This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Reserve System started in A) 1910. B) 1913. C) 1923. D) 1932. Show Answer Correct Answer: B) 1913. 2. To make a profit banks charge ..... interest on the money they loan than the interest they pay on savings accounts. A) Equal. B) Not as much. C) Less. D) More. Show Answer Correct Answer: D) More. 3. Anything used as a medium of exchange A) Interest. B) Money. C) Inflation. D) Taxes. Show Answer Correct Answer: B) Money. 4. Calculate the LRR, if initial deposits of Rs. 200 crore lead to creation of total deposits of 1600 crore . A) 12.5%. B) 10%. C) 15%. D) None of these. Show Answer Correct Answer: A) 12.5%. 5. Which institution perform the activity of credit creation A) COMMERCIAL BANK. B) Central bank. C) Both. D) None of these. Show Answer Correct Answer: A) COMMERCIAL BANK. 6. Financial intermediaries include A) Savings and loan associations, credit unions, and pension funds. B) Stockbrokers, brokerage firms, and speculators. C) All buyers, savers, traders, and investors. D) Financial asset markets and the stock exchange. Show Answer Correct Answer: A) Savings and loan associations, credit unions, and pension funds. 7. Transfer of value has become easier with A) Evolution of money. B) Storage of money. C) Measure of value. D) All of these. Show Answer Correct Answer: A) Evolution of money. 8. A Store of Value involves ..... A) Spending money when it's available. B) Putting money in the bank. C) Budgeting your monthly income. D) None of above. Show Answer Correct Answer: B) Putting money in the bank. 9. If on receiving a $ 300 deposit, the banks excess reserves increase by $ 255, the current reserve requirement must be: A) 15%. B) 10%. C) 5%. D) 12%. Show Answer Correct Answer: A) 15%. 10. Credit Multiplier is: A) 1/CRR. B) Cash X 1/CRR. C) Cash x CRR. D) None of these. Show Answer Correct Answer: A) 1/CRR. 11. Today most of our money is issued by A) The states. B) Congress. C) The president. D) The Federal Reserve. Show Answer Correct Answer: D) The Federal Reserve. 12. What is Commodity Money? A) Money that has value because the government says so. B) Money that is backed by silver or gold. C) It have value because the item is worth something. D) None of above. Show Answer Correct Answer: C) It have value because the item is worth something. 13. Availability restricted to maintain its value A) Scarcity. B) Acceptability. C) Stability. D) Portability. Show Answer Correct Answer: A) Scarcity. 14. Deposited funds are taken out through checks, debit cards and ATM A) Checking. B) Credit. C) Savings. D) Money market. Show Answer Correct Answer: A) Checking. 15. A financial action taken today that will create financial benefits in the future? A) Portfolio. B) Maturity. C) Investment. D) Buying a Ski Doo. Show Answer Correct Answer: C) Investment. 16. Two unites of the same type of money must be the same in terms of what they will buy, which is the principle of A) Functionality. B) Value. C) Pricing. D) Uniformity. Show Answer Correct Answer: D) Uniformity. 17. How does a pension fund act as an ivestor? A) The fund lends money to those whoa re also investors in it. B) The company invests the money collected from employers and/or employees. C) The company uses money collected from the employees to finance the company. D) The fund uses its own money to invest, not the money that is invested in it. Show Answer Correct Answer: B) The company invests the money collected from employers and/or employees. 18. A system that requires banks to hold reserves equal to some fraction (%) of their checkable deposits. A) Expansionary Effect on Economy of a Bank Deposit. B) Fractional Reserve Banking System. C) Bank Failures. D) Money Multiplier. Show Answer Correct Answer: B) Fractional Reserve Banking System. 19. Which documents should be stored in a safe-deposit box? A) Checkbook statements. B) Copies of current and past budgets. C) Current paycheck stubs. D) Mortgage loan papers. Show Answer Correct Answer: D) Mortgage loan papers. 20. A major result of bank deregulation in the 1980's and 1990s was hundreds of A) Bank mergers. B) New startup banks. C) Large banks splitting up. D) Bank failures. Show Answer Correct Answer: A) Bank mergers. ← 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