Money Quiz 11 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. All of the following are examples of M2 EXCEPT

Correct Answer: B) Demand deposits.

2. What does the FDIC do?

Correct Answer: B) Protects your money should the bank be robbed.

3. A stock split is most likely to occur when

Correct Answer: C) The price of a stock becomes too high.

4. The money supply of the United States is made up of which of the following?

Correct Answer: C) All the money available in the economy.

5. The monetary value assigned to a product or service.

Correct Answer: B) Price.

6. 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?

Correct Answer: A) Certificate of deposit.

7. The item used must have a standard appearance so that it is recognised and seen to represent an agreed fixed amount

Correct Answer: C) Uniform.

8. Individuals who come up with a new idea for a good or service, then they make it a reality

Correct Answer: D) Entrepreneur.

9. Anything that is used as a medium of exchange, a measure of value, and a store of value?

Correct Answer: D) Money.

10. A machine that replaces a bank teller for simple transactions or transactions after hours is called?

Correct Answer: A) ATM.

11. The interest rate the bond issuer pays to the bondholder is called the

Correct Answer: A) Coupon rate.

12. This is the total amount borrowed:

Correct Answer: A) Principal.

13. A product that can be used to satisfy a want or need.

Correct Answer: C) Goods.

14. What kinds of money are included in M1?

Correct Answer: B) Currency.

15. Deposit creation by banks comes to an end when .....

Correct Answer: D) Total reserves equal initial deposits.

16. Currency includes

Correct Answer: A) Paper money and coins.

17. 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.

Correct Answer: B) Unit of account.

18. Which is a good synonym for the word "BARTER" in the term barter economy?

Correct Answer: A) Trade.

19. A share of common stock is a claim on a corporation's

Correct Answer: D) Earnings and assets.

20. This type of money consists of a certificate or token that can be exchanged for an item of value.

Correct Answer: B) Representative money.