This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 30 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The cost of using money. A) Loan fee. B) Overdraft. C) Interest. D) Payment. Show Answer Correct Answer: C) Interest. 2. All of the following are considered liquid assets EXCEPT A) Traveler's checks. B) Money market mutual funds. C) Currency. D) Deposits in checking accounts. Show Answer Correct Answer: B) Money market mutual funds. 3. Certain information that Federal and State laws require creditors to give to borrowers relative to the terms of the credit extended. A) Disclosures. B) Fine print. C) Loan application. D) Amortization. Show Answer Correct Answer: A) Disclosures. 4. Expenses that do not change every month, such as rent A) Variable Expenses. B) Static Expenses. C) Fixed Expenses. D) Never Change Expenses. Show Answer Correct Answer: C) Fixed Expenses. 5. ..... is the rate at which commercial banks borrow short term funds from the central bank by selling their financial securities to the central bank A) CRR. B) SLR. C) Bank rate. D) Repo rate. Show Answer Correct Answer: D) Repo rate. 6. The progressive income tax is an example of ..... . A) Government dependency. B) An automatic stabilizer. C) Priming the pump. D) An entitlement. Show Answer Correct Answer: B) An automatic stabilizer. 7. The main advantage of diversification as an investment policy is that it A) Reduces risk to investors. B) Increases investors' access to their money. C) Offsets the effects of inflation on investments. D) Guarantees a fixed rate of return on an investment. Show Answer Correct Answer: A) Reduces risk to investors. 8. An advantage of savings accounts is ..... A) They provide interest for deposited money. B) Easy access to funds. C) No limits on withdrawns. D) None of above. Show Answer Correct Answer: A) They provide interest for deposited money. 9. Which is a good synonym for the word barter in the term barter economy? A) Monetary. B) Specie. C) Fiat. D) Trade. Show Answer Correct Answer: D) Trade. 10. In case of credit money A) Money value=commodity value. B) Money value>commodity value. C) Money value D) None of these. Show Answer Correct Answer: B) Money value>commodity value. 11. What is an important characteristic of m1 money? A) Liquidity. B) Durability. C) Flexibility. D) Solidity. Show Answer Correct Answer: A) Liquidity. 12. Who are co-operative banks owned by? A) RBI. B) Normal people. C) Government. D) Islamic bank. Show Answer Correct Answer: C) Government. 13. A reserve ratio is the: A) Proportion of cash and security reserves the bank needs to hold. B) Fraction of deposits that the bank is required to hold. C) Loan to deposit ratio in the bank's balance sheet. D) Money belonging to the bank's largest depositors. Show Answer Correct Answer: B) Fraction of deposits that the bank is required to hold. 14. Money put in a bank account is called a ..... and money taken out is called a ..... A) Batman and Robin. B) Deposit and Withdraw. C) Sponge bob and Patrick. D) Withdraw and direct deposit. Show Answer Correct Answer: B) Deposit and Withdraw. 15. Government bond A) A security that pays interest over terms of ten to thirty years. B) A security that pays interest over terms ranging from 2 to 10 years. C) Type of financial investment Issued by a corporation, government, or other organization. D) Anything of value that is accepted in return for goods or services. Show Answer Correct Answer: A) A security that pays interest over terms of ten to thirty years. 16. This type of money is considered legal tender and gets its value from the people's faith in the government. A) Commodity money. B) Representative money. C) Fiat money. D) Gold standard. Show Answer Correct Answer: C) Fiat money. 17. A card that gives the holder an option to borrow money, usually at the point of sale. A) Debit card. B) Loan. C) Signature card. D) Credit card. Show Answer Correct Answer: D) Credit card. 18. Holds its value over a period of time A) Medium of Exchange. B) Barter. C) Money. D) Store of Value. Show Answer Correct Answer: D) Store of Value. 19. The National Banking Acts of 1863 and 64 gave the federal government power to do all of the following EXCEPT A) Charter banks. B) Require banks to hold gold and silver reserves to cover their bank notes. C) Seize the assets of any individual. D) Issue a single national currency. Show Answer Correct Answer: C) Seize the assets of any individual. 20. An adjustable rate mortgage in which the interest rate and payment may change over the life of the loan as market conditions change. A) APR. B) ARM. C) Interest rate. D) Principal. Show Answer Correct Answer: B) ARM. ← 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