This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Store of Value: A) Money can maintain value over time. B) Money is a measurement of value. C) Money is accepted in exchange for goods/services. D) None of above. Show Answer Correct Answer: A) Money can maintain value over time. 2. When investors use algorithms to make stock purchases and hold them for a short amount of time A) Day Trading. B) Diversification. C) Federal Reserve Bank. D) Monetary Policy. Show Answer Correct Answer: A) Day Trading. 3. ..... institution is a firm that manages money. A) Mental. B) Financial. C) Social. D) Religious. Show Answer Correct Answer: B) Financial. 4. The following is information about the central bank and its description:A bank with temporary difficulties can seek assistance from the central bank if needed A) The sole issuer of notes and coins. B) The government's bank. C) The bankers' bank. D) Lender of the last resort. Show Answer Correct Answer: D) Lender of the last resort. 5. You realize that many students who come to early morning hockey practice do not get up early enough to eat breakfast. you borrow $ 500 form your parents to start a bagel delivery service to the hockey rink int he early mornings. You are acting as A) A supplier in the capital market. B) An entrpreneur. C) A financial capital investor. D) An intermediary. Show Answer Correct Answer: B) An entrpreneur. 6. How did the United States government make the American public have confidence in the nation's currency in the 1870's? A) The government backed the currency with cotton. B) The government permitted state-chartered banks to issue currency. C) The government established the First Bank of the United States. D) The government adopted the gold standard. Show Answer Correct Answer: D) The government adopted the gold standard. 7. What is the electronic transfer of a payment directly from the payer's bank account to that of the party being payed? A) Direct deposit. B) Mortgage. C) Collateral. D) Deposit. Show Answer Correct Answer: A) Direct deposit. 8. More money supply includes A) All deposits in Bank. B) Double coincidence of wants. C) Unit of account. D) Currency with the banks. Show Answer Correct Answer: A) All deposits in Bank. 9. What is the difference between how simple and compound interests are paid? A) Simple interest:as long as money is in the bank; compound interest:a year at a time. B) Simple interest:once a year; compund interest:quarterly. C) Simple interest:on principal only; compound interest:on both principal and interest. D) They are the same thing. Show Answer Correct Answer: C) Simple interest:on principal only; compound interest:on both principal and interest. 10. How many functions of money are there? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: C) 3. 11. Coins and paper that are used as money; 'legal tender'. A) Money. B) Transfer Payments. C) Currency. D) Liquidity. Show Answer Correct Answer: C) Currency. 12. $ 100 pair of shoes is worth two $ 50 haircuts or four $ 25 tickets to a baseball game. This example represents money as A) A physical commodity. B) A standard of value. C) A medium of exchange. D) A store of value $ 100 pair of shoes is worth two $ 50 haircuts or four $ 25 tickets to a baseball game. This example represents money as. Show Answer Correct Answer: B) A standard of value. 13. Which of the following has contributed to the recent banking crisis? A) Sub-prime mortgages. B) Wildcat banks. C) Bank fraud. D) Greenbacks. Show Answer Correct Answer: A) Sub-prime mortgages. 14. Deposit creation process comes to an end when A) Fresh deposit with bank become zero. B) LRR become zero. C) Money multiplier becomes zero. D) Total reserves equal initial deposits. Show Answer Correct Answer: D) Total reserves equal initial deposits. 15. A form of electronic banking to access accounts with a smart phone. A) DTI. B) PITI. C) Credit report. D) Mobile banking. Show Answer Correct Answer: D) Mobile banking. 16. Money that is valuable because the government says it is. A) Fiat. B) Comodity. C) Representative. D) Billz. Show Answer Correct Answer: A) Fiat. 17. Type of account that pays little to no interest, write checks from this account A) CHECKING. B) SAVINGS. C) CD. D) CHRISTAMAS. Show Answer Correct Answer: A) CHECKING. 18. Anything that serves as a medium of exchange, a unit of account, and a store of value A) Money. B) Unit of Account. C) Goods. D) Services. Show Answer Correct Answer: A) Money. 19. You are a financial advisor whose client is concrenced about losing his investment if a company goes out of business. You advise her to buy A) Income stock. B) Growths tock. C) Common stock. D) Preferred stock. Show Answer Correct Answer: D) Preferred stock. 20. Maria makes a deposit of $ 10, 000 into her Smalltown Bank savings account. Smalltown Bank holds 20% of her deposit, then lends the remaining $ 8, 000 to Ben to buy a new car. This practice of retaining only a portion of deposits on hand is called A) The gold standard. B) Fractional reserve banking. C) The Federal Reserve system. D) Representative money. Show Answer Correct Answer: B) Fractional reserve banking. ← 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