This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. You have invested $ 500 at 9 percent interest. According to the Rule of 72, how soon will the money double in value? (72/r = time) A) 12 years. B) 4 years. C) 6 years. D) 8 years. Show Answer Correct Answer: D) 8 years. 2. "The Fed" refers to the ..... A) Federa Reserve System. B) Federal Income Tax. C) Federal Bureau of Investigation. D) Federal Government. Show Answer Correct Answer: A) Federa Reserve System. 3. Why is using coins as money easier than using gold bars? A) Coins are more portable. B) Coins are more uniform. C) Coins are more limited in supply. D) Coins are more durable. Show Answer Correct Answer: A) Coins are more portable. 4. One half of the dual mandate of the Federal Reserve where the FED works to limit inflation. A) Price influxation. B) Full employment. C) Price Stability. D) Deflation. Show Answer Correct Answer: C) Price Stability. 5. Two units of the same type of money must be the same in terms of what they will buy, which is the principle of A) Divisibility. B) Flexibility. C) Uniformity. D) Portability. Show Answer Correct Answer: C) Uniformity. 6. What is the other name of money multiplier A) Deposit multiplier. B) Credit multiplier. C) Cash reserve ratio. D) None of these. Show Answer Correct Answer: A) Deposit multiplier. 7. A system that requires banks to hold reserves equal to some fraction (%) of their checkable deposits. A) Bank Failures. B) Money Multiplier. C) Fractional Reserve Banking System. D) Expansionary Effect on Economy of a Bank Deposit. Show Answer Correct Answer: C) Fractional Reserve Banking System. 8. How many district banks are there? A) Each state has one. B) 7. C) 2. D) 12. Show Answer Correct Answer: D) 12. 9. What card uses your money during a transaction and takes right from your account? A) Currency. B) Debit Cards. C) Credit Cards. D) Holla Bucks. Show Answer Correct Answer: B) Debit Cards. 10. What is medium of exchange? A) Exchanging businesses. B) Money serves as measuring stick Used to express the worth of something. C) Moving into a medium developed business. D) Changing one bill to another. Show Answer Correct Answer: B) Money serves as measuring stick Used to express the worth of something. 11. How easy it is to convert an asset into cash A) Savings account. B) Liquidity. C) Fiat money. D) Reconcile. Show Answer Correct Answer: B) Liquidity. 12. Money with intrinsic value that can have some other use is called A) Barter money. B) Commodity money. C) Token money. D) Fiat money. Show Answer Correct Answer: B) Commodity money. 13. The amount banks hold beyond required reserve; amount that banks can lend. A) Expansionary Effect. B) Excess Reserves. C) Multiplier. D) Reserve Requirement. Show Answer Correct Answer: B) Excess Reserves. 14. A finished product used by an individual for personal use. A) Stock. B) Substitute Good. C) Complementary Good. D) Consumer Good. Show Answer Correct Answer: D) Consumer Good. 15. Money must be able to withstand the wear and tear of many people using it. A) Acceptability. B) Divisibility. C) Durability. D) Limited Supply. Show Answer Correct Answer: C) Durability. 16. The exchange of goods without the exchange of money A) Trade. B) Checking. C) Barter System. D) Credit cards. Show Answer Correct Answer: C) Barter System. 17. Money must withstand physical wear and tear from being used over and again. A) Uniformity. B) Durability. C) Portability. D) Divisibility. Show Answer Correct Answer: B) Durability. 18. Money must be widely recognized by both parties before an exchange for goods or services happens. A) Limited Supply. B) Acceptability. C) Divisibility. D) Store of Value. Show Answer Correct Answer: B) Acceptability. 19. To finance the building of a new police station, a local government is most likely to issue a A) Junk bond. B) Municipal bond. C) Money market bond. D) Treasury bond. Show Answer Correct Answer: B) Municipal bond. 20. How do banks make money? A) By providing lollipops. B) Higher interest on savings accounts. C) Collecting taxes. D) Giving loans with interest. Show Answer Correct Answer: D) Giving loans with interest. 21. All of the following are examples of M2 EXCEPT A) Savings deposits. B) Demand deposits. C) Small denomination time deposits. D) The total of all M1. Show Answer Correct Answer: B) Demand deposits. 22. What does the FDIC do? A) Pays you interest in your checking account. B) Protects your money should the bank be robbed. C) Loan you money based on your credit score. D) Takes your money and doesn't give it back. Show Answer Correct Answer: B) Protects your money should the bank be robbed. 23. A stock split is most likely to occur when A) A company is losing money. B) Stockholders demand higher dividends. C) The price of a stock becomes too high. D) The stock market as a whole is doing poorly. Show Answer Correct Answer: C) The price of a stock becomes too high. 24. The money supply of the United States is made up of which of the following? A) M1. B) M1 and parts of M2. C) All the money available in the economy. D) All the money available in the economy plus money that the country could borrow. Show Answer Correct Answer: C) All the money available in the economy. 25. The monetary value assigned to a product or service. A) Price. B) Corporation. C) Supply. D) Scarcity. Show Answer Correct Answer: A) Price. 26. What type of investment is similar to a basic savings account but has a specific, fixed term and usually offers a higher fixed interest rate? A) Certificate of deposit. B) Money market deposit account. C) Mutual fund. D) Stock. Show Answer Correct Answer: A) Certificate of deposit. 27. The item used must have a standard appearance so that it is recognised and seen to represent an agreed fixed amount A) Scarce. B) Uniform. C) Acceptable. D) Durable. Show Answer Correct Answer: B) Uniform. 28. Individuals who come up with a new idea for a good or service, then they make it a reality A) Entrepreneur. B) Human resources. C) Consumer. D) Resource. Show Answer Correct Answer: A) Entrepreneur. 29. Anything that is used as a medium of exchange, a measure of value, and a store of value? A) Money. B) Barter. C) Currency. D) Fiat Money. Show Answer Correct Answer: A) Money. 30. A machine that replaces a bank teller for simple transactions or transactions after hours is called? A) RTFM. B) Bank Box. C) Teller Window. D) ATM. Show Answer Correct Answer: D) ATM. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesMoney Quiz 1Money Quiz 2Money Quiz 3Money Quiz 4Money Quiz 5Money Quiz 6Money Quiz 8Money Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books