This quiz works best with JavaScript enabled. Home > Finance > Money And Banking > Money And Banking – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Something that keeps its value when its stored rather than used A) Medium of Exchange. B) Store of Value. C) Unit of Account. D) Portability. Show Answer Correct Answer: B) Store of Value. 2. Representative money gets its value from the fact that A) The government states that it is an acceptable means to pay debts. B) It is backed up by silver or gold. C) It represents objects of value for which it can be exchanged. D) It is a valuable commodity. Show Answer Correct Answer: C) It represents objects of value for which it can be exchanged. 3. Before money we used ..... A) Labor. B) Legal tender. C) Bartering. D) None of above. Show Answer Correct Answer: C) Bartering. 4. Open market operation as an instrument of credit control are performed by A) Central bank of country. B) The commercial bank pof country. C) Both a and b. D) None of these. Show Answer Correct Answer: A) Central bank of country. 5. The loan a bank gives you to purchase a house is called a ..... A) Default Loan. B) Mortgage. C) Building Loan. D) Equity Loan. Show Answer Correct Answer: B) Mortgage. 6. This characteristic of money refers to the ability to carry it with you ..... lightweight and easy to transport. A) Uniformity. B) Portability. C) Acceptability. D) Stability. Show Answer Correct Answer: B) Portability. 7. Money creation by the banking system will decrease if A) Unemployment is low. B) The velocity of money increases. C) Real interest rates are increase. D) People keep cash in their mattresses. Show Answer Correct Answer: D) People keep cash in their mattresses. 8. A recession often leads to ..... A) Higher production. B) Lower profits for businesses. C) Lower unemployment. D) None of above. Show Answer Correct Answer: B) Lower profits for businesses. 9. The most liquid of assets: A) M2. B) Fiat Money. C) M1. D) Currency. Show Answer Correct Answer: C) M1. 10. The process of reducing debt through regular installment payments of principal and interest that will result in the payoff of a loan at its maturity. A) Interest rate. B) Principal. C) Payment. D) Amortization. Show Answer Correct Answer: D) Amortization. 11. Maria borrowed $ 3, 000 at a simple interest rate of 4% per year. How much did she have to repay after 4 years? A) $ 4, 800. B) $ 3, 480. C) $ 7, 800. D) $ 480. Show Answer Correct Answer: B) $ 3, 480. 12. The amount of money that banks charge to each other for loans is the A) Required reserve ratio. B) Money multiplier. C) Discount rate. D) Federal funds rate. Show Answer Correct Answer: D) Federal funds rate. 13. Which of the following functions is/are performed by the Hong Kong Monetary Authority? (1) carrying out monetary policies in Hong Kong(2) issuing banknotes of all face values(3) determining the market interest rate in Hong Kong A) (1) only. B) (1) and (3) only. C) (2) and (3) only. D) (1), (2) and (3). Show Answer Correct Answer: A) (1) only. 14. Which monetary policy action could the Fed implement in order to control inflation? A) Target a lower overnight interbank lending rate. B) Sell government bonds to the public. C) Increase the monetary base. D) Lower the required reserve ratio. E) Lower the discount rate. Show Answer Correct Answer: B) Sell government bonds to the public. 15. Who regulate money supply A) Planning Commission. B) RBI. C) Govt. of India. D) Commercial bank. Show Answer Correct Answer: B) RBI. 16. Which of the following would be the initial effect of an individual making a $ 10, 000 cash deposit in a bank? A) The money supply would rise by $ 10, 000. B) The money supply would fall by $ 10, 000. C) The money supply would not be affected by the deposit. D) The money supply would fall, but by less than the $ 10, 000 deposit. Show Answer Correct Answer: C) The money supply would not be affected by the deposit. 17. What was created by President Abraham Lincoln to combat counterfeiting? A) Secret Service. B) Federal Reserve System. C) Bureau of Engraving and Printing. D) Mutilated Currency Division. Show Answer Correct Answer: A) Secret Service. 18. Credit unions, banks and savings and loan associations are all examples of ..... A) Money houses. B) Financial institutions. C) ATM's. D) None of above. Show Answer Correct Answer: B) Financial institutions. 19. You can easily carry money in a pocket or purse. This reflects what characteristic of money? A) Legal tender. B) Durability. C) Limited supply. D) Portability. Show Answer Correct Answer: D) Portability. 20. The main purpose of the Bank Negara Malaysia is to A) Print money. B) Invest in property. C) Grant loans. D) Accept deposit from public. Show Answer Correct Answer: A) Print money. 21. What is the largest source of income for banks? A) Fees charged to customers for accounts. B) The interest they receive from loans. C) Special accounts such as NOW accounts. D) Money deposited in savings accounts. Show Answer Correct Answer: B) The interest they receive from loans. 22. Which of the following is money in the form of gold or silver coins? A) Fiat money. B) Specie money. C) Commodity money. D) Bitcoin. Show Answer Correct Answer: B) Specie money. 23. Basic function is as an accepted medium of exchange, standard of value, and a store of wealth. Allows all goods and services to be valued in the same objective way:i.e. in relation to a monetary value. A) Money. B) Store of Value. C) Medium of Exchange. D) Barter. Show Answer Correct Answer: A) Money. 24. The largest source of income for banks is A) Interest received from loans. B) Fees charged for checking accounts. C) Payments from the FDIC. D) Money deposited in savings accounts. Show Answer Correct Answer: A) Interest received from loans. 25. Buys and Sells government bonds: A) Open Market Operations. B) Discount Rate Changes. C) Required Reserve Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: A) Open Market Operations. 26. If you deposit funds into a savings account, money is functioning as a A) Unit of Currency. B) Medium of Exchange. C) Store of Value. D) Measure of Value. Show Answer Correct Answer: C) Store of Value. 27. What kind of assets are traded using futures contracts? A) Commodities. B) Stocks. C) Bonds. D) Real estate. Show Answer Correct Answer: A) Commodities. 28. Kim K. deposits $ 200 in her checking account. Later that day Kanye gets a loan for $ 3, 000 from the same bank. What happens to the money supply A) Increases by $ 3000. B) Increases by $ 200. C) Decreases by $ 3000. D) Increases by $ 2800. Show Answer Correct Answer: A) Increases by $ 3000. 29. Which of the following is used to describe money that is in your pocket, your checking account, and your piggy bank? A) Fiat money. B) M2. C) Specie money. D) M1. Show Answer Correct Answer: D) M1. 30. What does EFT stand for? A) Electronic Fund Text. B) Electronic Fund Transfer. C) Electronic Funds Tax. D) Electronic Fund Transfer payment. Show Answer Correct Answer: B) Electronic Fund Transfer. ← 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