Money And Banking Quiz 26 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Without money, people would be forced to .....?

Correct Answer: D) All the above.

2. The coins and paper bills used as money in a society

Correct Answer: B) Currency.

3. Who appoints the managers of the Fed?

Correct Answer: D) The President.

4. A card you use to withdraw money at an ATM or to pay at a store

Correct Answer: C) DEBIT CARD/ATM CARD.

5. What would happen of a commercial bank decided to hold more than required reserves?

Correct Answer: B) Decrease the amount of potential loans made by the bank.

6. Which of the following would NOT be included in M1?

Correct Answer: C) $ 50, 000 in your Roth IRA.

7. A broad measure of the money supply that examines savings accounts, money markets, and timed deposits.

Correct Answer: B) M2.

8. How does the Federal reserve control the amount of money in circulation?

Correct Answer: C) By requiring banks to hold a certain amount in the bank.

9. We have arranged special insurance to cover medical ..... in the event of an accident.

Correct Answer: D) Expenses.

10. Money is used because:

Correct Answer: D) All of the above.

11. Objects that have value because the holder can exchange them for something else of value

Correct Answer: B) Representative Money.

12. Which of the following is an example of money as a unit of account?

Correct Answer: D) Checking the price of a camera at several stores before buying it at the lowest price.

13. A signature on the back of the check that transfers ownership of the check.

Correct Answer: C) Endorsement.

14. What are the three functions of money?

Correct Answer: A) Medium of exchange, store of value, unit of account.

15. The Federal Reserve has three tools at their disposal. Which of the following is NOT a tool of monetary policy?

Correct Answer: D) Changes to foreign policy.

16. A U. S. corporation insuring deposits in the US against banking failure for up to $ 250, 000

Correct Answer: A) FDIC.

17. An item that serves as money must be treated as money by all in that economy, i.e. all must agree that iti s a valid form of money

Correct Answer: B) Acceptable.

18. Which of the following is NOT a use of money?

Correct Answer: D) As a means of barter.

19. Who was the leading Federalist that proposed chartering the First Bank on the United States in 1791?

Correct Answer: A) Alexander Hamilton.

20. This is the organization which directs and controls the activities of the FED. (The folks that control everything.)

Correct Answer: C) The Board of Governors.