This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which monetary policy action could the Fed implement in order to control inflation? A) Target a lower overnight interbank lending rate. B) Sell government bonds to the public. C) Lower the discount rate. D) Lower the required reserve ratio. E) Increase the monetary base. Show Answer Correct Answer: B) Sell government bonds to the public. 2. Who regulate money supply A) Govt. of India. B) RBI. C) Planning Commission. D) Commercial bank. Show Answer Correct Answer: B) RBI. 3. Which of the following would be the initial effect of an individual making a $ 10, 000 cash deposit in a bank? A) The money supply would rise by $ 10, 000. B) The money supply would fall by $ 10, 000. C) The money supply would not be affected by the deposit. D) The money supply would fall, but by less than the $ 10, 000 deposit. Show Answer Correct Answer: C) The money supply would not be affected by the deposit. 4. What was created by President Abraham Lincoln to combat counterfeiting? A) Secret Service. B) Federal Reserve System. C) Bureau of Engraving and Printing. D) Mutilated Currency Division. Show Answer Correct Answer: A) Secret Service. 5. Credit unions, banks and savings and loan associations are all examples of ..... A) Money houses. B) Financial institutions. C) ATM's. D) None of above. Show Answer Correct Answer: B) Financial institutions. 6. You can easily carry money in a pocket or purse. This reflects what characteristic of money? A) Portability. B) Durability. C) Limited supply. D) Legal tender. Show Answer Correct Answer: A) Portability. 7. The main purpose of the Bank Negara Malaysia is to A) Invest in property. B) Print money. C) Grant loans. D) Accept deposit from public. Show Answer Correct Answer: B) Print money. 8. What is the largest source of income for banks? A) The interest they receive from loans. B) Fees charged to customers for accounts. C) Money deposited in savings accounts. D) Special accounts such as NOW accounts. Show Answer Correct Answer: A) The interest they receive from loans. 9. Which of the following is money in the form of gold or silver coins? A) Fiat money. B) Commodity money. C) Specie money. D) Bitcoin. Show Answer Correct Answer: C) Specie money. 10. Basic function is as an accepted medium of exchange, standard of value, and a store of wealth. Allows all goods and services to be valued in the same objective way:i.e. in relation to a monetary value. A) Medium of Exchange. B) Barter. C) Money. D) Store of Value. Show Answer Correct Answer: C) Money. 11. The largest source of income for banks is A) Interest received from loans. B) Fees charged for checking accounts. C) Money deposited in savings accounts. D) Payments from the FDIC. Show Answer Correct Answer: A) Interest received from loans. 12. Buys and Sells government bonds: A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: A) Open Market Operations. 13. If you deposit funds into a savings account, money is functioning as a A) Medium of Exchange. B) Measure of Value. C) Unit of Currency. D) Store of Value. Show Answer Correct Answer: D) Store of Value. 14. What kind of assets are traded using futures contracts? A) Stocks. B) Bonds. C) Commodities. D) Real estate. Show Answer Correct Answer: C) Commodities. 15. Kim K. deposits $ 200 in her checking account. Later that day Kanye gets a loan for $ 3, 000 from the same bank. What happens to the money supply A) Increases by $ 200. B) Increases by $ 2800. C) Decreases by $ 3000. D) Increases by $ 3000. Show Answer Correct Answer: D) Increases by $ 3000. 16. Which of the following is used to describe money that is in your pocket, your checking account, and your piggy bank? A) Specie money. B) Fiat money. C) M1. D) M2. Show Answer Correct Answer: C) M1. 17. What does EFT stand for? A) Electronic Fund Transfer. B) Electronic Fund Transfer payment. C) Electronic Fund Text. D) Electronic Funds Tax. Show Answer Correct Answer: A) Electronic Fund Transfer. 18. Coins and paper money in people's pockets are ..... A) Included in both M1 and M2. B) Included in M2 but not in M1. C) Included in M1 but not in M2. D) Excluded from M1 and M2. Show Answer Correct Answer: A) Included in both M1 and M2. 19. Who has to confirm after the President appoints the managers of the fed? A) The Supreme Court Justice. B) The Senate. C) No one has to confirm. D) The people. Show Answer Correct Answer: B) The Senate. 20. The standard of value and a means of exchange or payment is A) Food. B) Financial. C) Money. D) Candy. Show Answer Correct Answer: C) 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