This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This is one half of the dual mandate of the Federal Reserve and is the combination of Frictional and Structural unemployment which equals around 4-6% unemployment A) Price Stability. B) Full Employment. C) Unemployment rate. D) Employment rate. Show Answer Correct Answer: B) Full Employment. 2. Which of the following is not instrument if monetary policy A) Bank rate. B) Open market operation. C) Selective credit control. D) Government spending. Show Answer Correct Answer: D) Government spending. 3. Section of the economy made up of individuals or families A) Firms. B) Households. C) Businesses. D) Factor. Show Answer Correct Answer: B) Households. 4. The economy is in recession. The FED decides to change to increase the money supply through ..... A) Monetary policy. B) Fiscal policy. C) Domestic policy. D) Foreign policy. Show Answer Correct Answer: A) Monetary policy. 5. Buys and Sells government bonds: A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: A) Open Market Operations. 6. The formula used for calculating money multiplier: A) 1/CRR. B) 1/SLR. C) 1/LRR. D) All of the above. Show Answer Correct Answer: C) 1/LRR. 7. ..... are the time and resources spent trying to exchange goods and services. A) Bargaining costs. B) Transaction costs. C) Contracting costs. D) Barter costs. Show Answer Correct Answer: B) Transaction costs. 8. Which of the following is not a characteristic of money? A) Divisibility. B) Portability. C) Acceptability. D) Responsibility. Show Answer Correct Answer: D) Responsibility. 9. The resources required to make a product (good or service) A) Economics. B) Consumption. C) Four factors of production. D) Scarcity. Show Answer Correct Answer: C) Four factors of production. 10. An economy in which the government is not involved in businesses and the factors of production are privately owned A) Factor Market. B) Command Economy. C) Market Economy. D) Resource Market. Show Answer Correct Answer: C) Market Economy. 11. What does the "I" in the interest formula stand for? A) Principal. B) Interest. C) Rate. D) Time. Show Answer Correct Answer: B) Interest. 12. High interest rates might ..... purchasing a house or car but at the same time high interest rates might ..... saving. A) Discourage; encourage. B) Discourage; discourage. C) Encourage; encourage. D) Encourage; discourage. Show Answer Correct Answer: A) Discourage; encourage. 13. A Good rule to improve your credit score A) Pay your bills on time. B) Go over your credit limit. C) Pay your bills late. D) Use credit when you don't need to. Show Answer Correct Answer: A) Pay your bills on time. 14. What is the place responsible for creating and printing U.S. paper money? A) U.S. Mint. B) Federal Reserve Bank. C) Bureau of Engraving and Printing. D) FDIC. Show Answer Correct Answer: C) Bureau of Engraving and Printing. 15. The American Dollar bill is an example of A) Commodity Currency. B) Representative Currency. C) Fiat Currency. D) Public Currency. Show Answer Correct Answer: C) Fiat Currency. 16. What is the largest source of income for banks? A) The interest they receive from loans. B) Fees charged to customers for accounts. C) Money deposited in savings accounts. D) Special accounts such as NOW accounts. Show Answer Correct Answer: A) The interest they receive from loans. 17. Paper money was invented in ..... A) Lydia. B) China. C) Greece. D) Rome. Show Answer Correct Answer: B) China. 18. The Chinese invented ..... A) electrumB) paper moneyC) silverD) language A) Electrum. B) Paper money. C) Silver. D) Language. Show Answer Correct Answer: B) Paper money. 19. If interest rates are falling, then you can expect people to A) Demand less money. B) Demand more money. C) Invest more money. D) Keep everything the same. Show Answer Correct Answer: B) Demand more money. 20. By far the most large type of financial institution, and offer a wide range of financial services A) Holla My Rolla. B) Commercial Banks. C) Credit Unions. D) Mutual Savings. Show Answer Correct Answer: B) Commercial Banks. ← 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