This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Credit Cards take money directly out of your account ..... True or False? A) Depends on the situation. B) True. C) False. D) At the grocery store yes, but besides that no!. Show Answer Correct Answer: C) False. 2. 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. 3. Anything that is accepted for the repayment of debt or in exchange for goods and services A) Money. B) Taxes. C) Banks. D) Cheddar. Show Answer Correct Answer: A) Money. 4. An investment where someone purchases a piece of a company. A) Currency. B) Bonds. C) Stocks. D) Dividends. Show Answer Correct Answer: C) Stocks. 5. Which of the following is NOT an example of a liquid asset (M1)? A) Cash. B) Travelers' checks. C) A certificate of deposit. D) A checking account. Show Answer Correct Answer: C) A certificate of deposit. 6. 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. 7. Which would be the best inflation rate? A) -4%. B) 3%. C) 15%. D) None of above. Show Answer Correct Answer: B) 3%. 8. 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. 9. The potential amount of money that banks can create based on the initial deposit. A) Bank Failures. B) Money Multiplier. C) Potential Money Creation Formula. D) Open Market Operations. Show Answer Correct Answer: B) Money Multiplier. 10. Features of a tax system include all of the following EXCEPT: A) Fairness. B) Simplicity. C) Certainty. D) Equal taxes on exports. Show Answer Correct Answer: D) Equal taxes on exports. 11. Money that is specifically decreed by a government as their currency A) Specie. B) Fiat Money. C) Commodity Money. D) Barter System. Show Answer Correct Answer: B) Fiat Money. 12. Which one of the following has members rather than customers? A) Building societies. B) Central bank. C) Commercial bank. D) Insurance companies. Show Answer Correct Answer: A) Building societies. 13. What type of bank is run by it's members? A) Commercial Bank. B) Credit Union. C) Paycheck Advance. D) Retail Bank. Show Answer Correct Answer: B) Credit Union. 14. You can spend and ..... your money. A) Save. B) Burn. C) Copy. D) Trash. Show Answer Correct Answer: A) Save. 15. 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. 16. What is this chapter about? A) Spending money. B) Saving money. C) Growing money. D) Getting a job. Show Answer Correct Answer: B) Saving money. 17. 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. 18. The amount of money actually borrowed. A) Principal. B) Interest. C) Mortgage. D) Money Supply. Show Answer Correct Answer: A) Principal. 19. Money supply is ..... concept A) Stock. B) Flow. C) Variable. D) All the above. Show Answer Correct Answer: A) Stock. 20. 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 QuizzesMoney Quiz 1Money Quiz 2Money Quiz 3Money Quiz 4Money Quiz 5Money Quiz 6Money Quiz 7Money Quiz 8Money Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books