This quiz works best with JavaScript enabled. Home > Finance > General > Money – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main function of the Federal Reserve System? A) Ensure a healthy and stable economy. B) Create a strong government. C) Encourage fair trade practices. D) None of above. Show Answer Correct Answer: A) Ensure a healthy and stable economy. 2. What is the name of our nation's central bank? A) The Federal Reserve. B) The United States National Bank. C) The National Bank of the United States. D) Bank of America. Show Answer Correct Answer: A) The Federal Reserve. 3. Where is a good place to save money? A) Bank. B) Wallet. C) Sock drawer. D) Under a mattress. Show Answer Correct Answer: A) Bank. 4. If the Fed set the reserve requirement at 20%, the money multiplier would be A) 5. B) 4. C) 10. D) Indeterminant. Show Answer Correct Answer: A) 5. 5. Which of the characteristics of money can be defined as "Consistent or Identical" ? A) Durability. B) Divisibility. C) Uniformity. D) Portability. Show Answer Correct Answer: C) Uniformity. 6. Amazon Prime has one-click ordering, where you can purchase and ship almost anything with one click. This lowers transactions costs, making it much easier to buy and sell goods and services. A) Medium of exchange. B) Unit of account. C) Store of value. D) None of above. Show Answer Correct Answer: A) Medium of exchange. 7. Barter system is now replaced by A) Banking system. B) International system. C) Monetary system. D) Financial system. Show Answer Correct Answer: C) Monetary system. 8. A measurement used to compare different credit options. It includes the interest rate and any fees to illustrate the total cost of credit expressed as a yearly rate. A) Annual Percentage Rate (APR). B) Bad Credit. C) Charge Card. D) Co-signer. Show Answer Correct Answer: A) Annual Percentage Rate (APR). 9. What are 2 characteristics dollars must have to be acceptable in our society? A) Green and gold. B) Portable and durable. C) Old and new. D) Residue from filthy places. Show Answer Correct Answer: B) Portable and durable. 10. If the reserve requirement is 8 percent, how much of a $ 100 deposit must be kept by a customer's bank and not loaned to other customers? A) $ 8.00. B) $ 92.00. C) $ 80.00. D) $ 12.00. Show Answer Correct Answer: A) $ 8.00. 11. In the terminology of economics and money demand, the terms M1 and M2 are also known as: A) Short money. B) Long money. C) Broad money. D) Narrow money. Show Answer Correct Answer: D) Narrow money. 12. Chunks of metal used by traders around 560 BC were called ..... A) Cash. B) Vouchers. C) Pennies. D) Electrum. Show Answer Correct Answer: D) Electrum. 13. The Federal Reserve ..... A) Regulates the amount of money. B) Supervises Banks. C) Provides Financial Services. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. When money is used to acquire goods and services, it is functioning as a A) Medium of exchange. B) Store of value. C) Standard of account. D) Equation of value. Show Answer Correct Answer: A) Medium of exchange. 15. According to the laws of supply and demand, when will companies produce more of a product? A) When the price people will pay for it goes down. B) When demand decreases. C) When they can sell it for a higher price. D) When the economy turns downward. Show Answer Correct Answer: C) When they can sell it for a higher price. 16. Money has to be accepted by everyone, which means A) Long lasting. B) Limited in supply. C) Easy to carry. D) Everyone agrees upon it. Show Answer Correct Answer: D) Everyone agrees upon it. 17. The interest rate charged to member banks for borrowing reserves from the Fed. A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: C) Discount Rate Changes. 18. The circular flow model of a market economy shows A) How profits are made. B) What inputs are required for what outputs. C) How many firms can support the needs of how many households. D) The interactions between households and firms in the free market. Show Answer Correct Answer: D) The interactions between households and firms in the free market. 19. As an investor if you wanted to diversify your retirement portfolio which financial product should you select . A) Stock. B) Mutual Fund. C) Bond. D) Bitcoin. Show Answer Correct Answer: B) Mutual Fund. 20. Two units of the same type of money must be the same in terms of what they will buy. A) Durability. B) Limited Supply. C) Portability. D) Uniformity. Show Answer Correct Answer: D) Uniformity. ← PreviousNext →Related QuizzesFinance QuizzesMoney Quiz 1Money Quiz 2Money Quiz 3Money Quiz 4Money Quiz 5Money Quiz 7Money Quiz 8Money Quiz 9Money Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books