This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Selling ..... in a company is a way of selling slices of ownership of said company. A) Stock. B) Profits. C) Savings. D) Partnership. Show Answer Correct Answer: A) Stock. 2. The primary responsibilities of the Federal Reserve are ..... A) Making monetary decisions that regulates the economy. B) Promoting economic growth. C) Determines the supply of money. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. The central bank of the United States. A) The Federal Reserve System. B) Advisory councils. C) Monetary policy. D) Discount rate. Show Answer Correct Answer: A) The Federal Reserve System. 4. ..... a system in which currency could be exchanged for a certain amount of gold. A) Legal tender. B) Gold Standard. C) FDIC. D) Specie. Show Answer Correct Answer: B) Gold Standard. 5. Printed on a Federal Reserve note is this statement: "THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE. " This reflects money's function as A) All of these. B) Store of value. C) Medium of exchange. D) Portability. Show Answer Correct Answer: C) Medium of exchange. 6. What was created by President Abraham Lincoln to combat counterfeiting? A) Secret Service. B) Federal Reserve System. C) Bureau of Engraving and Printing. D) Mutilated Currency Division. Show Answer Correct Answer: A) Secret Service. 7. What is inflation? A) Rise in all prices. B) Rise in most prices. C) Rise in some prices. D) Rise in general prices. Show Answer Correct Answer: D) Rise in general prices. 8. A person who looks at current trends in the market to make decisions illustrates what style of investing? A) Socially responsible investing. B) Fundamental analysis. C) Technical analysis. D) Zero-sum investing. Show Answer Correct Answer: C) Technical analysis. 9. Two units of the same money must be the same in terms of what they will buy, that is, they must be A) Divisible. B) Portable. C) Acceptable. D) Uniform. Show Answer Correct Answer: D) Uniform. 10. Where buyers and sellers learn information from one another and voluntarily exchange goods, services, & money A) Market. B) Partnership. C) Specialization. D) Command Economy. Show Answer Correct Answer: A) Market. 11. If the Federal Reserve sells bonds on the open market, what effect does this action have on the nation's money supply? A) Increases. B) Stays the same. C) Decreases. D) It's uncertain. Show Answer Correct Answer: C) Decreases. 12. ..... is money in the form of gold or silver coins. A) Commodity money. B) Fiat money. C) Representative money. D) The gold and silver standard. Show Answer Correct Answer: A) Commodity money. 13. Money must be easily divided into smaller denominations (ex. making change). A) Durability. B) Divisibility. C) Acceptability. D) Uniformity. Show Answer Correct Answer: B) Divisibility. 14. Raw materials (i.e. cotton, oil ..... etc.) A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 15. Barter is the ..... form of trade. A) Most complex. B) Simplest. C) Most modern. D) Best. Show Answer Correct Answer: B) Simplest. 16. In modern times ..... A) Banks can issue their own legal tender. B) Paper money is backed by gold. C) Money is no longer needed. D) Some cultures still measure their wealth in animals. Show Answer Correct Answer: D) Some cultures still measure their wealth in animals. 17. A banking system that keeps only a small portion of deposits on hand and lends out the rest. A) Fractional Reserve Banking. B) Federal Reserve System. C) Federal Deposit Insurance Corporation. D) Credit Union. Show Answer Correct Answer: A) Fractional Reserve Banking. 18. What does the Federal Reserve do? A) Sets tax rates in the United States. B) Funds large-scale military operations. C) Regulates the stock market. D) Oversees banks and the money supply. Show Answer Correct Answer: D) Oversees banks and the money supply. 19. Who regulates money supply in India? A) Government of India. B) Reserve Bank of India. C) Commercial Banks. D) Planning Commission. Show Answer Correct Answer: B) Reserve Bank of India. 20. When the Federal Reserve wants to encourage the economy to grow, what does it do with the money supply? A) Increase the money supply. B) Decrease the money supply. C) Sell all of its assets. D) Issue more government securities. Show Answer Correct Answer: A) Increase the money supply. ← PreviousNext →Related QuizzesFinance QuizzesMoney Quiz 1Money Quiz 3Money Quiz 4Money Quiz 5Money Quiz 6Money Quiz 7Money Quiz 8Money Quiz 9Money Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books