Money And Banking Quiz 15 (20 MCQs)

Quiz Instructions

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1. Which type of money has no value of its own but is valuable because it can be exchanged for something else of value?

Correct Answer: B) Representative.

2. What type of policy does the Federal Reserve use to counteract an expansion that is causing high inflation?

Correct Answer: B) Contractionary money policy.

3. Which has the potential to be both an advantage and disadvantage of partnership?

Correct Answer: A) Joint decision making.

4. Under the ECOA, a written request for credit made in accordance with the procedures established by a creditor.

Correct Answer: B) Loan application.

5. The Feds attempts to sway the level of inflation and real GDP in our economy

Correct Answer: A) Monetary Policy.

6. If you defaulted, you failed to ..... .

Correct Answer: D) Pay back a loan.

7. What is the usual reason why citizens trust their country's banknotes?

Correct Answer: A) They are acceptable for trade and exchange.

8. What are the alternative measures of money supply in India?

Correct Answer: D) All of these.

9. Who created the First Bank of the United States?

Correct Answer: D) Alexander Hamilton.

10. The Fed can increase loans by .....

Correct Answer: B) Lower discount rates.

11. Which of these can cost you money in large interest payments?

Correct Answer: B) A credit card.

12. Being able to save our money to use later, means that money acts as .....

Correct Answer: C) Store of value.

13. Which of the following is not a tools of credit control?

Correct Answer: D) Managed floting.

14. How does a bank make most of its profit on its business?

Correct Answer: D) By paying out less interest on deposits than it earns in interest on loans.

15. SLR requires the commercial bank to build their liquid assets by way of

Correct Answer: D) All of these.

16. Checking accounts can also be referred to as .....

Correct Answer: C) Demand deposits.

17. The US government began printing paper money during the .....

Correct Answer: B) Civil War.

18. In the early years of the United States, the federalists favored

Correct Answer: B) A centralized bankin system.

19. Where is the federal reserve bank?

Correct Answer: C) Washington, D.C.

20. An asset that can be easily converted to cash is .....

Correct Answer: B) Liquid.