This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the equation of exchange? A) 1/RR. B) 1/MPS. C) MV=PQ=GDP. D) Excess=Actual-Required. Show Answer Correct Answer: C) MV=PQ=GDP. 2. A line of credit for checks your account can't cover. A) Overdraft protection. B) Endorsement. C) Stop payment. D) Canceled check. Show Answer Correct Answer: A) Overdraft protection. 3. The amount banks hold beyond required reserve; amount that banks can lend. A) Reserve Requirement. B) Excess Reserves. C) Multiplier. D) Expansionary Effect. Show Answer Correct Answer: B) Excess Reserves. 4. Uniformity of currency means that it is A) Easily divided. B) Easy to count and measure. C) Accepted by everyone in a society. D) Scarce. Show Answer Correct Answer: B) Easy to count and measure. 5. Fiat money is accepted as payment because ..... A) It is backed by silver. B) It has separate value as another resource. C) The government says it must be accepted. D) None of above. Show Answer Correct Answer: C) The government says it must be accepted. 6. As commercial banks keep more excess reserves, money creation A) Increases. B) Decreases. C) Remains the same. D) Could either increase or decrease. Show Answer Correct Answer: B) Decreases. 7. What is a prospectus? A) A pool of momey from various investors. B) A report for an individual's investments. C) A collection of financial assets. D) A report for possible investors. Show Answer Correct Answer: D) A report for possible investors. 8. Which of the following is NOT an example of M1 money? A) Currency. B) Mutual fund. C) Travelers' checks. D) A checking account. Show Answer Correct Answer: B) Mutual fund. 9. ..... is a designation printed on paper currency that says it must be accepted as payment A) Barter. B) Fiat. C) Legal tender. D) Specie. Show Answer Correct Answer: C) Legal tender. 10. Which term describes the act of swapping items in exchange for other items in the absence of money? A) Bartering. B) Double coincidence of wants. C) Negotiation. D) Unit of account. Show Answer Correct Answer: A) Bartering. 11. Refers to the turn over rate, or how often money is used on average in a given year. A) Real Output. B) Monetary Growth Rule. C) Velocity. D) Monetary Policy. Show Answer Correct Answer: C) Velocity. 12. What is the main purpose of the FDIC? A) To make sure that commerical and investment banks do not fail. B) To make sure that customers do not lose money if a bank fails. C) To make sure that banks charge a fair amount of interests on loans. D) To make sure that the government has enough gold to cover its expenses. Show Answer Correct Answer: B) To make sure that customers do not lose money if a bank fails. 13. You need a new computer, and you will need a loan in order to buy one. which lender is most likely to charge you the highest interest rate on your loan? A) Savings and loan association. B) Savings bank. C) Credit union. D) Finance company. Show Answer Correct Answer: D) Finance company. 14. Why is portability an important characteristic of money? A) It would be hard to use money if everyone did not accept it. B) It would be confusing if some dollar bills were worth more than others. C) If we could not carry money with us, it would be hard to use. D) If money did not last a long time, we could not use it to store value. Show Answer Correct Answer: C) If we could not carry money with us, it would be hard to use. 15. Which of the following people is most likely to succeed as a sole proprietor? A) Film studio. B) Dry cleaner. C) Kitchen appliance maker. D) Football helmet manufacturer. Show Answer Correct Answer: B) Dry cleaner. 16. ..... are called legal tenders A) Demand deposit. B) Time deposits. C) Inter-bank deposit. D) Currency notes and coins. Show Answer Correct Answer: D) Currency notes and coins. 17. Master and Visa are what? A) Credit cards. B) Interest. C) Collateral. D) Withdrawal. Show Answer Correct Answer: A) Credit cards. 18. The concept of global economy has come into existence due to A) Store of value. B) Transfer of value. C) Measure of value. D) None of these. Show Answer Correct Answer: B) Transfer of value. 19. Which of the following could be considered a synonym for FICA? A) Payroll tax. B) Corporate income tax. C) Excise tax. D) Intergovernmental revenue. Show Answer Correct Answer: A) Payroll tax. 20. What type of money is issued by the United States government? A) Commodity money. B) Fiat money. C) Near money. D) Representative money. Show Answer Correct Answer: B) Fiat 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