This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Demand deposits are A) Checking accounts. B) Savings accounts. C) Certificates of deposit. D) Money market accounts. Show Answer Correct Answer: A) Checking accounts. 2. The buying an selling of government securities in financial markets is an example of A) Open market operations. B) Prime rate. C) Discount rate. D) Tight money policy. Show Answer Correct Answer: A) Open market operations. 3. Which one of the following items would be the most liquid (able to be used in an exchange immediately)? A) Pizza. B) Ticket to next week's basketball game. C) Stereo. D) Dollar bill. Show Answer Correct Answer: D) Dollar bill. 4. Savings and loan associations were established to ..... A) Start businesses. B) Pay for college. C) Buy homes. D) None of above. Show Answer Correct Answer: C) Buy homes. 5. Which of these is a function of the Federal Reserve? A) Loaning money. B) Acting as the state government's fiscal agent. C) Supervising international banks. D) Setting reserve requirements. Show Answer Correct Answer: D) Setting reserve requirements. 6. Required reserve ratio determines the A) Required reserves. B) Excess reserves. C) Lending capacity. D) Money multiplier. Show Answer Correct Answer: D) Money multiplier. 7. We need guaranteed financial ..... before we can even start the design work. A) Backing. B) Analysis. C) Agreement. D) Plans. Show Answer Correct Answer: A) Backing. 8. Capital gain A) The difference between the selling price and purchase price that results in a large financial gain for the seller. B) The difference between the selling price and purchase price that is a huge financial loss for the seller. C) A market in which money is lent for periods of one or more years. D) None of above. Show Answer Correct Answer: A) The difference between the selling price and purchase price that results in a large financial gain for the seller. 9. What are 2 characteristics dollars must have to be acceptable in our society? A) Green and gold. B) Portable and durable. C) Old and new. D) Residue from filthy places. Show Answer Correct Answer: B) Portable and durable. 10. In order to encourage investment in the economy, the Central Bank may ..... A) Reduce Cash Reserve Ratio. B) Increase Cash Reserve Ratio. C) Sell Government securities in the open market. D) Increase Bank Rate. Show Answer Correct Answer: A) Reduce Cash Reserve Ratio. 11. When Mary paid the bill, she was given a ..... for her money. A) Stamp. B) Cheque. C) Receipt. D) Ticket. Show Answer Correct Answer: C) Receipt. 12. Bill and Wilma preferred to use ..... A) Cash. B) Credit cards. C) Checks. D) None of above. Show Answer Correct Answer: C) Checks. 13. What does the phrase a medium of exchange mean when describing a function of money? A) Price of an item can be measured in terms of money units. B) Money is generally accepted means of payment. C) You can save money because it keeps its value. D) Borrowers know how much they need to pay back on a loan. Show Answer Correct Answer: B) Money is generally accepted means of payment. 14. The cowrie shells was used as money so widely because it is hard-wearing and long lasting. Which characteristics of money does this describe? A) Divisibility. B) Acceptability. C) Scarcity. D) Durability. Show Answer Correct Answer: D) Durability. 15. Christine ..... her money from the ATM and went on a big shopping spree. A) Withdrew. B) Pulled. C) Ejected. D) Extracted. Show Answer Correct Answer: A) Withdrew. 16. Which of the following is not a way ATM's changed the nature of banking A) Fewer banks were being constructed. B) Customers can access their accounts anytime. C) Fewer in-person transactions. D) Banks allowed to charge more for services. Show Answer Correct Answer: D) Banks allowed to charge more for services. 17. Which of the following financial institutions does NOT have to meet minimum reserve ratios? i. the Fedii. commercial banksiii. credit unions A) Iii only. B) I, ii, and iii. C) I only. D) Ii and iii. E) Ii only. Show Answer Correct Answer: C) I only. 18. Primary role of the Federal Open Market Committee? A) Sell bonds. B) Regulate the volume of money in the economy. C) Set mortgage rates for member banks. D) Make loans for district banks. Show Answer Correct Answer: B) Regulate the volume of money in the economy. 19. He manages to get ..... his monthly salary in a couple of weeks. A) Over. B) Round. C) By. D) Through. Show Answer Correct Answer: D) Through. 20. A document that discloses information about a company's earnings, assets, and liabilities A) Corporate Bond. B) Treasury Bond. C) Prospectus. D) Contract. Show Answer Correct Answer: C) Prospectus. ← 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