This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is true about a debit card? A) It's like a check but comes out of your account automatically. B) It's more convenient than writing a check. C) You use a PIN number to authorize purchases. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. What is NOT a government bond? A) Savings. B) Treasury bill. C) Municipal. D) Junk. Show Answer Correct Answer: D) Junk. 3. The interest rate charged to member banks for borrowing reserves from the Fed. A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: C) Discount Rate Changes. 4. The principal plus accrued interest-to-date (not just principal) is calculated for each time period as more interest accrues A) Simple Interest. B) Compound Interest. C) Loan Interest. D) Credit Card. Show Answer Correct Answer: B) Compound Interest. 5. The Congress of the United States printed Greenbacks to help fund the A) Korean War. B) Civil War. C) World War I. D) Spanish-American War. Show Answer Correct Answer: B) Civil War. 6. Patty is selling her car through a newspaper advertisement. When she finds a buyer, she wants a form of payment which is guaranteed to be good. Which form of payment should she avoid? A) Certified check. B) Cash. C) Cashiers check. D) A check. Show Answer Correct Answer: D) A check. 7. Banks keep a portion of deposits in-house and loan the rest A) Fractional Reserve Banking. B) Federal Reserve Bank. C) Certificate of Deposit. D) Speculation. Show Answer Correct Answer: A) Fractional Reserve Banking. 8. All of the following belong in M1 except? A) Bills. B) Coins. C) Checking Accounts. D) Saving Accounts. Show Answer Correct Answer: D) Saving Accounts. 9. The rate at which central bank lends to commercial banks is called? A) SLR. B) CRR. C) Bank rate. D) None of above. Show Answer Correct Answer: C) Bank rate. 10. What is the best example of an action(s) that the Federal Reserve (Fed) can take to stabilize our economy? A) Print money. B) Raise interest rates. C) Require other banks to keep a minimum balance. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. The United States today uses which kind of currency? A) Representative money. B) Fiat money. C) Scarce money. D) Commodity money. Show Answer Correct Answer: B) Fiat money. 12. The exchange of goods without the exchange of money A) Trade. B) Barter System. C) Credit cards. D) Checking. Show Answer Correct Answer: B) Barter System. 13. If they aren't more careful with their money they'll get into ..... A) Debt. B) Loss. C) Overdraft. D) Problem. Show Answer Correct Answer: A) Debt. 14. During mild recessions, if policymakers want to reduce unemployment by increasing investment, which of the following policies would be most appropriate? A) Purchase of government securities by the Federal Reserve. B) An increase in government expenditures only. C) An increase in transfer payments. D) Equal increases in government expenditures and taxes. Show Answer Correct Answer: A) Purchase of government securities by the Federal Reserve. 15. Which of the following agency is responsible for issuing ₹ 1 currency note in India? A) RBI. B) Ministry of commerce. C) Ministry of finance. D) Niti Ayog. Show Answer Correct Answer: C) Ministry of finance. 16. Assets that are offered by the borrower to secure a loan. A) Appraisal. B) Collateral. C) Endorsement. D) Payment. Show Answer Correct Answer: B) Collateral. 17. Supply of money is a A) Flow variable. B) Stock variable. C) Real flow. D) None of these. Show Answer Correct Answer: B) Stock variable. 18. This is the total amount borrowed: A) Principal. B) Interest. C) Maturity. D) Investment. Show Answer Correct Answer: A) Principal. 19. Why is using money as a medium of exchange preferable to bartering? A) The relative value of bartered goods remains the same over time. B) The value of money fluctuates over time. C) The relative value of goods is difficult to establish in a barter system. D) The value of bartered goods decreases after they are purchased. Show Answer Correct Answer: C) The relative value of goods is difficult to establish in a barter system. 20. Which of the following will most likely occur in an economy is more money is demanded than is supplied? A) The amount of investment spending will increase. B) Interest rates will decrease. C) Interest rates will increase. D) The demand curve for money will shift to the right. Show Answer Correct Answer: C) Interest rates will increase. ← 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