Money Quiz 21 (20 MCQs)

Quiz Instructions

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1. There are functions of money. Which one is FALSE?

Correct Answer: D) Limited use.

2. Which of these can cost you money in large interest payments?

Correct Answer: B) A credit card.

3. What is the definition of role of money?

Correct Answer: A) Commonly appropriate as a product/service payment.

4. Function of money in which any commodity can be saved for later use

Correct Answer: C) Store of Value.

5. What is the equation of exchange?

Correct Answer: C) MV=PQ=GDP.

6. To understand the financial system, you need to picture two different groups called Lenders and .....

Correct Answer: B) Borrowers.

7. Money used to for exchange of goods and service describes which basic function of money?

Correct Answer: A) Medium of exchange.

8. Which of the following is a basic characteristic of money?

Correct Answer: D) All of these are correct.

9. Money that you owe

Correct Answer: D) Debt.

10. People can take their money with them easily.

Correct Answer: A) Portability.

11. Money that has a value as something other than money.

Correct Answer: B) Commodity Money.

12. When resources are limited and the need for goods & services are unlimited

Correct Answer: C) Scarcity.

13. A bank that can lend to other banks in times of need, or a "bankers' bank"

Correct Answer: A) Central bank.

14. Investment is

Correct Answer: B) The act of redirecting resources from being consumed today so that they may create benefits in the future.

15. RR = 10%, what is the banking multiplier?

Correct Answer: D) 10.

16. The exchange of goods and services

Correct Answer: A) Trade.

17. A general increase in prices

Correct Answer: B) Inflation.

18. Trade is made easier because of this function of money that eliminates the need to barter (trade goods for goods).

Correct Answer: B) Medium of Exchange.

19. Money which is accepted as a medium of exchange because of trust between the payer and the payee is called-

Correct Answer: C) Fiduciary money.

20. A person who invests in a company based on its mission and ethical practices illustrates which style of investing?

Correct Answer: A) Socially responsible investing.