This quiz works best with JavaScript enabled. Home > Finance > Money And Banking > Money And Banking – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a way ATM's changed the nature of banking A) Fewer banks were being constructed. B) Customers can access their accounts anytime. C) Fewer in-person transactions. D) Banks allowed to charge more for services. Show Answer Correct Answer: D) Banks allowed to charge more for services. 2. Which of the following financial institutions does NOT have to meet minimum reserve ratios? i. the Fedii. commercial banksiii. credit unions A) Iii only. B) I, ii, and iii. C) I only. D) Ii and iii. E) Ii only. Show Answer Correct Answer: C) I only. 3. Primary role of the Federal Open Market Committee? A) Set mortgage rates for member banks. B) Regulate the volume of money in the economy. C) Make loans for district banks. D) Sell bonds. Show Answer Correct Answer: B) Regulate the volume of money in the economy. 4. He manages to get ..... his monthly salary in a couple of weeks. A) Round. B) Through. C) Over. D) By. Show Answer Correct Answer: B) Through. 5. A document that discloses information about a company's earnings, assets, and liabilities A) Contract. B) Treasury Bond. C) Corporate Bond. D) Prospectus. Show Answer Correct Answer: D) Prospectus. 6. Which type of money has no value of its own but is valuable because it can be exchanged for something else of value? A) Commodity. B) Fiat. C) Specie. D) Representative. Show Answer Correct Answer: D) Representative. 7. What type of policy does the Federal Reserve use to counteract an expansion that is causing high inflation? A) Reduced policy lags. B) Expansionary money policy. C) Fiscal policy. D) Contractionary money policy. Show Answer Correct Answer: D) Contractionary money policy. 8. Which has the potential to be both an advantage and disadvantage of partnership? A) Joint decision making. B) Few regulations. C) Additional resources. D) Specialization. Show Answer Correct Answer: A) Joint decision making. 9. Under the ECOA, a written request for credit made in accordance with the procedures established by a creditor. A) Credit score. B) ARM. C) Disclosures. D) Loan application. Show Answer Correct Answer: D) Loan application. 10. The Feds attempts to sway the level of inflation and real GDP in our economy A) Share. B) Monetary Policy. C) Diversification. D) Fiscal Policy. Show Answer Correct Answer: B) Monetary Policy. 11. If you defaulted, you failed to ..... . A) Apply for financial aid. B) Qualify for health insurance. C) Pay back a loan. D) Give money to charity. Show Answer Correct Answer: C) Pay back a loan. 12. What is the usual reason why citizens trust their country's banknotes? A) They are acceptable for trade and exchange. B) They are backed by gold at the central bank. C) They are convertible into the US$ or Chinese Yuan. D) They are recognisable and in infinite supply. Show Answer Correct Answer: A) They are acceptable for trade and exchange. 13. What are the alternative measures of money supply in India? A) M1. B) M2. C) M3 and M4. D) All of these. Show Answer Correct Answer: D) All of these. 14. 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. 15. The Fed can increase loans by ..... A) Increasing bonds. B) Lower discount rates. C) Raising interest rates. D) None of above. Show Answer Correct Answer: B) Lower discount rates. 16. Which of these can cost you money in large interest payments? A) A debit card. B) A credit card. C) A checking account. D) A savings account. Show Answer Correct Answer: B) A credit card. 17. Being able to save our money to use later, means that money acts as ..... A) Standard of value. B) Medium of exchange. C) Store of value. D) None of above. Show Answer Correct Answer: C) Store of value. 18. Which of the following is not a tools of credit control? A) Managed floting. B) CRR. C) Moral suasions. D) SLR. Show Answer Correct Answer: A) Managed floting. 19. How does a bank make most of its profit on its business? A) By collecting fees on credit card purchases. B) By collecting fees on safety deposit boxes, traveler's checks and certified checks. C) By receiving fees from the government for handling federal and state accounts. D) By paying out less interest on deposits than it earns in interest on loans. Show Answer Correct Answer: D) By paying out less interest on deposits than it earns in interest on loans. 20. SLR requires the commercial bank to build their liquid assets by way of A) Reserve of cash. B) Reserve of gold. C) Resurve of unencumbered secirities. D) All of these. Show Answer Correct Answer: D) All of these. 21. Checking accounts can also be referred to as ..... A) Commodity accounts. B) Pay as you go accounts. C) Demand deposits. D) None of above. Show Answer Correct Answer: C) Demand deposits. 22. The US government began printing paper money during the ..... A) War of 1812. B) Civil War. C) Spanish-American War. D) None of above. Show Answer Correct Answer: B) Civil War. 23. In the early years of the United States, the federalists favored A) The use of banks to limit trade. B) A centralized bankin system. C) State control of their own banks. D) Repeal of the gold standard. Show Answer Correct Answer: B) A centralized bankin system. 24. Where is the federal reserve bank? A) Mumbai, Maharashtra. B) Washington, D.C. C) Stockholm, Sweden. D) Thimphu. Show Answer Correct Answer: B) Washington, D.C. 25. An asset that can be easily converted to cash is ..... A) A withdrawal. B) Overdraft protection. C) An ATM. D) Liquid. Show Answer Correct Answer: D) Liquid. 26. The fee charged by a financial institution when you borrow money A) Interest. B) Deposit. C) Loan. D) Withdraw. Show Answer Correct Answer: A) Interest. 27. What are the following ways that Fiscal policy impacts the economy? A) Through changing the discount rate. B) Through taxing and spending. C) By raising or lowering interest rates. D) By printing more money. Show Answer Correct Answer: B) Through taxing and spending. 28. Which of the following are considered a "financial institution? A) Bank. B) Insurance company. C) Savings and loan. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. During recessions, which of the following monetary policies is appropriate? A) An increase in transfer payments. B) An increase in the discount rate. C) Purchase of government securities by the Fed. D) The selling of government securities by the Fed. E) An increase in government spending. Show Answer Correct Answer: C) Purchase of government securities by the Fed. 30. Federal Reserve pays banks for their reserves. A) Open Market Operations. B) Discount Rate Changes. C) Required Reserve Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: D) Interest Rate Paid on Reserves. ← PreviousNext →Related QuizzesFinance QuizzesMoney And Banking Quiz 1Money And Banking Quiz 2Money And Banking Quiz 3Money And Banking Quiz 4Money And Banking Quiz 5Money And Banking Quiz 6Money And Banking Quiz 7Money And Banking Quiz 8Money And Banking Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books