This quiz works best with JavaScript enabled. Home > Economics > Finance > General > Money – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The interest rate the bond issuer pays to the bondholder is called the A) Discount rate. B) Value rate. C) Maturity rate. D) Coupon rate. Show Answer Correct Answer: D) Coupon rate. 2. This is the total amount borrowed: A) Principal. B) Interest. C) Investment. D) Maturity. Show Answer Correct Answer: A) Principal. 3. A product that can be used to satisfy a want or need. A) Dividends. B) Scarcity. C) Goods. D) Liability. Show Answer Correct Answer: C) Goods. 4. What kinds of money are included in M1? A) Money market funds. B) Currency. C) Savings deposits. D) Small-time deposits. Show Answer Correct Answer: B) Currency. 5. Deposit creation by banks comes to an end when ..... A) Legal reserve ratio becomes zero. B) Total reserves equal initial deposits. C) Money multiplier becomes zero. D) Fresh deposits with bank become zero. Show Answer Correct Answer: B) Total reserves equal initial deposits. 6. Currency includes A) Paper money and coins. B) Paper money, coins, and checks. C) Paper money and checks. D) Paper money, coins, checks, and savings deposits. Show Answer Correct Answer: A) Paper money and coins. 7. If Adi wants to sell me a unit of cocoa for $ 22 and Jude for $ 20, this allows me to make a decision about whether to buy from Jude or Adi. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: B) Unit of account. 8. Which is a good synonym for the word "BARTER" in the term barter economy? A) Specie. B) Monetary. C) Fiat. D) Trade. Show Answer Correct Answer: D) Trade. 9. A share of common stock is a claim on a corporation's A) Debt. B) Liabilities. C) Expenses. D) Earnings and assets. Show Answer Correct Answer: D) Earnings and assets. 10. This type of money consists of a certificate or token that can be exchanged for an item of value. A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: B) Representative money. 11. Credit Cards take money directly out of your account ..... True or False? A) True. B) At the grocery store yes, but besides that no!. C) Depends on the situation. D) False. Show Answer Correct Answer: D) False. 12. An essential function for a bank is to A) Maximize its assets. B) Create money through lending. C) Lend all of its deposits. D) Minimize its reserve ratio. Show Answer Correct Answer: B) Create money through lending. 13. Anything that is accepted for the repayment of debt or in exchange for goods and services A) Cheddar. B) Money. C) Banks. D) Taxes. Show Answer Correct Answer: B) Money. 14. An investment where someone purchases a piece of a company. A) Currency. B) Dividends. C) Bonds. D) Stocks. Show Answer Correct Answer: D) Stocks. 15. Which of the following is NOT an example of a liquid asset (M1)? A) A checking account. B) Cash. C) Travelers' checks. D) A certificate of deposit. Show Answer Correct Answer: D) A certificate of deposit. 16. Deposits are 100, 000, RR=10%, no loans have been made, how much money does the bank have available to lend? A) 80, 000. B) 60, 000. C) 10, 000. D) 90, 000. Show Answer Correct Answer: D) 90, 000. 17. Which would be the best inflation rate? A) -4%. B) 3%. C) 15%. D) None of above. Show Answer Correct Answer: B) 3%. 18. The demand for money consists of A) M1 plus M2. B) The tools of the Fed. C) Asset demand plus transactions demand. D) Checkable deposits and savings accounts. Show Answer Correct Answer: C) Asset demand plus transactions demand. 19. The potential amount of money that banks can create based on the initial deposit. A) Money Multiplier. B) Open Market Operations. C) Bank Failures. D) Potential Money Creation Formula. Show Answer Correct Answer: A) Money Multiplier. 20. Features of a tax system include all of the following EXCEPT: A) Certainty. B) Simplicity. C) Fairness. D) Equal taxes on exports. Show Answer Correct Answer: D) Equal taxes on exports. 21. Money that is specifically decreed by a government as their currency A) Commodity Money. B) Barter System. C) Specie. D) Fiat Money. Show Answer Correct Answer: D) Fiat Money. 22. Which one of the following has members rather than customers? A) Central bank. B) Building societies. C) Insurance companies. D) Commercial bank. Show Answer Correct Answer: B) Building societies. 23. What type of bank is run by it's members? A) Commercial Bank. B) Paycheck Advance. C) Credit Union. D) Retail Bank. Show Answer Correct Answer: C) Credit Union. 24. You can spend and ..... your money. A) Burn. B) Trash. C) Save. D) Copy. Show Answer Correct Answer: C) Save. 25. What does central bank money consist of?A, Banknote and bank's deposits with the central bank.B, The public's deposits with commercial banks.C, The gold in the possession of the central bank. A) A. B) B. C) C. D) None of above. Show Answer Correct Answer: C) C. 26. What is this chapter about? A) Getting a job. B) Saving money. C) Growing money. D) Spending money. Show Answer Correct Answer: B) Saving money. 27. If there is something for which people want more, what frequently happens in an open market? A) Prices go up. B) Prices go down. C) Prices stay the same. D) None of above. Show Answer Correct Answer: A) Prices go up. 28. The amount of money actually borrowed. A) Mortgage. B) Interest. C) Money Supply. D) Principal. Show Answer Correct Answer: D) Principal. 29. Money supply is ..... concept A) Stock. B) Flow. C) Variable. D) All the above. Show Answer Correct Answer: A) Stock. 30. Financial Institutions include: A) Banks. B) Savings & Loans. C) Credit Unions. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesMoney Quiz 1Money Quiz 2Money Quiz 3Money Quiz 4Money Quiz 5Money Quiz 6Money Quiz 7Money Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books