This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Discretionary spending by the government is A) Set by the Constitution. B) Always in the form of a sales tax. C) A free choice for spending. D) A system to establish a balanced budget. Show Answer Correct Answer: C) A free choice for spending. 2. Which of the following is not counted as part of M1? A) Coins. B) Federal Reserve notes or " paper money". C) Savings deposits. D) Checkable deposits. Show Answer Correct Answer: C) Savings deposits. 3. If a loan is repaid at a commercial bank then A) Commercial bank assets are increased. B) Money is destroyed. C) Commercial bank assets are decreased. D) Money is created. Show Answer Correct Answer: B) Money is destroyed. 4. When people can take their money with them easily A) Portability. B) Uniformity. C) Durability. D) Divisibility. Show Answer Correct Answer: A) Portability. 5. How long do $ 50 bills last? A) 4 years. B) 6 years. C) 9 years. D) 12 years. Show Answer Correct Answer: C) 9 years. 6. Paper currency issued by the Fed that replaced all other types of federal currency is also officially known as A) National paper finance. B) Federal Reserve Notes. C) U.S. minted coins. D) Federal Primary Notes. Show Answer Correct Answer: B) Federal Reserve Notes. 7. When a company "goes public" and sells stock on the public stock exchanges, this is called its ..... A) Initial Public Offering. B) Bond Allocation Series. C) Dividend Payment Layout. D) Growth Stock Fund. Show Answer Correct Answer: A) Initial Public Offering. 8. The exchange rate between Swiss Francs and Chinese Yuan is 1 to 7. Thus, which statement is true? A) 1 Yuan will buy 7 Francs. B) 1 Franc will buy 7 Yuan. C) Francs cannot be traded for Yuan. D) The Swiss economy is 7 times larger than China's. Show Answer Correct Answer: B) 1 Franc will buy 7 Yuan. 9. The total amount of cash the bank has in its vault A) Excess reserves. B) Required reserves. C) Actual reserves. D) Army reserves. Show Answer Correct Answer: C) Actual reserves. 10. Number of federal reserve districts A) 5. B) 10. C) 12. D) 21. Show Answer Correct Answer: C) 12. 11. Professionally managed group of investments bought using a pool money from investors: A) Asset. B) Bond. C) Mutual fund. D) Stock. Show Answer Correct Answer: C) Mutual fund. 12. Money is used to compare the marketvalue of different goods and services.A) Measure of ValueB) Store of ValueC) Medium of Exchange A) A. B) B. C) C. D) None of above. Show Answer Correct Answer: A) A. 13. How did FDR help restore faith in the banks? A) Created the FDIC. B) Paid people to go back to the banks. C) Bought all the banks himself. D) None of above. Show Answer Correct Answer: A) Created the FDIC. 14. Who owns our money? A) We, the people. B) Legal citizens. C) The President. D) Our government. Show Answer Correct Answer: D) Our government. 15. The market for money is like any other, and therefore the price for money-the interest rate-is high when the money supply is low and is low when the money supply A) Stays the same. B) Is large. C) Is low. D) None of the above. Show Answer Correct Answer: B) Is large. 16. The historical period following the fall of Rome is known as the ..... A) Enlightenment. B) Stone Age. C) Dark Ages. D) Golden Age. Show Answer Correct Answer: C) Dark Ages. 17. Which of the following is an example of fiat money? A) Tobacco. B) Hemp. C) Gold. D) A dollar bill. Show Answer Correct Answer: D) A dollar bill. 18. At the grocery store last week, you had to decide whether to buy the 14.5 oz. can of diced tomatoes for $ 1.75 or the 28 oz. can of diced tomatoesfor $ 2.55.A) Measure of ValueB) Store of ValueC) Medium of Exchange A) A. B) B. C) C. D) None of above. Show Answer Correct Answer: A) A. 19. RR = 50%, banks have excess reserves of 100, 000 dollars. What is the money creating potential of the entire banking system? A) 200, 000. B) 100, 000. C) 40, 000. D) 400, 000. Show Answer Correct Answer: A) 200, 000. 20. The Fed determines the amount of cash a bank must keep in its vault by raising or lowering the? A) Reserve ratio (requirement). B) Discount rate. C) Fed funds rate. D) Open market operations. Show Answer Correct Answer: A) Reserve ratio (requirement). ← PreviousNext →Related QuizzesFinance QuizzesMoney Quiz 1Money Quiz 2Money Quiz 3Money Quiz 5Money Quiz 6Money Quiz 7Money Quiz 8Money Quiz 9Money Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books