This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A monetary system in which paper money and coins are equal to the value of a certain amount of gold A) Money Supply. B) Gold Standard. C) National Bank. D) Bank. Show Answer Correct Answer: B) Gold Standard. 2. According to monetary neutrality if the price level raises by 5 and the value of of $ 200 game system was equal to 10 prime steaks, how many prime steaks would be required to be equal to the $ 1000 price of the game system? A) 2. B) 10. C) 25. D) 50. Show Answer Correct Answer: B) 10. 3. The ability to use an asset as a medium of exchange describes its ..... A) Portability. B) Scarcity. C) Durability. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 4. Which of the following is a type of banking service that allows your principal to grow through the adding in of interest? A) Basic checking account. B) Savings account. C) Charge account. D) Credit account. Show Answer Correct Answer: B) Savings account. 5. The ability of money to be accepted by all parties in a transaction A) Medium of Exchange. B) Measure of Value. C) Store of Value. D) Portability. Show Answer Correct Answer: A) Medium of Exchange. 6. Banks use savings account deposits to: A) Make their services and products attractive for new depositors. B) Pay for employee special projects. C) Give loans to consumers and businesses. D) Improve the quality of life in low-income communities. Show Answer Correct Answer: C) Give loans to consumers and businesses. 7. This is a system where a reserve, or part, of a deposit needs to be kept on hand. A) Aggregate Measures. B) Fractional reserve system. C) Multiplier effect. D) Primary reserve. Show Answer Correct Answer: B) Fractional reserve system. 8. An economy was a barter economy. After using money in exchange, we can expect that(1) there will be a common measure of value of goods and services.(2) there will be a lower degree of specialisation in production.(3) transaction costs will decrease. A) (1) and (2) only. B) (1) and (3) only. C) (2) and (3) only. D) (1), (2) and (3). Show Answer Correct Answer: B) (1) and (3) only. 9. Money allows the comparison of different values and this function is referred to as ..... A) Medium of exchange. B) Store of value. C) Measure of value. D) Standard of deferred payment. Show Answer Correct Answer: C) Measure of value. 10. Hiram Wakefield began a bank in ..... A) Colorado. B) North Carolina. C) California. D) None of above. Show Answer Correct Answer: A) Colorado. 11. The currency created by the central bank is called A) High powered money. B) Money. C) Bank money. D) Money supply. Show Answer Correct Answer: A) High powered money. 12. Which describes a bear market? A) Stocks are staying the same. B) Some stocks are going up and some are going down. C) Most stock prices are rising. D) Most stock prices are falling. Show Answer Correct Answer: D) Most stock prices are falling. 13. Which of these is an example of a discretionary fiscal measure? A) State unemployment programs. B) Social Security. C) Automatic stabilizers. D) Tax cuts. Show Answer Correct Answer: D) Tax cuts. 14. What is the primary way banks earn a profit? A) Charging fees for services. B) Borrowing money from the Fed. C) Selling Piggy Banks. D) Collecting interest on loans made to customers. Show Answer Correct Answer: D) Collecting interest on loans made to customers. 15. Commodity money can only work in A) A financial industry. B) A complex economic system. C) A highly regulated system. D) A simple economic system. Show Answer Correct Answer: D) A simple economic system. 16. This type of card allows you to withdraw money directly out of your checking account to pay for things ..... A) Credit Card. B) Debit Card. C) Gift Card. D) E-Card. Show Answer Correct Answer: B) Debit Card. 17. The central bank of the United States is the: A) Federal Reserve Banking System. B) Comptroller's Bank. C) United States National Bank. D) U.S. Treasury Bank. Show Answer Correct Answer: A) Federal Reserve Banking System. 18. Which of the following is the apex bank of India? A) SBI. B) RBI. C) HDFC. D) PNB. Show Answer Correct Answer: B) RBI. 19. Money must be able to withstand the wear and tear of many people using it. A) Divisibility. B) Durability. C) Limited Supply. D) Acceptability. Show Answer Correct Answer: B) Durability. 20. If the money supply increases from $ 4000 to $ 6000, and the real output of video games is 50. What will happen to the price level? A) It stays the same. B) It will decrease to $ 80. C) It will increase to $ 110. D) It will increase to $ 120. Show Answer Correct Answer: D) It will increase to $ 120. ← 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