This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money taken out of your checking account. A) Withdrawal. B) Stop payment. C) Endorsement. D) Outstanding. Show Answer Correct Answer: A) Withdrawal. 2. ..... is a bank that, among other things, can lend money to other banks. A) Congress. B) Central Bank. C) Department of the Interior. D) National Bank. Show Answer Correct Answer: B) Central Bank. 3. What is the main aim of a commercial bank? A) To act as banker to the government. B) Issue bank notes. C) Manage the national debt. D) To make profit. Show Answer Correct Answer: D) To make profit. 4. For something to be money, the item used must be limited in supply for it to have value A) Acceptable. B) Divisible. C) Scarce. D) Uniform. Show Answer Correct Answer: C) Scarce. 5. Why did President Andrew Jackson oppose the Second National Bank of the United States? A) He thought smaller, state-chartered banks were careless. B) He thought it favored the rich and powerful. C) He wanted to repay debts from the Revolutionary War. D) He wanted to issue greenbacks as currency. Show Answer Correct Answer: B) He thought it favored the rich and powerful. 6. Which is not a use of money? A) Medium of exchange. B) A store of value. C) Unit of account. D) To start a fire. Show Answer Correct Answer: D) To start a fire. 7. Money that can be directly used for transaction is A) Near money. B) Broad money. C) M1. D) M2. Show Answer Correct Answer: C) M1. 8. The price paid for borrowed money A) Barter. B) Loan. C) Mortgage. D) Interest. Show Answer Correct Answer: D) Interest. 9. With money it is possible to buy goods on credit. which function of money it shows? A) Store of value. B) Standard of deferred payments. C) Unit of account. D) None of the above. Show Answer Correct Answer: B) Standard of deferred payments. 10. You can easily carry money in a pocket or a purse. This reflects what CHARACTERISTIC of money? A) Durability. B) Legal tender. C) Divisibility. D) Portability. Show Answer Correct Answer: D) Portability. 11. This is the governments ability to control the expansion and/or contraction of the money supply A) Gold Standard. B) Discount Rate. C) Monetary Policy. D) Responsibility of the FED. Show Answer Correct Answer: C) Monetary Policy. 12. A bond has a coupon rate of 5 percent per year, and a par value of $ 2, 000. How much interest will you recieve each year? A) $ 2500. B) $ 200. C) $ 100. D) $ 500. Show Answer Correct Answer: C) $ 100. 13. Demand deposits include A) Saving account deposits and fixed deposits. B) Saving account deposits and current account deposits. C) Current account deposits and fixed deposits. D) All type of deposits. Show Answer Correct Answer: B) Saving account deposits and current account deposits. 14. Which of the following is not part of the Federal Reserve System? A) Council of Economic Advisors. B) Board of Governors. C) Federal Open Market Committee. D) 12 Federal Reserve District Banks. Show Answer Correct Answer: A) Council of Economic Advisors. 15. The largest source of most banks revenue is ..... A) Payroll taxes. B) Savings deposits. C) Interest from loans. D) None of above. Show Answer Correct Answer: C) Interest from loans. 16. What is the other name of money multiplier A) Deposit multiplier. B) Credit multiplier. C) Cash reserve ratio. D) None of these. Show Answer Correct Answer: A) Deposit multiplier. 17. When the Federal Reserve wants to encourage the economy to grow, what does it do with the money supply? A) Increase the money supply. B) Decrease the money supply. C) Sell all of its assets. D) Issue more government securities. Show Answer Correct Answer: A) Increase the money supply. 18. Items used to facilitate barter, keep value, and comparison shop A) Money. B) Currency. C) Principal. D) Portfolio. Show Answer Correct Answer: A) Money. 19. Safe-deposit boxes are: A) A free benefit for accounts with deposits starting at $ 50, 000. B) Safe and can be accessed only by the owner of the box. C) Available at all banks. D) Convenient and accessible at any hour of the day or evening. Show Answer Correct Answer: B) Safe and can be accessed only by the owner of the box. 20. Which of these forms of money are included in M1: A) Checking accounts,. B) Coins,. C) Paper money,. D) Checking accounts, coins, paper money, travelers' checks. Show Answer Correct Answer: D) Checking accounts, coins, paper money, travelers' checks. ← PreviousNext →Related 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 9Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books