This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The amount we take out as a loan A) Principal. B) Interest. C) Portfolio. D) Stock. Show Answer Correct Answer: A) Principal. 2. The key word "save" describes 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. 3. High powered money consists of: A) Currency and coins held by the public. B) Currency and demand deposits. C) Currency, cash reserves with banks and demand deposits. D) Currency held by the public and cash reserves with banks. Show Answer Correct Answer: D) Currency held by the public and cash reserves with banks. 4. Why are funds in checking accounts called demand deposits? A) They are available whenever the depositor demands them by writing a check. B) They are not liquid. C) They are usually in great demand. D) They are held without interest by the bank. Show Answer Correct Answer: A) They are available whenever the depositor demands them by writing a check. 5. Currently, what is U.S. money backed by? A) Frankincense. B) Gold. C) Silver. D) Trust that it is worth something. Show Answer Correct Answer: D) Trust that it is worth something. 6. When Daniel goes to the mall and looks over the goods and services offered for sale he understands the value of each item because it is communicated on the price tag. Here money is being used as a A) Store of Value. B) Medium of Exchange. C) Standard of Value. D) Change Maker. Show Answer Correct Answer: C) Standard of Value. 7. Today, governments that want to spend more than they have ..... A) Can only get it by borrowing. B) Can only get it by taxing their citizens. C) Can print more money. D) Are out of luck. Show Answer Correct Answer: C) Can print more money. 8. Medium of exchange: A) Money is accepted in exchange for goods/services. B) Money is a measurement of value. C) Money can maintain value over time. D) None of above. Show Answer Correct Answer: A) Money is accepted in exchange for goods/services. 9. This is money that has another useful purpose. A) Fiat. B) Commodity. C) Debt. D) Securities. Show Answer Correct Answer: B) Commodity. 10. Amount held bank: A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: B) Required Reserve Rate Changes. 11. RR = 10%, banking system has 500 dollars in excess reserves, what is the money creating potential of the entire banking system? A) 7, 500. B) 2.500. C) 5, 000. D) 10, 000. Show Answer Correct Answer: C) 5, 000. 12. For a commodity to function effectively as money it must be A) Easily standardized, making it easy to ascertain its value. B) Difficult to make change. C) Deteriorate quickly so that its supply does not become too large. D) Hard to carry around. Show Answer Correct Answer: A) Easily standardized, making it easy to ascertain its value. 13. What is the measure of value? A) Knowing how much something cost. B) Measuring the price with a ruler. C) Money serves as a measuring stick used to express the worth of something. D) The feature of money that allows tmr one to have pass between earning income. Show Answer Correct Answer: C) Money serves as a measuring stick used to express the worth of something. 14. A stock that signifies partial ownership of a company A) Share. B) Return. C) Portfolio. D) Day Trading. Show Answer Correct Answer: A) Share. 15. The price of borrowed money is the definition of ..... A) Interest rates. B) Inflation. C) Exchange rates. D) Loans. Show Answer Correct Answer: A) Interest rates. 16. The Federal Reserve can increase ....., which makes banks more selective when loaning out money A) Reserve Requirements. B) Percentage/Earnings Ratios. C) Dividends. D) Blue Chip Stocks. Show Answer Correct Answer: A) Reserve Requirements. 17. U.S. money today has value because the government has ordered it as acceptable means to pay debts. A) Representative money. B) Currency. C) Commodity money. D) Fiat money. Show Answer Correct Answer: D) Fiat money. 18. The money that banks are allowed to loan out to individuals, businesses and other banks is called A) Required Reserves. B) Excess Reserves. C) Reserve Requirement. D) Cash Money. Show Answer Correct Answer: B) Excess Reserves. 19. The definition of Commodity Money can best be described as ..... A) Paper money distributed by the U.S. government. B) Object that has intrinsic value in itself that also serves as money. C) Money in the form of cash and coin. D) Printed money from State banks. Show Answer Correct Answer: B) Object that has intrinsic value in itself that also serves as money. 20. Who created the First Bank of the United States? A) George Washington. B) Andrew Jackson. C) Thomas Jefferson. D) Alexander Hamilton. Show Answer Correct Answer: D) Alexander Hamilton. ← PreviousNext →Related QuizzesFinance QuizzesMoney Quiz 1Money Quiz 2Money Quiz 3Money Quiz 4Money Quiz 6Money Quiz 7Money Quiz 8Money Quiz 9Money Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books