This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 33 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money must be durable because ..... A) It has to last for at least a few months. B) It can't fall apart easily or it won't work as well. C) It needs to be small enough to fit in your pocket. D) None of above. Show Answer Correct Answer: B) It can't fall apart easily or it won't work as well. 2. An Investment in which investors pool their money to buy stocks and bonds A) Mutual Funds. B) Preferred Funds. C) Common Funds. D) Diverse Funds. Show Answer Correct Answer: A) Mutual Funds. 3. A money that can be saved without losing its value over time acts as a A) A fiat money. B) Medium of exchange. C) Store of value. D) Standard of value. Show Answer Correct Answer: C) Store of value. 4. High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of: A) Investment. B) Expansion. C) Stagflation. D) Recession. Show Answer Correct Answer: C) Stagflation. 5. The Value of credit multiplier will be high when Legal Reserve Ratio is: A) Low. B) High. C) Zero. D) Infinity. Show Answer Correct Answer: A) Low. 6. I don't have any cash just now. I'm ..... A) Flat broke. B) Flat broken. C) No money. D) Less money. Show Answer Correct Answer: A) Flat broke. 7. This is the price paid for borrowing money: A) Principal. B) Interest. C) Maturtity. D) Cost. Show Answer Correct Answer: B) Interest. 8. The rate at which central bank lends to commercial banks for long term requirements is called? A) SLR. B) CRR. C) Bank rate. D) None of above. Show Answer Correct Answer: C) Bank rate. 9. Currency and coins in circulation + checking deposits + travelers checks: A) M1. B) M2. C) M3. D) M4. Show Answer Correct Answer: A) M1. 10. Stephanie wants to deposit HK$ 300, 000 for two months in Hong Kong. Which of the following financial institutions can accept her deposit? (1) licensed banks(2) restricted licence banks(3) deposit-taking companies A) (1) only. B) (1) and (3) only. C) (2) and (3) only. D) (1), (2) and (3). Show Answer Correct Answer: A) (1) only. 11. Demand deposit include ( Choose the correct alternative) A) Saving account deposit and fixed deposits. B) Saving account deposits and current account deposit. C) Current account deposits and fixed deposits. D) All types of deposits. Show Answer Correct Answer: B) Saving account deposits and current account deposit. 12. What happens when you make a purchase using a credit card? A) The credit card issuer pays the store. B) The money is immediately deducted from your account. C) The amount of the purchase is deducted from a prepaid account. D) The place where you made the purchases receives the money within 24 hours. Show Answer Correct Answer: A) The credit card issuer pays the store. 13. Medium of exchange, store of value, and measure of value are all ..... A) Characteristics of money. B) Functions of money. C) Types of money. D) Measures of money. Show Answer Correct Answer: B) Functions of money. 14. If the total deposit created by commercial banks is Rs 20000 cr and LRR is 20%, then amount of initial deposit will be A) Rs 2000 cr. B) Rs 3000 cr. C) Rs 4000 cr. D) Rs 14000 cr. Show Answer Correct Answer: C) Rs 4000 cr. 15. Interest A) Price paid for the use of borrowed money. B) The amount of money borrowed. C) The act of redirecting resources from being consumed today. D) None of above. Show Answer Correct Answer: A) Price paid for the use of borrowed money. 16. An example of a stored value card is a (n) A) Debit card. B) Credit card. C) Prepaid phone card. D) Mortgage. Show Answer Correct Answer: C) Prepaid phone card. 17. All of the following are services provided by banks and other financial institutions EXCEPT A) Storing and saving money. B) Paying interest. C) Increasing the amount of money in circulation. D) Providing mortgages. Show Answer Correct Answer: C) Increasing the amount of money in circulation. 18. A bond will increase in value if A) Interest rates decrease. B) Interest rates increase. C) The company files bankruptcy. D) The government increases it's debt. Show Answer Correct Answer: A) Interest rates decrease. 19. Fiscal policy is carried out by: A) Congress and the President. B) The Federal Reserve. C) The PA Reserve Bank. D) The United Nations. Show Answer Correct Answer: A) Congress and the President. 20. As a form of money, pearls can better perform the function of a ..... than stamps because pearls are more ..... A) Unit of account divisible. B) Unit of account portable. C) Store of value durable. D) Store of value homogeneous. Show Answer Correct Answer: C) Store of value durable. ← 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