This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the best way the Fed controls the money supply A) Interest rates. B) Open Market policy. C) Prime rates. D) It doesn't. Show Answer Correct Answer: B) Open Market policy. 2. To avoid carrying cash, Ned pays for his lunch using this card. Each time he uses this card his checking account decreases. A) Credit. B) Debit. C) Both. D) None of above. Show Answer Correct Answer: B) Debit. 3. What is the value of multiplier if LRR is 10% A) 20. B) 10. C) 5. D) 50. Show Answer Correct Answer: B) 10. 4. High-interest rates might cause a corporation to ..... building a new plant that would provide more jobs. A) Complete. B) Consider. C) Postpone. D) Contemplate. Show Answer Correct Answer: C) Postpone. 5. An agreement to purchase or sell stocks for a specified price until a date in the future is reached A) Options. B) Default. C) Mutual Fund. D) Diversification. Show Answer Correct Answer: A) Options. 6. Money allows the comparison of different values and this function is referred to as ..... A) Medium of exchange. B) Store of value. C) Measure of value. D) Standard of deferred payment. Show Answer Correct Answer: C) Measure of value. 7. What is a bank's primary source of income? A) The Fed. B) China. C) Interest. D) Housing market. Show Answer Correct Answer: C) Interest. 8. What is the source of fiat money's value? A) It represents the value of another item. B) Government decree. C) Presidential pardon. D) It is equal to the value of the stock market. Show Answer Correct Answer: B) Government decree. 9. What are the three functions of money? A) Medium of exchange, store of value, unit of account. B) Medium of exchange, store of value, provides barter. C) Store of value, medium of exchange, creates instability. D) None of above. Show Answer Correct Answer: A) Medium of exchange, store of value, unit of account. 10. How long do $ 100 bills last? A) 4 years. B) 9 years. C) 12 years. D) 15 years. Show Answer Correct Answer: B) 9 years. 11. The economy is in recession. The government 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: B) Fiscal policy. 12. ..... is the privately owned, publicly controlled central bank of the U.S. A) J.P. Morgan Chase. B) Bank of America. C) The Federal Reserve System (FED). D) Wells Fargo. Show Answer Correct Answer: C) The Federal Reserve System (FED). 13. An asset that can be easily converted to cash is ..... A) A withdrawal. B) Liquid. C) Overdraft protection. D) An ATM. Show Answer Correct Answer: B) Liquid. 14. Demand deposits include ..... A) Saving account deposits and fixed deposits. B) Saving account deposits and current account deposits. C) Current account deposits and fixed deposits. D) All types of deposits. Show Answer Correct Answer: B) Saving account deposits and current account deposits. 15. Money must be scarce. A) Limited Supply. B) Medium of Exchange. C) Store of Value. D) Fiat Money. Show Answer Correct Answer: A) Limited Supply. 16. Tools A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 17. In the past (prior to the 1970's) the U.S. government couldn't issue more money than it had in gold reserves. This was called the: A) Gold supply. B) Gold standard. C) Gold savings. D) Gold backing. Show Answer Correct Answer: B) Gold standard. 18. This is the key monetary policy making body of the Federal Reserve. It is comprised of several district bank presidents and the Chairman of the Federal Reserve. A) Board of Governors. B) Board of Bankers. C) Federal Open Market Committee. D) Presidential Banking Committee. Show Answer Correct Answer: C) Federal Open Market Committee. 19. The Fed influences the money supply and interest rates in the economy to keep this low and stable- A) Supply. B) Price. C) Interest. D) Inflation. Show Answer Correct Answer: D) Inflation. 20. Federal Reserve pays banks for their reserves. A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: D) Interest Rate Paid on Reserves. ← 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