This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a function of money? A) Acceptability. B) Medium of exchange. C) Portability. D) Relatively scarce. Show Answer Correct Answer: B) Medium of exchange. 2. A liquid asset is one where the asset is easily A) Converted to the medium of exchange. B) Exchanged because of the intrinsic value of commodity money. C) Transported to the bank. D) Circulated throughout the economy in a given year. Show Answer Correct Answer: A) Converted to the medium of exchange. 3. Assets that have liquidity are A) Easy to borrow or lend. B) Easy to convert into silver or gold. C) Easy to turn into cash. D) Difficult to convert to cash. Show Answer Correct Answer: C) Easy to turn into cash. 4. What is a line of credit? A) Lends money to be used anytime. B) Gives you a credit card. C) Helps your credit score. D) None of the above. Show Answer Correct Answer: A) Lends money to be used anytime. 5. The Fed keeps a certain amount of money out of circulation. This is referred to as the ..... A) Reserve requirement. B) Emergency Fund. C) Stockpile. D) Hoard. Show Answer Correct Answer: A) Reserve requirement. 6. We had to get a bank loan when the money finally gave ..... A) In. B) Off. C) Out. D) Over. Show Answer Correct Answer: C) Out. 7. What is included in M2 but not in M1? A) Currency. B) Demand deposits. C) Other checking deposits. D) Savings deposits. Show Answer Correct Answer: D) Savings deposits. 8. Income tax rates is ..... to one's annual income. A) Associated. B) Based. C) Related. D) Dependent. Show Answer Correct Answer: C) Related. 9. This is the interest rate that the FED charges to banks for loans from the the FED. A) Discount Rate. B) Gold Standard. C) Open Market Operations. D) Monetary Policy. Show Answer Correct Answer: A) Discount Rate. 10. The 2008 Financial Crisis was caused by: A) Too much regulation in the US financial sector. B) Not enough money flowing around in the economy. C) Thousands of "sub-prime" loans made by banks looking for quick profit. D) A decrease in taxing by the federal government. Show Answer Correct Answer: C) Thousands of "sub-prime" loans made by banks looking for quick profit. 11. The agency responsible for regulating the money supply in the United States is A) The President of the United States. B) The U.S. Treasury. C) The Secretary of the Treasury. D) The Federal Reserve. Show Answer Correct Answer: D) The Federal Reserve. 12. Out of the following characteristics, money must be effective. Which one directly affects its value? A) Durability. B) Limited supply. C) Uniformity. D) Portability. Show Answer Correct Answer: B) Limited supply. 13. Commercial banks are also called A) Mortgage companies. B) Full-service banks. C) Half-service banks. D) Credit unions. Show Answer Correct Answer: B) Full-service banks. 14. If the Federal Reserve raised the reserve requirement ratio from 8 percent to 10 percent, other things the same this will A) Increase the amount the bank can loan. B) Decrease the amount the bank can loan. C) Not change the amount the bank can loan. D) Decrease the money multiplier and increased the potential growth in the money supply. Show Answer Correct Answer: B) Decrease the amount the bank can loan. 15. A severe economic downturn results in ..... . A) Rising prices. B) Increased aggregate demand. C) Falling prices. D) Decreased government regulation. Show Answer Correct Answer: C) Falling prices. 16. In bartering economies, people trade what they ..... for what they ..... A) Own; buy. B) Buy; sell. C) Want; need. D) Have; need. Show Answer Correct Answer: D) Have; need. 17. Which statement best explains why money was invented? A) Money was invented to facilitate the exchange of goods and services. B) Money was invented to support a barter economy. C) Money was invented to strengthen government power and control. D) Money was invented to lift people out of poverty. Show Answer Correct Answer: A) Money was invented to facilitate the exchange of goods and services. 18. ..... are a paper currency issued by the FED. this is the real name for our bills. A) Specie. B) Federal Reserve Notes. C) Disney bucks. D) Shilling. Show Answer Correct Answer: B) Federal Reserve Notes. 19. Commercial bank create credit money by way of ..... A) Time deposit. B) Treasury Bill. C) Bill of Exchange. D) Demand deposit. Show Answer Correct Answer: D) Demand deposit. 20. What is the place responsible for creating and printing U.S. paper money? A) U.S. Mint. B) Federal Reserve Bank. C) Bureau of Engraving and Printing. D) FDIC. Show Answer Correct Answer: C) Bureau of Engraving and Printing. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books