This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The act of buyers and sellers freely & willingly engaging in market transactions A) Opportunity Cost. B) Scarcity. C) Specialization. D) Voluntary Exchange. Show Answer Correct Answer: D) Voluntary Exchange. 2. Bartering requires that the seller and the buyer want what the other has for exchange, otherwise the transaction cannot take place A) Double coincidence of wants. B) Portability. C) Divisibility. D) None of above. Show Answer Correct Answer: A) Double coincidence of wants. 3. Who is author of the ancient book on economics, Arthashastra? A) Sushrut. B) Chanakya. C) Megasthenes. D) Amartya Sen. Show Answer Correct Answer: B) Chanakya. 4. This characteristic of money refers to ability to retain its value ..... it is not too prone to inflation or deflation. A) Portability. B) Acceptability. C) Stability in value. D) Durability. Show Answer Correct Answer: C) Stability in value. 5. A prolonged period of rising stock prices and a general feeling of investor optimism: A) Animal market. B) Bear market. C) Bull market. D) Wolf market. Show Answer Correct Answer: C) Bull market. 6. Government issued and endorsed currency thats only use and purpose is to be used for the repayment of debt or for the purchasing of goods and services. A) Commodity Money. B) Money. C) Fiat Money. D) Bartering. Show Answer Correct Answer: C) Fiat Money. 7. The fact that all money must be identical so that people recognize it means that it meets which characteristic? A) Divisibility. B) Uniformity. C) Unit of account. D) Relatively scarce. Show Answer Correct Answer: B) Uniformity. 8. Objects that have value in themselves and are also used as money. A) Representative money. B) Commodity money. C) Simple money. D) Credit cards. Show Answer Correct Answer: B) Commodity money. 9. Which of the following is a type of banking service that allows your principal to grow through the adding in of interest? A) Basic checking account. B) Savings account. C) Charge account. D) Credit account. Show Answer Correct Answer: B) Savings account. 10. Which of the following is one of the three functions of money? A) Scarcity. B) Portability. C) Divisibility. D) Store of value. Show Answer Correct Answer: D) Store of value. 11. The idea that resources are limited; we don't have an unlimited supply of what we want A) Scarcity. B) Supply. C) Demand. D) Inflation. Show Answer Correct Answer: A) Scarcity. 12. Regressive taxes ..... A) Are higher the more you make. B) Are lower the more you make. C) Are the same for everyone. D) None of above. Show Answer Correct Answer: B) Are lower the more you make. 13. Anything that serves as a medium of exchange, a unit of account, and a store of value A) Money. B) Unit of Account. C) Goods. D) Services. Show Answer Correct Answer: A) Money. 14. This type of money does not have any value unless a government says it does A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: C) Fiat money. 15. Money must be easily divided into small parts so that people can purchase goods and services at any price; this meets which characteristic? A) Portability. B) Acceptability. C) Divisibility. D) Uniformity. Show Answer Correct Answer: C) Divisibility. 16. Why is a savings account a smart idea? A) Your money is safe, it can grow and you can save for something in the future. B) They burn it, trash it, hide it. C) They give it their friends, their family and strangers. D) They spend your money on pop, chips, and candy. Show Answer Correct Answer: A) Your money is safe, it can grow and you can save for something in the future. 17. Buying and selling government bonds (securities) by the Federal Reserve is called A) Monetizing the debt. B) Fiscal policy. C) Reserve requirement. D) Open market operations. Show Answer Correct Answer: D) Open market operations. 18. A tool used to buy something now and pay for it later A) Debit Card. B) Checks. C) Credit. D) Bankruptcy. Show Answer Correct Answer: C) Credit. 19. How do banks make profits? A) By charging people interest to borrow money. B) By charging people interest to keep their money there. C) By charging a fee every time a customer writes a check or uses a debit card. D) None of the above-banks are nonprofit institutions. Show Answer Correct Answer: A) By charging people interest to borrow money. 20. The purpose of debit cards is? A) To allow you to buy goods with only the money in your account. B) To allow you to buy goods with the banks money. C) To let you buy things online. D) To buy goods and services. Show Answer Correct Answer: A) To allow you to buy goods with only the money in your account. ← 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