Money Quiz 20 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Which bank enjoys monopoly power of Note issue?

Correct Answer: C) Central Bank.

2. Inflation .....

Correct Answer: A) Is like a tax.

3. Part of the economy where labor & resources are sold

Correct Answer: B) Factor Market.

4. As a measure of money, which of the following is NOT included in M2?

Correct Answer: A) Foreign Deposits.

5. Which of the following represents a way to profit from buying stock?

Correct Answer: A) Capital gains.

6. The Federal Reserve System is

Correct Answer: B) The U.S. central bank.

7. A bond is

Correct Answer: A) Loan that represents debt that the government or a corporation must repay to an investor.

8. Money set aside on which interest is paid is called?

Correct Answer: A) Principal.

9. The fall of the Roman Empire ushered in .....

Correct Answer: A) The Dark Ages.

10. The function of money that provides a means for comparing the values of goods and services.

Correct Answer: A) Unit of Account.

11. Which bank operate in public interest without profit motive

Correct Answer: B) RBI.

12. What effect does inflation have on the purchasing power of money?

Correct Answer: A) Causes it to decrease.

13. All units of money must be identical so that people recognize it.

Correct Answer: C) Uniformity.

14. A U.S. government agency that provides insurance on customer's deposits in a bank account.

Correct Answer: C) Federal Deposit Insurance Corporation.

15. A ..... is a plan for how how to use money.

Correct Answer: A) Budget.

16. What does Inflation do to the value of money?

Correct Answer: B) Makes it go down.

17. Your money is ..... at a bank.

Correct Answer: A) Safe.

18. What do we save at the bank?

Correct Answer: D) Money.

19. 'In Malaysia, Ringgit is used to measure the value of goods and services'. The statement above refers to .....

Correct Answer: B) Measure of value.

20. The Federal Reserve is in charge of what?

Correct Answer: D) All of the above.