This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a business owned and managed by a single person called? A) Conglomerate. B) General partnership. C) Limited partnership. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 2. The Demand for Money is made up of A) M1. B) Savings Bonds and Securities. C) Real GDP. D) Transactions Demand + Assets Demand. Show Answer Correct Answer: D) Transactions Demand + Assets Demand. 3. The ability to easily convert financial assets into cash without loss in value. A) Inflation. B) Annuity. C) Liquidity. D) Onions. Show Answer Correct Answer: C) Liquidity. 4. Money secured by the equity in a consumer's home. A) HELOC. B) ARM. C) FDIC. D) Mortgage. Show Answer Correct Answer: A) HELOC. 5. What do many people consider to be the chief advantage of sole proprietorship? A) The owner has unlimited liability. B) The owner keeps all the profits. C) The owner has unlimited start-up funds. D) The owner does not have to obey labor laws. Show Answer Correct Answer: B) The owner keeps all the profits. 6. She gives each of her children fifty pence a week ..... money. A) Pocket. B) Free. C) Ready. D) Spare. Show Answer Correct Answer: A) Pocket. 7. Investing in a money market mutual fund in a certificate of deposit because unlike CDs, money market funds A) Are not insured by the FDIC. B) Are not protected by the Securities and Exchange Commission. C) Do not earn a fixed interest rate. D) Must be held for a preset amount of time. Show Answer Correct Answer: A) Are not insured by the FDIC. 8. If the money supply stays constant but the demand for money decreases, the equilibrium interest rate and quantity of money will change in which of the following ways? Interest Rate/Quantity of Money A) Increase/decrease. B) Increase/not change. C) Decrease/decrease. D) Decrease/increase. E) Decrease/not change. Show Answer Correct Answer: E) Decrease/not change. 9. Which of the following are banking services A) Issuing credit cards. B) Issuing loans. C) Storing money. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. The Federal Reserve is in charge of what? A) Distributing info about the economy. B) Conducting the nations monetary policy. C) Supervise and regulate banks. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. An inventor needs a huge amount of money to start a business but does not want to give up control of how the product will be made. What business organization is he likely to choose? A) Sole proprietorship. B) General partnership. C) Limited partnership. D) Limited liability partnership. Show Answer Correct Answer: C) Limited partnership. 12. Commercial banks collect and ..... (1) ..... cheques on behalf of their ..... (2) ..... A) Clear, (2) owners. B) Lend, (2) country. C) Clear, (2) clients. D) Count, (2) creditor. Show Answer Correct Answer: C) Clear, (2) clients. 13. The use of a mobile (cell) phone to make payments is an example of which function ofmoney? A) A medium of exchange. B) A standard of deferred payment. C) A store of wealth. D) A unit of account. Show Answer Correct Answer: A) A medium of exchange. 14. What is the value of multiplier if LRR is 10% A) 20. B) 10. C) 5. D) 50. Show Answer Correct Answer: B) 10. 15. The ease with which assets can be converted into cash A) Liquidity. B) Return. C) Futures. D) Options. Show Answer Correct Answer: A) Liquidity. 16. Dollars and cents A) Currency. B) Money. C) Certificate of Deposit. D) Money Market. Show Answer Correct Answer: A) Currency. 17. Our money supply is ..... A) Hard to disperse. B) Hard to regulate. C) Easy to control. D) None of above. Show Answer Correct Answer: C) Easy to control. 18. Decisions regarding purchases and sales of government securities by the Fed are made by the: A) Federal Funds Committee. B) Discount Committee. C) Federal Open Market Committee. D) FDIC. Show Answer Correct Answer: C) Federal Open Market Committee. 19. What is the Federal Reserve? A) Agency responsible for international trade. B) Central credit union. C) Agency responsible for collecting taxes. D) Central bank of the U.S. Show Answer Correct Answer: D) Central bank of the U.S. 20. All of the following are components of the money supply in the United States EXCEPT A) Paper money. B) Checkable deposits. C) Gold bullion. D) Demand deposits. Show Answer Correct Answer: C) Gold bullion. ← PreviousNext →Related QuizzesMoney And Banking Quiz 1Money And Banking Quiz 2Money 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 10Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books