This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 35 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Accumulating money to use later is which role of money? A) Unit of account/standard of value. B) Store of value. C) Medium of exchange. D) None of above. Show Answer Correct Answer: B) Store of value. 2. Which of these is an example of M1? A) Savings deposits. B) Property. C) Cash. D) Credit. Show Answer Correct Answer: C) Cash. 3. Money is functioning as a standard of value when you A) Use it to compare two houses that are different prices. B) Buy jeans at the mall. C) Buy a rare baseball card that you expect will increase in value. D) Trade a cup of sugar for two eggs. Show Answer Correct Answer: A) Use it to compare two houses that are different prices. 4. The money that banks must keep in their vaults and are not able to loan out is called A) Required Reserves. B) Loadable Funds. C) Excess Reserves. D) Dollars and Cents. Show Answer Correct Answer: A) Required Reserves. 5. Refers to the turn over rate, or how often money is used on average in a given year. A) Real Output. B) Monetary Growth Rule. C) Velocity. D) Monetary Policy. Show Answer Correct Answer: C) Velocity. 6. Anything that sets the standard of value of goods and services acceptable to all parties involved in a transaction is called? A) The medium of economy. B) The medium of change. C) The medium of exchange. D) Money. Show Answer Correct Answer: C) The medium of exchange. 7. This function of money is money as a "yardstick, " a way to measure the relative worth of a variety of products. A) Medium of exhange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: B) Unit of account. 8. What led to the creation of the Federal Reserve System? A) The stock market crash in 1929. B) The establishment of the Department of Treasury. C) A series of bank panics and failures in the early 1900s. D) The great recession of 2008. Show Answer Correct Answer: C) A series of bank panics and failures in the early 1900s. 9. Which is not a use of money? A) Medium of exchange. B) A store of value. C) Unit of account. D) To start a fire. Show Answer Correct Answer: D) To start a fire. 10. The Feds attempts to sway the level of inflation and real GDP in our economy A) Monetary Policy. B) Fiscal Policy. C) Diversification. D) Share. Show Answer Correct Answer: A) Monetary Policy. 11. A system in which the basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold A) Corporation. B) Fiat money. C) Stock. D) Gold standard. Show Answer Correct Answer: D) Gold standard. 12. What is the store of value? A) The feature of money that allows time to pass between earning choke and spending income. B) How much a store cost. C) The price of a business to be turnt into a store. D) The earnings of a store. Show Answer Correct Answer: A) The feature of money that allows time to pass between earning choke and spending income. 13. What would happen of a commercial bank decided to hold more than required reserves? A) Decrease in checking accounts. B) Decrease the amount of potential loans made by the bank. C) Increase the interest rate offered by the bank. D) Decrease the reserve ratio of the banking system. Show Answer Correct Answer: B) Decrease the amount of potential loans made by the bank. 14. Investing in several types of investments to reduce the risk of financial loss A) Diversification. B) Speculation. C) Return. D) Futures. Show Answer Correct Answer: A) Diversification. 15. In which market can you buy and sell shares of ownership in a company? A) Stock Market. B) Commodity Market. C) Bond Market. D) Currency Market. Show Answer Correct Answer: A) Stock Market. 16. Mortimer transfers $ 100 from his savings account to his checking account. The effect on the money supply will be A) M1 increases, M2 decreases, M3 is unchanged. B) M1, M2, M3 all increase. C) M1 will increase, M2 and M3 are unchanged. D) M1 will increase, M2 will increase, M3 falls. Show Answer Correct Answer: C) M1 will increase, M2 and M3 are unchanged. 17. Pick the one thing money does not have to do A) Money has to last. B) Money should be light enough to carry. C) Money should be in different colors. D) Money should come in many different values. Show Answer Correct Answer: C) Money should be in different colors. 18. Government-produced money backed by a physical commodity such as precious metals A) Commodity. B) Fiat. C) Durability. D) Representative. Show Answer Correct Answer: D) Representative. 19. Sector model showing how businesses & households interact A) Circular Flow Diagram. B) Demand Curve. C) Supply Curve. D) Price Controls. Show Answer Correct Answer: A) Circular Flow Diagram. 20. Total deposits creaed by commercial banks is Rs 12, 000 crore and LRR is 25%. Calculate the amount of initial deposits. A) Rs 6000 crore. B) Rs 4000 crore. C) Rs 5000 crore. D) Rs 3000 crore. Show Answer Correct Answer: D) Rs 3000 crore. ← 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