This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. After my business failed, I was declared ..... by the court. A) Profitless. B) Bankrupt. C) Insignificant. D) Uneconomical. Show Answer Correct Answer: B) Bankrupt. 2. When Mr. Moore gets his paycheck, he knows he doesn't have to spend it all at once because money is A) Standard of Value. B) Medium of Exchange. C) Store of Value. D) Representative money. Show Answer Correct Answer: C) Store of Value. 3. People can trade in goods and services which feature of money does this describe? A) Unit of account. B) Standard of deferred payments. C) Medium of exchange. D) Store of value. Show Answer Correct Answer: C) Medium of exchange. 4. The direct exchange of one set of goods or services for another A) Store of Value. B) Currency Exchange. C) Medium of Exchange. D) Barter System. Show Answer Correct Answer: D) Barter System. 5. What services do banks provide? A) Store money. B) Customers can earn money. C) Borrow money. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Kanye has $ 12, 000 in cash and he deposits it in Kardashian National Bank. How much does M1 change? A) $ 12, 000 x the monetary multiplier. B) $ 12, 000. C) It doesn't change, cash and checks are both M1. D) $ 12, 000 less the required reserves. Show Answer Correct Answer: C) It doesn't change, cash and checks are both M1. 7. The earliest financial-services company was formed by the ..... A) Knights Templars. B) Egyptians. C) Greeks. D) None of above. Show Answer Correct Answer: A) Knights Templars. 8. Something that keeps its value when its stored rather than used A) Store of Value. B) Unit of Account. C) Medium of Exchange. D) Portability. Show Answer Correct Answer: A) Store of Value. 9. Representative money gets its value from the fact that A) It represents objects of value for which it can be exchanged. B) It is backed up by silver or gold. C) The government states that it is an acceptable means to pay debts. D) It is a valuable commodity. Show Answer Correct Answer: A) It represents objects of value for which it can be exchanged. 10. Before money we used ..... A) Labor. B) Legal tender. C) Bartering. D) None of above. Show Answer Correct Answer: C) Bartering. 11. Open market operation as an instrument of credit control are performed by A) Central bank of country. B) The commercial bank pof country. C) Both a and b. D) None of these. Show Answer Correct Answer: A) Central bank of country. 12. The loan a bank gives you to purchase a house is called a ..... A) Mortgage. B) Default Loan. C) Equity Loan. D) Building Loan. Show Answer Correct Answer: A) Mortgage. 13. This characteristic of money refers to the ability to carry it with you ..... lightweight and easy to transport. A) Portability. B) Uniformity. C) Acceptability. D) Stability. Show Answer Correct Answer: A) Portability. 14. Money creation by the banking system will decrease if A) The velocity of money increases. B) Real interest rates are increase. C) Unemployment is low. D) People keep cash in their mattresses. Show Answer Correct Answer: D) People keep cash in their mattresses. 15. A recession often leads to ..... A) Higher production. B) Lower profits for businesses. C) Lower unemployment. D) None of above. Show Answer Correct Answer: B) Lower profits for businesses. 16. The most liquid of assets: A) M1. B) M2. C) Currency. D) Fiat Money. Show Answer Correct Answer: A) M1. 17. The process of reducing debt through regular installment payments of principal and interest that will result in the payoff of a loan at its maturity. A) Payment. B) Amortization. C) Interest rate. D) Principal. Show Answer Correct Answer: B) Amortization. 18. Maria borrowed $ 3, 000 at a simple interest rate of 4% per year. How much did she have to repay after 4 years? A) $ 480. B) $ 3, 480. C) $ 4, 800. D) $ 7, 800. Show Answer Correct Answer: B) $ 3, 480. 19. The amount of money that banks charge to each other for loans is the A) Discount rate. B) Required reserve ratio. C) Federal funds rate. D) Money multiplier. Show Answer Correct Answer: C) Federal funds rate. 20. Which of the following functions is/are performed by the Hong Kong Monetary Authority? (1) carrying out monetary policies in Hong Kong(2) issuing banknotes of all face values(3) determining the market interest rate in Hong Kong A) (1) only. B) (1) and (3) only. C) (2) and (3) only. D) (1), (2) and (3). Show Answer Correct Answer: A) (1) only. ← 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