This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Government, businesses, and individuals in the United States all accept US currency because: A) Currency is valued higher than coins. B) They have confidence in the government. C) Currency is the only type of money. D) All currency is backed up by gold. Show Answer Correct Answer: B) They have confidence in the government. 2. When interest rates rise, the demand for money (think of loans) A) Increases. B) Decreases. C) Is unaffected. D) None of above. Show Answer Correct Answer: B) Decreases. 3. What is a family most likely to do if they want to purchase a home? A) Use a credit card. B) Get a mortgage. C) Open a checking account. D) Purchase a certificate of deposit. Show Answer Correct Answer: B) Get a mortgage. 4. The idea that an economy regulates itself is known as A) Balanced Economics. B) Classical Economics. C) Stable Economics. D) Keynesian Economics. Show Answer Correct Answer: B) Classical Economics. 5. Which of the characteristics of money can be defined as "easily moved" ? A) Portability. B) Durability. C) Divisibility. D) Uniformity. Show Answer Correct Answer: A) Portability. 6. This is a system where a reserve, or part, of a deposit needs to be kept on hand. A) Aggregate Measures. B) Fractional reserve system. C) Multiplier effect. D) Primary reserve. Show Answer Correct Answer: B) Fractional reserve system. 7. The Fed's key function is to A) Make sure the nation's banking system is sound and safe. B) Maintain an effective payment system for banks and government. C) Promote a healthy economy by using monetary policy. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. A cash obligation A) Liquid asset. B) Owner's equity. C) Asset. D) Liability. Show Answer Correct Answer: D) Liability. 9. ..... is a bank that, among other things, can lend money to other banks. A) Congress. B) Central Bank. C) Department of the Interior. D) National Bank. Show Answer Correct Answer: B) Central Bank. 10. Which function of money encourages people to save money? A) Medium of exchange. B) Store of value. C) Unit of account. D) Acceptability. Show Answer Correct Answer: B) Store of value. 11. Money that can be used for alternative purposes, such as corn, hemp, gunpowder and musket balls is known as A) Fiat money. B) Federal Reserve System (FED). C) Convenient money. D) Commodity money. Show Answer Correct Answer: D) Commodity money. 12. Something accepted by all parties as payment for goods and services A) Medium of exchange. B) Measure of value. C) Store of value. D) None of above. Show Answer Correct Answer: A) Medium of exchange. 13. Three functions of money ..... A) Fiat money, Medium of Exchange, and Store of Value. B) Medium of Value, Store of exchange, and Representative money. C) Medium of Exchange, Measure of value, Store of value. D) Commondity Money, Medium of Value, Store of Value. Show Answer Correct Answer: C) Medium of Exchange, Measure of value, Store of value. 14. Lowering interest rates to stimulate the economy is called: A) Fiscal policy. B) Easy Money. C) Tight Money. D) Monetary policy. Show Answer Correct Answer: D) Monetary policy. 15. ..... is a designation printed on paper currency that says it must be accepted as payment A) Barter. B) Fiat. C) Legal tender. D) Specie. Show Answer Correct Answer: C) Legal tender. 16. Which institution perform the activity of credit creation A) COMMERCIAL BANK. B) Central bank. C) Both. D) None of these. Show Answer Correct Answer: A) COMMERCIAL BANK. 17. A commercial bank sells $ 10k in securities. The reserve requirement is 10%. How much of the money can the bank lend? A) $ 10, 000. B) $ 9, 000. C) $ 1, 000. D) $ 0. Show Answer Correct Answer: A) $ 10, 000. 18. Money supply includes A) All deposits in banks. B) Only time deposits. C) Only demand deposits. D) Currency with bank. Show Answer Correct Answer: C) Only demand deposits. 19. Are credit cards considered money? A) Yes (It's your money). B) No. C) Yes (It's like a loan). D) None of above. Show Answer Correct Answer: C) Yes (It's like a loan). 20. All of the following are examples of predatory lenders EXCEPT: A) Payday lenders. B) Check cashing stores. C) Credit unions. D) Pawn shops. Show Answer Correct Answer: C) Credit unions. ← 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