This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The fee charged by a financial institution when you borrow money A) Deposit. B) Withdraw. C) Interest. D) Loan. Show Answer Correct Answer: C) Interest. 2. What are the following ways that Fiscal policy impacts the economy? A) Through changing the discount rate. B) Through taxing and spending. C) By raising or lowering interest rates. D) By printing more money. Show Answer Correct Answer: B) Through taxing and spending. 3. Which of the following are considered a "financial institution? A) Bank. B) Insurance company. C) Savings and loan. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. During recessions, which of the following monetary policies is appropriate? A) Purchase of government securities by the Fed. B) An increase in government spending. C) An increase in transfer payments. D) An increase in the discount rate. E) The selling of government securities by the Fed. Show Answer Correct Answer: A) Purchase of government securities by the Fed. 5. Federal Reserve pays banks for their reserves. A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: D) Interest Rate Paid on Reserves. 6. Which of the following is an example of representative money? A) A fur coat. B) Gold earrings. C) Diamonds. D) An IOU note. Show Answer Correct Answer: D) An IOU note. 7. What does the fractional reserve system mean? A) Banks keep a small portion of deposits & loan the rest. B) Banks use fiat money as well as coins. C) Banks report daily to the Federal Reserve. D) Banks use cash and debit transactions. Show Answer Correct Answer: A) Banks keep a small portion of deposits & loan the rest. 8. When people can take their money with them easily A) Portability. B) Uniformity. C) Durability. D) Divisibility. Show Answer Correct Answer: A) Portability. 9. When the money supply increases, nominal interest rate will A) Increase. B) Decrease. C) Remain the same. D) Shift left. Show Answer Correct Answer: B) Decrease. 10. If the reserve requirement is 8 percent, how much of a $ 100 deposit must be kept by a customer's bank and not loaned to other customers? A) $ 8.00. B) $ 92.00. C) $ 80.00. D) $ 12.00. Show Answer Correct Answer: A) $ 8.00. 11. One of the primary functions of financial institutions is: A) Provide access to capital. B) Create investment portfolios. C) Prepare taxes. D) Offer incentives for investing. Show Answer Correct Answer: A) Provide access to capital. 12. Who has the right of note issue? A) Commercial Bank. B) Central Bank. C) Government. D) Co-operative Bank. Show Answer Correct Answer: B) Central Bank. 13. During the Free Banking Era, bankin in the U.S. was dominated by which of the following? A) Small independent banks with no charters. B) The national bank of the U.S. C) State-chartered banks. D) Savings and loan banks. Show Answer Correct Answer: A) Small independent banks with no charters. 14. All of the following are examples of M2 EXCEPT A) Savings deposits. B) Demand deposits. C) Small denomination time deposits. D) The total of all M1. Show Answer Correct Answer: B) Demand deposits. 15. The common name for U.S. currency is: A) Orange backs. B) Blue backs. C) Green backs. D) Yellow backs. Show Answer Correct Answer: C) Green backs. 16. Antifederalists opposed the national bank because A) They thought national government would do a better job of regulating banks. B) They feared the wealthy would use it to increase their power. C) They wanted ta uniform money suppply throughout the country. D) They wanted to be able to secure loans with foreign countries. Show Answer Correct Answer: B) They feared the wealthy would use it to increase their power. 17. The Federal Reserve has a total of ..... districts. A) 10. B) 11. C) 12. D) 13. Show Answer Correct Answer: C) 12. 18. If the nominal interest raises from 4% to 7% then the A) Real interest rate fell by 4%. B) Expected inflation rose by 3%. C) Expected inflation fell by 3%. D) Real interest rate must rise. Show Answer Correct Answer: B) Expected inflation rose by 3%. 19. ..... is a U.S. government institution that provides insurance on depositor's accounts A) Congress. B) Department of the Interior. C) FDIC. D) Department of Homeland Security. Show Answer Correct Answer: C) FDIC. 20. Money thai is issued by the authority of the government is called- A) Full bodied money. B) Fait money. C) Fuduciary money. D) All the above. Show Answer Correct Answer: B) Fait money. ← 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