This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Demand deposits go into ..... A) Savings accounts. B) Mutual accounts. C) Checking accounts. D) None of above. Show Answer Correct Answer: C) Checking accounts. 2. If $ 1000 is deposited into a checking account and excess reserves increase by $ 700, the reserve ratio must be A) 70%. B) 30%. C) 40%. D) 90%. Show Answer Correct Answer: B) 30%. 3. Everyone must agree on the system being used A) Scarcity. B) Acceptability. C) Stability. D) Portability. Show Answer Correct Answer: B) Acceptability. 4. Money with intrinsic value that can have some other use is called A) Commodity money. B) Token money. C) Fiat money. D) Barter money. Show Answer Correct Answer: A) Commodity money. 5. Currency and coins in circulation + checking deposits + travelers checks PLUS near-moneys A) M1. B) M2. C) M3. D) M4. Show Answer Correct Answer: B) M2. 6. All of the following are examples of commodity money EXCEPT A) An IOU. B) Cotton. C) Salt. D) Precious gem stones. Show Answer Correct Answer: A) An IOU. 7. People have so many reasons to hold their money. Choose of the following situation to describe the reasons.I. To pay clinic billsII. To buy foods and drinksIII. To pay transportation servicesIV. To make a profitable investment A) I and II only. B) II and III only. C) III and IV only. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. You receive money as payment for working at a grocery store. This best illustrates which function of money? A) Medium of exchange. B) Store of value. C) Unit of account. D) Commodity money. Show Answer Correct Answer: A) Medium of exchange. 9. Owners must apply for a ..... from the federal government. A) Charter. B) Loan. C) Savings account. D) Interest rate. Show Answer Correct Answer: A) Charter. 10. The cost of credit on a yearly basis, expressed as a percentage. A) APR. B) ARM. C) Loan. D) DTI. Show Answer Correct Answer: A) APR. 11. Which of the following function is not performed by the central bank? A) Banker to the government. B) Overdraft facility. C) Controller of money supply. D) Banker's Bank. Show Answer Correct Answer: B) Overdraft facility. 12. Which financial product typically pays the highest rate of interest? A) Savings account. B) Money market account. C) Certificate of deposit. D) Common stock. Show Answer Correct Answer: C) Certificate of deposit. 13. What does the term limited life mean? A) The business is restricted in size. B) There is a ceiling on the amount of business expenses. C) There are many regulations about business activities. D) The business does not continue if the owner leaves . Show Answer Correct Answer: D) The business does not continue if the owner leaves . 14. One of the economic properties of money is A) Divisibility. B) Durability. C) Scarcity. D) Uniformity. Show Answer Correct Answer: C) Scarcity. 15. Supply of money refers to quantity of money A) As on 31st march. B) As on any point of time. C) During fiscal year. D) During period of time. Show Answer Correct Answer: B) As on any point of time. 16. Principal A) The ability to be used as, or directly converted into cash. B) The price paid for the use of borrowing money. C) Amount of money borrowed. D) None of above. Show Answer Correct Answer: C) Amount of money borrowed. 17. Which of the following is not something that you fill out on a check? A) Your signature. B) The date. C) Your birthdate. D) Who the check is made payable to. Show Answer Correct Answer: C) Your birthdate. 18. The rate is given as a percent (%). Before using it in the simple interest formula, you must first convert it to a ..... A) Fraction. B) Decimal. C) Ratio. D) Dollar amount. Show Answer Correct Answer: B) Decimal. 19. Which of the following condition needed for financial institution become a bank A) Accepting deposit. B) Advancing loans. C) Both. D) None of these. Show Answer Correct Answer: C) Both. 20. The architect's work was superb, but he charged an enormous ..... A) Ticket. B) Fare. C) Fee. D) Subscription. Show Answer Correct Answer: C) Fee. ← 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