This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In India there are four alternative measures of money supply:M1, M2, M3, and M4 of these M1= A) Currency with people. B) Currency with people+ Demand deposdit. C) Currency with people+ Demand deposdit+ Other deposit with RBI. D) None of these. Show Answer Correct Answer: C) Currency with people+ Demand deposdit+ Other deposit with RBI. 2. A collection of funds from many individuals and invested in stocks, bonds, and other assets A) Mutual Fund. B) Stock. C) Stock Split. D) Diversification. Show Answer Correct Answer: A) Mutual Fund. 3. When one share is divided into half or more (because the price has increased and deterred investors) A) Stock Split. B) Return. C) Principal. D) Interest. Show Answer Correct Answer: A) Stock Split. 4. The sale of an investment for less than its purchase price A) Options. B) Capital Gain. C) Maturity. D) Capital Loss. Show Answer Correct Answer: D) Capital Loss. 5. As his aunt's only beneficiary, he came ..... a fortune on her death. A) Upon. B) Across. C) Into. D) Up against. Show Answer Correct Answer: C) Into. 6. The current chairperson of the Federal Reserve is: A) Jerome Powell. B) Alan Greenspan. C) Ben Bernanke. D) Janet Yellen. Show Answer Correct Answer: A) Jerome Powell. 7. The currency created by the central bank is a part of A) High powered money. B) Money. C) Bank money. D) Money supply. Show Answer Correct Answer: A) High powered money. 8. To trade goods or services without the use of money is ..... A) Bartering. B) Trading. C) Economy. D) Debt. Show Answer Correct Answer: A) Bartering. 9. A U.S. government agency that provides insurance on customer's deposits in a bank account. A) Federal Reserve System. B) Credit Union. C) Federal Deposit Insurance Corporation. D) Fractional Reserve Banking. Show Answer Correct Answer: C) Federal Deposit Insurance Corporation. 10. Money that has value because the government has ordered that it is an acceptable means to pay debts A) Currency. B) Representative Money. C) Fiat Money. D) Commodity Money. Show Answer Correct Answer: C) Fiat Money. 11. ..... is the ratio of deposits which bank keep with the central bank A) CRR. B) SLR. C) Bank rate. D) Reverse repo rate. Show Answer Correct Answer: A) CRR. 12. A demand deposit account subject to withdrawal of funds electronically or by check A) Savings account. B) Mortgage. C) Loan. D) Checking account. Show Answer Correct Answer: D) Checking account. 13. Which of the following is a commonly accepted definition of money? A) Any good which is commonly uiesd as a store of value. B) Any good which is exchanged foe gold at a fixed rate. C) Any good which is acceptable to a bank. D) Any good which is commonly accepted as medium of exchange. Show Answer Correct Answer: D) Any good which is commonly accepted as medium of exchange. 14. Term deposits are those A) Against which no cheque can be issued. B) Against which no interest is paid to the depositor. C) Which are fixed deposits. D) Both (a) and (c). Show Answer Correct Answer: D) Both (a) and (c). 15. When the Fed sells bonds, their action A) Increases the money supply. B) Decreases the money supply. C) Increases excess reserves in the banking system. D) Reduces interest rates. Show Answer Correct Answer: B) Decreases the money supply. 16. A demand deposit is better than a time deposit in serving the ..... function of money.(1) medium of exchange(2) unit of account(3) store of value A) (1) only. B) (1) and (2) only. C) (2) and (3) only. D) (1), (2) and (3). Show Answer Correct Answer: A) (1) only. 17. A bank is an institution A) Owned by merchants. B) That collects taxes for the government. C) For receiving, keeping, and lending money. D) That regulates interstate commerce. Show Answer Correct Answer: C) For receiving, keeping, and lending money. 18. When you pay for a new CD with a debit card, you are using the electronic form of a payment by (ya'll probably never even bought a physical CD. These days it is all streamed) A) Money order. B) Credit card. C) Personal check. D) Cashier's check. Show Answer Correct Answer: C) Personal check. 19. Purchasing power remains constant. A) Scarcity. B) Acceptability. C) Stability. D) Portability. Show Answer Correct Answer: C) Stability. 20. A woman borrows money to buy a house. If she does not repay the money the bank loaned her, the bank will take the house. What is the house? A) Interest. B) Collateral. C) Budget. D) Financial institution. Show Answer Correct Answer: B) Collateral. ← PreviousNext →Related QuizzesMoney And Banking Quiz 1Money 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 10Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books