This quiz works best with JavaScript enabled. Home > Finance > Money And Banking > Money And Banking – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A Store of Value involves ..... A) Spending money when it's available. B) Putting money in the bank. C) Budgeting your monthly income. D) None of above. Show Answer Correct Answer: B) Putting money in the bank. 2. If on receiving a $ 300 deposit, the banks excess reserves increase by $ 255, the current reserve requirement must be: A) 10%. B) 5%. C) 12%. D) 15%. Show Answer Correct Answer: D) 15%. 3. Credit Multiplier is: A) 1/CRR. B) Cash X 1/CRR. C) Cash x CRR. D) None of these. Show Answer Correct Answer: A) 1/CRR. 4. Today most of our money is issued by A) Congress. B) The states. C) The president. D) The Federal Reserve. Show Answer Correct Answer: D) The Federal Reserve. 5. What is Commodity Money? A) Money that has value because the government says so. B) Money that is backed by silver or gold. C) It have value because the item is worth something. D) None of above. Show Answer Correct Answer: C) It have value because the item is worth something. 6. Availability restricted to maintain its value A) Portability. B) Stability. C) Acceptability. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 7. Deposited funds are taken out through checks, debit cards and ATM A) Savings. B) Checking. C) Money market. D) Credit. Show Answer Correct Answer: B) Checking. 8. A financial action taken today that will create financial benefits in the future? A) Buying a Ski Doo. B) Maturity. C) Investment. D) Portfolio. Show Answer Correct Answer: C) Investment. 9. Two unites of the same type of money must be the same in terms of what they will buy, which is the principle of A) Pricing. B) Uniformity. C) Functionality. D) Value. Show Answer Correct Answer: B) Uniformity. 10. How does a pension fund act as an ivestor? A) The fund lends money to those whoa re also investors in it. B) The company invests the money collected from employers and/or employees. C) The company uses money collected from the employees to finance the company. D) The fund uses its own money to invest, not the money that is invested in it. Show Answer Correct Answer: B) The company invests the money collected from employers and/or employees. 11. A system that requires banks to hold reserves equal to some fraction (%) of their checkable deposits. A) Bank Failures. B) Money Multiplier. C) Expansionary Effect on Economy of a Bank Deposit. D) Fractional Reserve Banking System. Show Answer Correct Answer: D) Fractional Reserve Banking System. 12. Which documents should be stored in a safe-deposit box? A) Checkbook statements. B) Copies of current and past budgets. C) Current paycheck stubs. D) Mortgage loan papers. Show Answer Correct Answer: D) Mortgage loan papers. 13. A major result of bank deregulation in the 1980's and 1990s was hundreds of A) Bank mergers. B) Bank failures. C) Large banks splitting up. D) New startup banks. Show Answer Correct Answer: A) Bank mergers. 14. Without money, people would be forced to .....? A) Trade. B) Barter. C) Exchange. D) All the above. Show Answer Correct Answer: D) All the above. 15. The coins and paper bills used as money in a society A) Prices. B) Currency. C) Checks. D) Bond. Show Answer Correct Answer: B) Currency. 16. Who appoints the managers of the Fed? A) The President. B) The First lady. C) The Vice President. D) The people. Show Answer Correct Answer: A) The President. 17. A card you use to withdraw money at an ATM or to pay at a store A) DEBIT CARD/ATM CARD. B) CHECK. C) ID CARD. D) CREDIT CARD. Show Answer Correct Answer: A) DEBIT CARD/ATM CARD. 18. What would happen of a commercial bank decided to hold more than required reserves? A) Increase the interest rate offered by the bank. B) Decrease the amount of potential loans made by the bank. C) Decrease the reserve ratio of the banking system. D) Decrease in checking accounts. Show Answer Correct Answer: B) Decrease the amount of potential loans made by the bank. 19. Which of the following would NOT be included in M1? A) $ 6, 000 buried in your back yard. B) $ 1000 in your checking account. C) $ 20 in your pocket. D) $ 50, 000 in your Roth IRA. Show Answer Correct Answer: D) $ 50, 000 in your Roth IRA. 20. A broad measure of the money supply that examines savings accounts, money markets, and timed deposits. A) D1. B) D2. C) M2. D) M1. Show Answer Correct Answer: C) M2. 21. How does the Federal reserve control the amount of money in circulation? A) By threatening the banks. B) House of Representatives. C) By being faithful. D) By requiring banks to hold a certain amount in the bank. Show Answer Correct Answer: D) By requiring banks to hold a certain amount in the bank. 22. We have arranged special insurance to cover medical ..... in the event of an accident. A) Expenses. B) Money. C) Accounts. D) Prices. Show Answer Correct Answer: A) Expenses. 23. Money is used because: A) It serves as a unit of account. B) Good 'store of value'. C) Makes lending and borrowing easy, compared to using 'things'. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. Objects that have value because the holder can exchange them for something else of value A) Representative Money. B) Commodity Money. C) Currency. D) Fiat Money. Show Answer Correct Answer: A) Representative Money. 25. Which of the following is an example of money as a unit of account? A) Opening a saving account at a bank. B) Checking the price of a camera at several stores before buying it at the lowest price. C) Purchasing a toy for $ 8.99. D) Lending a friend $ 25.00. Show Answer Correct Answer: B) Checking the price of a camera at several stores before buying it at the lowest price. 26. A signature on the back of the check that transfers ownership of the check. A) Endorsement. B) Payment. C) Disclosure. D) Signature card. Show Answer Correct Answer: A) Endorsement. 27. What are the three functions of money? A) Medium of exchange, store of value, unit of account. B) Medium of exchange, store of value, provides barter. C) Store of value, medium of exchange, creates instability. D) None of above. Show Answer Correct Answer: A) Medium of exchange, store of value, unit of account. 28. The Federal Reserve has three tools at their disposal. Which of the following is NOT a tool of monetary policy? A) Changes to foreign policy. B) Changes in reserve requirements. C) Changes in interest rates. D) Open-market operations. Show Answer Correct Answer: A) Changes to foreign policy. 29. A U. S. corporation insuring deposits in the US against banking failure for up to $ 250, 000 A) FDIC. B) IRS. C) The Fed. D) FOMC. Show Answer Correct Answer: A) FDIC. 30. An item that serves as money must be treated as money by all in that economy, i.e. all must agree that iti s a valid form of money A) Acceptable. B) Scarce. C) Durable. D) Divisible. Show Answer Correct Answer: A) Acceptable. ← 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