Money Quiz 27 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. In which market can you buy and sell money for other kinds of money (e.g., U.S. dollars for euros)?

Correct Answer: D) Currency Market.

2. The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a .....

Correct Answer: B) Decimal.

3. A place to keep money safe

Correct Answer: A) Bank.

4. The Fed keeps a certain amount of money out of circulation. This is referred to as the .....

Correct Answer: A) Reserve requirement.

5. Sarah goes to Chick fil a and buys lunch. In this transaction Sarah used her money in what way?

Correct Answer: D) Medium of Exchange.

6. Money must be easy to carry, which means it means which characteristic?

Correct Answer: D) Portability.

7. If the nominal interest raises from 4% to 7% then the

Correct Answer: B) Expected inflation rose by 3%.

8. The amount of currency in circulation in an economy.

Correct Answer: A) Money Supply.

9. Depositing a set amount into a bank for a set amount of time (without touching it)

Correct Answer: A) Certificate of Deposit.

10. Currency notes and coins are called as:

Correct Answer: D) Both legal tender and fiat money.

11. The bank is a ..... place to keep money.

Correct Answer: D) Safe.

12. If we put RM25 in our piggy bank and two weeks later, we still have RM25. What function has money fulfilled?

Correct Answer: D) Store of value.

13. Well-functioning financial markets promote

Correct Answer: D) Economic growth.

14. Which characteristic of money means it doesn't fall apart easily when handled?

Correct Answer: C) Durable.

15. Workers

Correct Answer: B) Labor.

16. A share of stock represents

Correct Answer: B) A portion of ownership in a corporation.

17. The central bank in the USA that regulates the monetary system

Correct Answer: A) The FED.

18. During the Free Banking Era between 1837 and 1863, banking in the United States was dominated by which of the following?

Correct Answer: C) State-chartered banks.

19. What is NOT a characteristic of money?

Correct Answer: D) Accessible.

20. Why is a budget a smart idea?

Correct Answer: A) You will think about what you need and want and plan how to spend your money.