This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How many roles of money are there? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: C) 3. 2. Where goods & services are sold in the circular flow model A) Businesses. B) Households. C) Factor Market. D) Product Market. Show Answer Correct Answer: D) Product Market. 3. An institution for receiving, keeping and lending money A) Bank. B) Bond. C) Stock. D) Company. Show Answer Correct Answer: A) Bank. 4. The Congress of the United States printed Greenbacks to help fund the A) Korean War. B) Civil War. C) World War I. D) Spanish-American War. Show Answer Correct Answer: B) Civil War. 5. A key factor in producing high economic growth is A) Eliminating foreign trade. B) Well-functioning financial markets. C) High-interest rates. D) Stock market volatility. Show Answer Correct Answer: B) Well-functioning financial markets. 6. What is a potential downside to investing in stocks, bonds, and other types of securities? A) You will pay very high taxes. B) You may lose money. C) You have to receive dividends. D) You must participate in investor meetings. Show Answer Correct Answer: B) You may lose money. 7. To find the money creating potential of the ENTIRE banking system, we multiply? A) Banking multiplier times MPS. B) Banking multiplier times actual reserves. C) Banking multiplier times excess reserves. D) Banking multiplier times required reserves. Show Answer Correct Answer: C) Banking multiplier times excess reserves. 8. How many members are on the Board of Governors? A) 7 Governors + 12 Reserve Bank Presidents+ NY Reserve Pres. B) 12 Presidents of the Reserve Banks. C) 7 Governors. D) 4 Governors + 4 Reserve Presidents + 1 Economist. Show Answer Correct Answer: C) 7 Governors. 9. Which among the following is considered to be the most liquid asset? A) Gold. B) Money. C) Treasury Bonds. D) Land. Show Answer Correct Answer: B) Money. 10. Which one of the following is responsible for issuing bank notes? A) Building societies. B) Central bank. C) Commercial bank. D) Insurance companies. Show Answer Correct Answer: B) Central bank. 11. To trade goods or services without the use of money is ..... A) Bartering. B) Trading. C) Economy. D) Debt. Show Answer Correct Answer: A) Bartering. 12. Which of these is NOT a reason to save money? A) Retirement. B) Unexpected emergency. C) Major purchases. D) So you can loan it to your friends. Show Answer Correct Answer: D) So you can loan it to your friends. 13. The Endowment Effect is our tendency to assign more value to the things we already own compared to A) The things we have purchased in the past. B) The things we have purchased on credit. C) The things we could own. D) The things that we have sold. Show Answer Correct Answer: C) The things we could own. 14. This function of money allows people to transfer purchasing power from the present to the future. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: C) Store of value. 15. ..... markets transfer funds from people who have an excess of available funds to people who have a shortage. A) Commodity. B) Fund-available. C) Financial. D) Derivative exchange. Show Answer Correct Answer: C) Financial. 16. The rate at which central bank lends to commercial banks for long term requirements is called? A) SLR. B) CRR. C) Bank rate. D) None of above. Show Answer Correct Answer: C) Bank rate. 17. In order to fulfill this function, money must be relatively stable in value and not too eroded by inflation. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: C) Store of value. 18. Money serves as ..... A) Source of income. B) Pillar of economy. C) Store of value. D) Physical property. Show Answer Correct Answer: C) Store of value. 19. This money is valuable because it is made of something valuable and it's all identical A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: A) Commodity money. 20. Function of money in which any item is widely accepted in the exchange of other goods or services A) Market Structure. B) Minimum Wage. C) Store of Value. D) Medium of Exchange. Show Answer Correct Answer: D) Medium of Exchange. ← 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