This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 32 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the 3 functions of money? A) Get rich influence people and flaunt. B) Medium of exchange standard of valuestore of value. C) It doesn't have a function. D) Deposit withdrawal interest. Show Answer Correct Answer: B) Medium of exchange standard of valuestore of value. 2. Our money is valuable because of ..... A) It's worth. B) The government. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 3. A function of money is to act as a measure of value. What does this mean? A) It is used to compare the worth of different goods. B) It is used to enable monthly payments for expensive goods. C) It is used to pay the price of a good. D) It is used for future savings. Show Answer Correct Answer: A) It is used to compare the worth of different goods. 4. What is a function of a central bank? A) Controlling money supply. B) Deciding on the amount of government expenditure. C) Issuing shares. D) Raising taxes. Show Answer Correct Answer: A) Controlling money supply. 5. Items that are used as money must be capable of being used as smaller and smaller denominations so as to enable a range of different values to be represented by the item being used. A) Acceptable. B) Divisible. C) Scarce. D) Uniform. Show Answer Correct Answer: B) Divisible. 6. Which would be the best inflation rate? A) -4%. B) 3%. C) 15%. D) None of above. Show Answer Correct Answer: B) 3%. 7. If you sell something and choose not to spend the money earned right away, the money is acting as a A) Unit of Account. B) Store of Value. C) Medium of Exchange. D) Demand Deposit. Show Answer Correct Answer: B) Store of Value. 8. What percentage of banks failed in 1980? A) 50%. B) 80%. C) 30%. D) 20%. Show Answer Correct Answer: D) 20%. 9. The Federal Reserve System was officially established in A) 1790. B) 1811. C) 1836. D) 1913. Show Answer Correct Answer: D) 1913. 10. Which of these tools in an example of monetary policy? A) Reducing income taxes. B) Changing reserve requirements. C) Increasing government spending. D) Borrowing money through deficit spending. Show Answer Correct Answer: B) Changing reserve requirements. 11. The definition of Commodity Money can best be described as ..... A) Paper money distributed by the U.S. government. B) Object that has intrinsic value in itself that also serves as money. C) Money in the form of cash and coin. D) Printed money from State banks. Show Answer Correct Answer: B) Object that has intrinsic value in itself that also serves as money. 12. Money can be used to settle accounts in the future and this function is referred to as ..... A) Measure of value. B) Store of value. C) Standard of deferred payment. D) Unit of value. Show Answer Correct Answer: C) Standard of deferred payment. 13. Divisibility of money is an important characteristic because ..... A) It can't easily deteriorate. B) You need to be able to get change when it is more that the price of the good. C) It needs to be recognizable. D) None of above. Show Answer Correct Answer: B) You need to be able to get change when it is more that the price of the good. 14. Since bonds are considered among the safest investments, you would expect that they would A) Muture quickly. B) Have high interest rates. C) Take a ling time to mature. D) Have low interest rates. Show Answer Correct Answer: D) Have low interest rates. 15. Which of the characteristics of money can be defined as "easily moved" ? A) Portability. B) Durability. C) Divisibility. D) Uniformity. Show Answer Correct Answer: A) Portability. 16. If the Fed increases the money supply, the economy will see A) A decrease in price level and an increase in real GDP. B) An decrease in price level and a decrease in real GDP. C) An increase in price level and a decrease in real GDP. D) An increase in price level and an increase in real GDP. Show Answer Correct Answer: D) An increase in price level and an increase in real GDP. 17. Penny is an artist and John is a carpenter. Penny agrees to paint a portrait of John's family in exchange for a handmade table created by John. How did Penny and John pay for the goods in their transaction? A) Using a store of value. B) With money. C) Through bartering. D) With currency. Show Answer Correct Answer: C) Through bartering. 18. A card authorizing the holder to buy goods or services A) Principal. B) Interest. C) Credit Card. D) Mortgage. Show Answer Correct Answer: C) Credit Card. 19. All of the following are examples of financial intermediaries EXCEPT A) A credit union. B) A stock certificate. C) A finance company. D) A life insurance company. Show Answer Correct Answer: B) A stock certificate. 20. This is a moneyless economy that relies on the "mutual coincidence of wants" to trade A) Barter. B) Commodity Money. C) Fiat Money. D) Specie. Show Answer Correct Answer: A) Barter. ← 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