Money Quiz 3 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. What is true about a debit card?

Correct Answer: D) All of the above.

2. Governments have declared their currency to be .....

Correct Answer: D) Legal tender.

3. Today most of our money is issued by

Correct Answer: D) The Federal Reserve.

4. ..... is money by government decree, has no alternative value

Correct Answer: D) Fiat money.

5. Each of the following FED actions will contract the money supply except

Correct Answer: D) Buy bonds.

6. This is money by decree; it works because the government says it is legal tender and you believe it has purchasing power.

Correct Answer: A) Fiat.

7. The one rupee note and coins are issued by:

Correct Answer: C) Ministry of Finance.

8. Trading for things with other goods is called

Correct Answer: C) Bartering.

9. When the Federal Reserve acts to increase the money supply and speed up the economy in order to achieve the goal of lowering unemployment.

Correct Answer: C) Expansionary Monetary Policy.

10. In which market can you buy and sell debt securities (like a loan) that will be paid back by a certain date with interest?

Correct Answer: C) Bond Market.

11. What is the ratio of deposits which commercial banks are required to keep with themselves called?

Correct Answer: B) SLR.

12. The central banking system of the United States.

Correct Answer: B) Federal Reserve System.

13. Money can be used to settle accounts in the future and this function is referred to as .....

Correct Answer: C) Standard of deferred payment.

14. A ..... is at a bank

Correct Answer: C) Savings account.

15. The key word "compare" describes which role of money?

Correct Answer: A) Unit of account/standard of value.

16. The ability to be used as, or easily converted into, cash is called

Correct Answer: D) Liquidity.

17. Anything used as a medium of exchange

Correct Answer: B) Money.

18. Which part of the Fed decides when to raise or lower interest rates?

Correct Answer: D) Federal Open Market Committee.

19. Which of the following is not a Quantitative Method of credit control?

Correct Answer: B) Margin Requirements.

20. Money that has value simply because the government says it does is called .....

Correct Answer: C) Fiat money.