Exchange. C) Store of Value. D) Services. Show Answer Correct Answer: A) Market Structure. 19. Money has several defining characteristics. Which one is FALSE? A) Susceptible to counterfeiting. B) Divisible. C) Legal tender. D) A unit of account. Show Answer Correct Answer: A) Susceptible to counterfeiting. 20. For something to be money, the item used must be limited in supply for it to have value A) Uniform. B) Scarce. C) Divisible. D) Acceptable. Show Answer Correct Answer: B) Scarce. 21. Financial markets promote economic efficiency by A) Channeling funds from investors to savers. B) Channeling funds from savers to investors. C) Creating inflation. D) Reducing investment. Show Answer Correct Answer: B) Channeling funds from savers to investors. 22. Borrowing money to make risky investments while hoping to make a large return A) Day Trading. B) Diversification. C) Share. D) Speculation. Show Answer Correct Answer: D) Speculation. 23. Save money in a ..... A) Savings account. B) Box. C) Sock drawer. D) Bag. Show Answer Correct Answer: A) Savings account. 24. Which of the following is NOT a way the Fed acts as the government's bank? A) Holds the government's money. B) Deals with the banking regulations. C) Issues the nation's currency. D) Sells U.S. government bonds and Treasury bills. Show Answer Correct Answer: B) Deals with the banking regulations. 25. Low interest rates A) Decrease new car sales. B) Discourage home building. C) Increase consumer borrowing. D) Raise the cost of borrowing. Show Answer Correct Answer: C) Increase consumer borrowing. 26. An important job of the Federal Reserve is to A) Protect the nation. B) Manage and control the money supply. C) Make sure all goods are safe. D) All of the above. Show Answer Correct Answer: B) Manage and control the money supply. 27. When goods such as gold, silver, furs, jewels, salt, coffee, tea, or meat is used to repay debts or in exchange for other products A) Commodity Money. B) Federal Reserve Notes. C) Money. D) Fiat Money. Show Answer Correct Answer: A) Commodity Money. 28. Which of the following is the central bank in the UK? A) Barclays. B) The Bank of Scotland. C) The Bank of England. D) HSBC. Show Answer Correct Answer: C) The Bank of England. 29. This function of money allows you to use it purchase the goods and services you need and want. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: A) Medium of exchange. 30. Spend money on things you ..... A) Throw away. B) Hate. C) Want. D) Need. Show Answer Correct Answer: D) Need. ← 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