This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following system is followed by RBI for issuing currency? A) Proportionate system. B) Simple deposit system. C) Minimum reserve system. D) Fixed fiduciary issue system. Show Answer Correct Answer: C) Minimum reserve system. 2. U.S. money today has value because the government has ordered it as acceptable means to pay debts. A) Representative money. B) Currency. C) Commodity money. D) Fiat money. Show Answer Correct Answer: D) Fiat money. 3. All of the following are basic components of bonds EXCEPT A) Maturity. B) Treasury bonds. C) Par value. D) Coupon rate. Show Answer Correct Answer: B) Treasury bonds. 4. When you retire at the age of sixty-five, you receive a(n) ..... from the government. A) Allowance. B) Fine. C) Pension. D) Grant. Show Answer Correct Answer: C) Pension. 5. What happens to a company's stock price when the compnany makes a profit? A) The stock price stays the same. B) The stock price goes in the same direction as the stock market. C) The stock price goes up. D) The stock price goes down. Show Answer Correct Answer: C) The stock price goes up. 6. In the U.S. free enterprise system one of the primary roles of the government is to: A) Provide new sources of funding for technology start ups. B) Ensure the safety of products through regulation. C) Guarantee that investors profits are secure. D) Employ a majority of the workforce. Show Answer Correct Answer: B) Ensure the safety of products through regulation. 7. What are liquid assets? A) Assets that are or that can easily become currency. B) Fluids, such as mercury, that were historically used as commodity money. C) Assets that flow from one type of bank account to another. D) Money that is counted in M2 but not in M1. Show Answer Correct Answer: A) Assets that are or that can easily become currency. 8. The main difficulty of a barter system is finding A) A form of money that both parties will accept. B) Two people who have what each other wants. C) A third party to evaluate the goods to be traded. D) Trade goods that will retain their value over time. Show Answer Correct Answer: B) Two people who have what each other wants. 9. The amount received in addition to the invested amount A) Return. B) Day Trading. C) Share. D) Stock. Show Answer Correct Answer: A) Return. 10. Which is the main aim of a commercial bank? A) To act as banker to goverment. B) To issue bank note. C) To make profit. D) To manage the national debt. Show Answer Correct Answer: C) To make profit. 11. How do production costs affect aggregate supply? A) Aggregate supply decreases when production costs remain the same. B) Aggregate supply increases when production costs increase. C) Aggregate supply decreases when production costs decrease. D) Aggregate supply increases when production costs decrease. Show Answer Correct Answer: D) Aggregate supply increases when production costs decrease. 12. Many elderly people have to live on the money they ..... when they were working. A) Laid up. B) Put back. C) Put aside. D) Set up. Show Answer Correct Answer: C) Put aside. 13. Which bank operate in public interest without profit motive A) SBI. B) RBI. C) UBI. D) PNB. Show Answer Correct Answer: B) RBI. 14. Credit cards are:i. a generally accepted form of payment and therefore part of M1.ii. are included in M1 because you write a check to pay your monthly bill.iii. a means of borrowing money. A) I only. B) I and iii. C) Ii only. D) I and ii. E) Iii only. Show Answer Correct Answer: E) Iii only. 15. Why is using coins as money easier than using gold bars? A) Coins are more durable. B) Coins are more uniform. C) Coins are more limited in supply. D) Coins are more portable. Show Answer Correct Answer: D) Coins are more portable. 16. How useful cacao beans might be as money today / could be cumbersome or unacceptable. A) Medium of exchange. B) Standard of value. C) Store of value. D) None of above. Show Answer Correct Answer: A) Medium of exchange. 17. If the RR is 5 %, what is the money multiplier? A) 20. B) 10. C) 5. D) 50. Show Answer Correct Answer: A) 20. 18. ..... is anything accepted in exchange for goods and services. A) Barter. B) Money. C) Currency. D) None of above. Show Answer Correct Answer: B) Money. 19. Of the reasons listed below, why does the FED NOT keep reserves? A) Maintain wealth. B) Loan money to other banks. C) Use money for emergencies (like hurricanes/earthquakes). D) Pay back the national debt. Show Answer Correct Answer: D) Pay back the national debt. 20. A type of money that has value because it can be exchanged for something else of value (ex. gold). A) Certificate money. B) Representative money. C) Fiat money. D) Commodity money. Show Answer Correct Answer: B) Representative 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