Money Quiz 25 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. You can save for .....

Correct Answer: C) The future.

2. One of the disadvantages of operating a barter system is that trading is

Correct Answer: C) Limited by availability and demand of goods traded.

3. A unit of account allows us to place a ..... value on goods and .....

Correct Answer: B) Monetary/services.

4. ..... are a paper currency issued by the FED. this is the real name for our bills.

Correct Answer: B) Federal Reserve Notes.

5. This has value because the holder can exchange it for something else of value.

Correct Answer: B) Representative Money.

6. Counterfeiting money is a felony crime resulting in how many years in prison?

Correct Answer: C) 15.

7. The security feature in U.S. money that has been the most difficult to counterfeit.

Correct Answer: C) Security Strip.

8. The money an investor receives above and beyond the money initially invested is called

Correct Answer: C) Return.

9. What is currency?

Correct Answer: B) Paper money and Coins.

10. The tools and strategies used to stabilize the economy

Correct Answer: B) Monetary policy.

11. Money must have which of these characteristics

Correct Answer: C) Acceptable, Uniformity.

12. A commercial bank has two conflicting goals;

Correct Answer: D) Profits and liquidity.

13. Our central bank is also known as the

Correct Answer: A) Federal Reserve.

14. Which of the characteristics of money can be defined as "able to be broken down into smaller parts" ?

Correct Answer: D) Divisibility.

15. Anything of value

Correct Answer: A) Asset.

16. Which part of the Fed has 7 members?

Correct Answer: A) Board of Governors.

17. After the Civil War, the National Banking Acts gave the federal government the power to do all of the following EXCEPT:

Correct Answer: A) Insure banks against failure.

18. Monetary Policy is the Federal Reserve Systems attempt to .....

Correct Answer: A) Control the amount of money in circulation.

19. In institution that accepts deposits and makes loans is:

Correct Answer: A) A bank.

20. Another word for money

Correct Answer: C) Currency.