This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 36 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Reserve System was established in A) 1799. B) 1913. C) 1863. D) 1881. Show Answer Correct Answer: B) 1913. 2. The most liquid of assets: A) M1. B) M2. C) Currency. D) Fiat Money. Show Answer Correct Answer: A) M1. 3. Knowing the value or price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: B) Unit of account. 4. ..... is a currency that must be accepted for payment by decree of government A) Barter. B) Fiat. C) Legal tender. D) Specie. Show Answer Correct Answer: C) Legal tender. 5. What is a mortgage used to purchase? A) Car. B) Real estate. C) College tuition. D) Business expenses. Show Answer Correct Answer: B) Real estate. 6. Everything else held constant, an increase in interest rates on student loans A) Increases the cost of a college education. B) Reduces the cost of a college education. C) Has no effect on educational costs. D) Increases costs for students with no loans. Show Answer Correct Answer: A) Increases the cost of a college education. 7. You bake a cake for a friend's party, and the friend pays you for it. This makes you a ..... A) Commodity. B) Purchaser. C) Consumer. D) Producer. Show Answer Correct Answer: D) Producer. 8. What are M1 and M2? A) Fiat money. B) Specie. C) Currency. D) Money supplies. Show Answer Correct Answer: D) Money supplies. 9. Objects that have value in themselves as well as their value as a means of exchange are called? A) Currency. B) Commodity money. C) Simple money. D) Customs. Show Answer Correct Answer: B) Commodity money. 10. Who is most likely to be hurt by inflation? A) Someone who borrowed money. B) A retiree on a fixed income. C) A business owner. D) The U.S. government. Show Answer Correct Answer: B) A retiree on a fixed income. 11. Money must be easy to carry. A) Durability. B) Divisibility. C) Store of Value. D) Portability. Show Answer Correct Answer: D) Portability. 12. DEFINE Store of value A) The purchasing power of money can be transported from one time period to another. B) Money is like a yardstick, people use it to compare things they buy and sell. C) Money is accepted by people when they buy goods and services. D) Mr Hoffman HOLLA DOLLA. Show Answer Correct Answer: A) The purchasing power of money can be transported from one time period to another. 13. When was the stock market crash? A) 1930s. B) 1940s. C) 1920s. D) 1910s. Show Answer Correct Answer: C) 1920s. 14. Who are people who wanted a strong central government??? A) Whigs. B) Anti-federalists. C) Federalists. D) Democratic-republican. Show Answer Correct Answer: C) Federalists. 15. A bank can only lend out it's A) Required reserves. B) Total checkable deposits. C) Excess reserves. D) Actual reserves. Show Answer Correct Answer: C) Excess reserves. 16. Describes the state of a market with respect to competition A) Medium of Exchange. B) Services. C) Market Structure. D) Store of Value. Show Answer Correct Answer: C) Market Structure. 17. Money has several defining characteristics. Which one is FALSE? A) Divisible. B) Susceptible to counterfeiting. C) A unit of account. D) Legal tender. Show Answer Correct Answer: B) Susceptible to counterfeiting. 18. For something to be money, the item used must be limited in supply for it to have value A) Acceptable. B) Divisible. C) Scarce. D) Uniform. Show Answer Correct Answer: C) Scarce. 19. Financial markets promote economic efficiency by A) Channeling funds from investors to savers. B) Creating inflation. C) Channeling funds from savers to investors. D) Reducing investment. Show Answer Correct Answer: C) Channeling funds from savers to investors. 20. Borrowing money to make risky investments while hoping to make a large return A) Speculation. B) Day Trading. C) Diversification. D) Share. Show Answer Correct Answer: A) Speculation. ← 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