This quiz works best with JavaScript enabled. Home > Finance > Money And Banking > Money And Banking – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not the function if central bank A) Bankers bank. B) Controller of the money supply. C) Banker to the government. D) Overdraft facility. Show Answer Correct Answer: D) Overdraft facility. 2. A condition that exists when a borrower cannot repay a loan A) Member Bank. B) Liquidity. C) Default. D) Central Bank. Show Answer Correct Answer: C) Default. 3. The following is information about the central bank and its description:As with households, governments need a bank account and the central bank fulfills this function. A) The sole issuer of notes and coins. B) The government's bank. C) The bankers' bank. D) Lender of last resort. Show Answer Correct Answer: B) The government's bank. 4. After the Civil War, the National Banking Acts gave the federal government the power to do all of the following EXCEPT: A) Insure banks against failure. B) Charter banks. C) Require banks to hold adequate gold and silver reserves. D) Issue a single national currency. Show Answer Correct Answer: A) Insure banks against failure. 5. The central banking system of the United States. A) Fractional Reserve Banking. B) Representative Money. C) Federal Reserve System. D) Federal Deposit Insurance Corporation. Show Answer Correct Answer: C) Federal Reserve System. 6. What is fractional reserve banking? A) Only some deposits must be paid on demand. B) Banks lend onnly some of their money toward mortgages. C) People transfer money and pay bills electgronically. D) Banks keep some money on hand and lend out the rest. Show Answer Correct Answer: D) Banks keep some money on hand and lend out the rest. 7. Purchases made with your debit card are usually: A) Deducted immediately from your checking account. B) Deducted from your credit card balance. C) Put on your credit card bill as a cash advance. D) Added to your credit card balance. Show Answer Correct Answer: A) Deducted immediately from your checking account. 8. If governments print too much money and flood the market with currency it causes ..... This is bad for the overall economy because prices will rise quickly and savings will be lost. A) Tariffs. B) Deregulation. C) Inflation. D) More demand for money. Show Answer Correct Answer: C) Inflation. 9. The outstanding balance on a loan, excluding interest and fees. A) Balance. B) Loan. C) Collateral. D) Principal. Show Answer Correct Answer: D) Principal. 10. All of the money available in the US economy A) Money Supply. B) Banks. C) Congress. D) Treasury. Show Answer Correct Answer: A) Money Supply. 11. To monitor/supervise state banks (keep an eye on how much they loan people) is the main responsibility of the A) FDIC. B) FCC. C) FDA. D) FED. Show Answer Correct Answer: D) FED. 12. The most commonly used currency in the world is the ..... A) Dollar. B) Euro. C) Yen. D) None of above. Show Answer Correct Answer: A) Dollar. 13. A certain % of checkable deposits that banks keep on reserve. A) Reserve Requirement. B) Savings. C) Excess Reserves. D) Fractional Reserve. Show Answer Correct Answer: A) Reserve Requirement. 14. Checks are not money because they A) Are just instruments to transfer money between banks. B) Are not guaranteed by banks. C) Are not always accepted when trying to purchase goods or services. D) Can bounce when there are not enough funds to cash them. E) Are not issued by the government. Show Answer Correct Answer: A) Are just instruments to transfer money between banks. 15. When investors use algorithms to make stock purchases and hold them for a short amount of time A) Federal Reserve Bank. B) Monetary Policy. C) Diversification. D) Day Trading. Show Answer Correct Answer: D) Day Trading. 16. ..... institution is a firm that manages money. A) Mental. B) Social. C) Financial. D) Religious. Show Answer Correct Answer: C) Financial. 17. The following is information about the central bank and its description:A bank with temporary difficulties can seek assistance from the central bank if needed A) The sole issuer of notes and coins. B) The government's bank. C) The bankers' bank. D) Lender of the last resort. Show Answer Correct Answer: D) Lender of the last resort. 18. You realize that many students who come to early morning hockey practice do not get up early enough to eat breakfast. you borrow $ 500 form your parents to start a bagel delivery service to the hockey rink int he early mornings. You are acting as A) An intermediary. B) A financial capital investor. C) An entrpreneur. D) A supplier in the capital market. Show Answer Correct Answer: C) An entrpreneur. 19. How did the United States government make the American public have confidence in the nation's currency in the 1870's? A) The government backed the currency with cotton. B) The government permitted state-chartered banks to issue currency. C) The government established the First Bank of the United States. D) The government adopted the gold standard. Show Answer Correct Answer: D) The government adopted the gold standard. 20. What is the electronic transfer of a payment directly from the payer's bank account to that of the party being payed? A) Collateral. B) Mortgage. C) Direct deposit. D) Deposit. Show Answer Correct Answer: C) Direct deposit. 21. More money supply includes A) All deposits in Bank. B) Double coincidence of wants. C) Unit of account. D) Currency with the banks. Show Answer Correct Answer: A) All deposits in Bank. 22. What is the difference between how simple and compound interests are paid? A) Simple interest:as long as money is in the bank; compound interest:a year at a time. B) Simple interest:once a year; compund interest:quarterly. C) Simple interest:on principal only; compound interest:on both principal and interest. D) They are the same thing. Show Answer Correct Answer: C) Simple interest:on principal only; compound interest:on both principal and interest. 23. How many functions of money are there? A) 3. B) 2. C) 1. D) 4. Show Answer Correct Answer: A) 3. 24. Coins and paper that are used as money; 'legal tender'. A) Transfer Payments. B) Currency. C) Liquidity. D) Money. Show Answer Correct Answer: B) Currency. 25. $ 100 pair of shoes is worth two $ 50 haircuts or four $ 25 tickets to a baseball game. This example represents money as A) A physical commodity. B) A standard of value. C) A medium of exchange. D) A store of value $ 100 pair of shoes is worth two $ 50 haircuts or four $ 25 tickets to a baseball game. This example represents money as. Show Answer Correct Answer: B) A standard of value. 26. Which of the following has contributed to the recent banking crisis? A) Wildcat banks. B) Bank fraud. C) Greenbacks. D) Sub-prime mortgages. Show Answer Correct Answer: D) Sub-prime mortgages. 27. Deposit creation process comes to an end when A) LRR become zero. B) Total reserves equal initial deposits. C) Fresh deposit with bank become zero. D) Money multiplier becomes zero. Show Answer Correct Answer: B) Total reserves equal initial deposits. 28. A form of electronic banking to access accounts with a smart phone. A) Credit report. B) PITI. C) DTI. D) Mobile banking. Show Answer Correct Answer: D) Mobile banking. 29. Money that is valuable because the government says it is. A) Billz. B) Fiat. C) Comodity. D) Representative. Show Answer Correct Answer: B) Fiat. 30. Type of account that pays little to no interest, write checks from this account A) CHRISTAMAS. B) CD. C) SAVINGS. D) CHECKING. Show Answer Correct Answer: D) CHECKING. ← 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