This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Like commercial banks, they offer a wide range of financial services. Originally set up for smaller customers who did not feel welcomed by the big commercial banks A) Credit Unions. B) Mutual Savings Banks. C) Commercial Banks. D) Savings and Loans. Show Answer Correct Answer: B) Mutual Savings Banks. 2. The Fed ..... banks to ensure the soundness of the banking system. A) Regulates. B) Closes. C) Opens. D) Runs. Show Answer Correct Answer: A) Regulates. 3. The amount of money the bank has available to lend A) Excess reserves. B) Required reserves. C) Actual reserves. D) Navy reserves. Show Answer Correct Answer: A) Excess reserves. 4. Probably the governors' most important responsibility is A) Participating on the FOMC. B) Controlling the economy. C) Monitoring commercial banks. D) None of above. Show Answer Correct Answer: A) Participating on the FOMC. 5. During times of hyperinflation A) People often adopt something other than the official currency to use as money. B) People hoard the official currency. C) The purchasing power of the currency increases rapidly. D) The money supply is decreasing. Show Answer Correct Answer: A) People often adopt something other than the official currency to use as money. 6. Our bank for banks A) Federal Reserve Bank. B) Fractional Reserve Banking. C) Monetary Policy. D) Fiscal Policy. Show Answer Correct Answer: A) Federal Reserve Bank. 7. All of the money available in the US economy A) Treasury. B) Money Supply. C) Banks. D) Congress. Show Answer Correct Answer: B) Money Supply. 8. Of money's three functions, the one that distinguishes money from other assets is its function as a A) Store of value. B) Unit of account. C) Standard of deferred payment. D) Medium of exchange. Show Answer Correct Answer: D) Medium of exchange. 9. In which year the Reserve Bank of the India was established? A) 1945. B) 1947. C) 1935. D) 1953. Show Answer Correct Answer: C) 1935. 10. Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A) Commodity markets. B) Fund-available markets. C) Derivative exchange markets. D) Financial markets. Show Answer Correct Answer: D) Financial markets. 11. The fee charged by a financial institution when you borrow money A) Deposit. B) Withdraw. C) Interest. D) Loan. Show Answer Correct Answer: C) Interest. 12. Banks keep a portion of deposits in-house and loan the rest A) Fractional Reserve Banking. B) Federal Reserve Bank. C) Certificate of Deposit. D) Speculation. Show Answer Correct Answer: A) Fractional Reserve Banking. 13. A certain % of checkable deposits that banks keep on reserve. A) Reserve Requirement. B) Excess Reserves. C) Savings. D) Fractional Reserve. Show Answer Correct Answer: A) Reserve Requirement. 14. Define money! A) ONLY a coin which is used to pay for goods and services. B) Anything that is generally accepted in payment for goods & services. C) A green note given to the government in gratitude for keeping us safe. D) Goods and Services represented by money. Show Answer Correct Answer: B) Anything that is generally accepted in payment for goods & services. 15. When investors pool their money together to allow for more styles/types of investing. A) Bond. B) Stocks. C) Mutual Fund. D) Futures. Show Answer Correct Answer: C) Mutual Fund. 16. The primary role of the Federal Reserve Bank is to steer the economy by A) Controlling the budget. B) Setting spending levels. C) Controlling the money supply. D) Loaning out money. Show Answer Correct Answer: C) Controlling the money supply. 17. What are the 3 functions of money? A) Get rich influence people and flaunt. B) Medium of exchange standard of valuestore of value. C) It doesn't have a function. D) Deposit withdrawal interest. Show Answer Correct Answer: B) Medium of exchange standard of valuestore of value. 18. Specialize in accepting savings deposits, & making mortage & other loans. Originally formed as home building societies, later allowed to expand into commercial banking acitivities A) Commercial Banks. B) Credit Unions. C) Savings and Loans. D) Mutual Savings Bank. Show Answer Correct Answer: C) Savings and Loans. 19. The ancient Lydians were the first to use ..... A) The barter system. B) Precious metal coins as money. C) Salt as a medium of exchange. D) Paper money. Show Answer Correct Answer: B) Precious metal coins as money. 20. If you sell something and choose not to spend the money earned right away, the money is acting as a A) Unit of Account. B) Store of Value. C) Medium of Exchange. D) Demand Deposit. Show Answer Correct Answer: B) Store of Value. ← 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