Money Quiz 10 (20 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)

Correct Answer: C) 8 years.

2. "The Fed" refers to the .....

Correct Answer: C) Federa Reserve System.

3. Why is using coins as money easier than using gold bars?

Correct Answer: B) Coins are more portable.

4. One half of the dual mandate of the Federal Reserve where the FED works to limit inflation.

Correct Answer: D) 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

Correct Answer: A) Uniformity.

6. What is the other name of money multiplier

Correct Answer: A) Deposit multiplier.

7. A system that requires banks to hold reserves equal to some fraction (%) of their checkable deposits.

Correct Answer: B) Fractional Reserve Banking System.

8. How many district banks are there?

Correct Answer: C) 12.

9. What card uses your money during a transaction and takes right from your account?

Correct Answer: B) Debit Cards.

10. What is medium of exchange?

Correct Answer: A) Money serves as measuring stick Used to express the worth of something.

11. How easy it is to convert an asset into cash

Correct Answer: A) Liquidity.

12. Money with intrinsic value that can have some other use is called

Correct Answer: A) Commodity money.

13. The amount banks hold beyond required reserve; amount that banks can lend.

Correct Answer: B) Excess Reserves.

14. A finished product used by an individual for personal use.

Correct Answer: C) Consumer Good.

15. Money must be able to withstand the wear and tear of many people using it.

Correct Answer: B) Durability.

16. The exchange of goods without the exchange of money

Correct Answer: B) Barter System.

17. Money must withstand physical wear and tear from being used over and again.

Correct Answer: B) Durability.

18. Money must be widely recognized by both parties before an exchange for goods or services happens.

Correct Answer: B) Acceptability.

19. To finance the building of a new police station, a local government is most likely to issue a

Correct Answer: C) Municipal bond.

20. How do banks make money?

Correct Answer: C) Giving loans with interest.