This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A commercial bank chartered by the National Banking System A) National bank. B) Corporation. C) Central bank. D) Reserve requirement. Show Answer Correct Answer: A) National bank. 2. If you lose a check and want to prevent someone else from using it, you can issue this type of order to the bank: A) Stop payment. B) Demand deposit. C) Outstanding check. D) Cancelled check. Show Answer Correct Answer: A) Stop payment. 3. Money that by law must be accepted for payment of public and private debts A) Legal Tender. B) Labor. C) Greed. D) Capital. Show Answer Correct Answer: A) Legal Tender. 4. Increasing the reserve requirement has which of the following results: A) More is lent out and more is paid in interest. B) More is lent out and less is paid back in interest. C) Less is lent out and more is paid in interest. D) Less is lent out and less is lent in interest. Show Answer Correct Answer: C) Less is lent out and more is paid in interest. 5. Which of the following is not the function of the commercial bank? A) Issue of paper notes. B) Acceptance of deposits. C) Advancing loans. D) Credit creation. Show Answer Correct Answer: A) Issue of paper notes. 6. Who regulate money supply A) Govt. of India. B) RBI. C) Planning Commission. D) Commercial bank. Show Answer Correct Answer: B) RBI. 7. The amount of money we pay for a good or service A) Currency. B) Price. C) Inflation. D) Economics. Show Answer Correct Answer: B) Price. 8. The higher the LRR credit creation will be A) Higher. B) Lower. C) Constant. D) None of these. Show Answer Correct Answer: B) Lower. 9. Financial markets promote greater economic efficiency by channeling funds from ..... to ..... A) Investors; savers. B) Borrowers; savers. C) Savers; borrowers. D) Savers; lenders. Show Answer Correct Answer: C) Savers; borrowers. 10. Any seller will trade their products for money . Which role of money is this? A) Unit of account/standard of value. B) Store of value. C) Medium of exchange. D) None of above. Show Answer Correct Answer: C) Medium of exchange. 11. A collection of funds from many individuals and invested in stocks, bonds, and other assets A) Mutual Fund. B) Stock. C) Stock Split. D) Diversification. Show Answer Correct Answer: A) Mutual Fund. 12. You can save for something ..... to buy. A) You need. B) Special. C) Trashed. D) Burned. Show Answer Correct Answer: B) Special. 13. Liquidity can best be described as ..... A) Requiring prior authorization from bank to access funds. B) Easiest exchange of cash and goods and services. C) M2 measure of money. D) Foreign Deposits. Show Answer Correct Answer: B) Easiest exchange of cash and goods and services. 14. The Chinese invented ..... A) Electrum. B) Paper money. C) Silver. D) Language. Show Answer Correct Answer: B) Paper money. 15. The interest rate the Fed charges commercial banks for loans A) Fed Fund Rate. B) Reserve Requirement Rate. C) Discount Rate. D) I.O.U Rate. Show Answer Correct Answer: C) Discount Rate. 16. What is the interest rate called when a bank loans money to another bank usually just overnight. A) Federal fund rate. B) Discount rate. C) Prime rate. D) Interest rate. Show Answer Correct Answer: A) Federal fund rate. 17. A line of credit for checks your account can't cover. A) Overdraft protection. B) Endorsement. C) Stop payment. D) Canceled check. Show Answer Correct Answer: A) Overdraft protection. 18. Money deposited into a bank account that can be accessed by writing a check or using a debit card is a A) Request Withdrawal account. B) Demand Deposit Account. C) Credit Card Account. D) Subscriber Spending Account. Show Answer Correct Answer: B) Demand Deposit Account. 19. The current chairperson of the Federal Reserve is: A) Jerome Powell. B) Alan Greenspan. C) Ben Bernanke. D) Janet Yellen. Show Answer Correct Answer: A) Jerome Powell. 20. Anything that is used to determine value in an exchange? A) Currency. B) Store of value. C) Medium of exchange. D) Unit of account. Show Answer Correct Answer: C) 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