This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The fact that money must withstand the wear and tear that comes from being used over and over again is a measure of its A) Portability. B) Currency. C) Durability. D) Age. Show Answer Correct Answer: C) Durability. 2. What does the New York Stock Exchange do? A) Buys and sells stocks but not bonds for wealthy private investors. B) Handles stock and bond trading on the Internet only. C) Arranges stock and bond trading of many large and established companies. D) Arranges the buying and slling of blue chip stocks only. Show Answer Correct Answer: C) Arranges stock and bond trading of many large and established companies. 3. Which of the following is one of the three FUNCTIONS of money? A) Scarcity. B) Portability. C) Divisibility. D) Store of value. Show Answer Correct Answer: D) Store of value. 4. Which of the following agency is responsible for issuing Rs 1 currency note in India? A) RBI. B) Ministry of commerce. C) Ministry of finance. D) Niti aayog. Show Answer Correct Answer: C) Ministry of finance. 5. Money is expected to have value and be used by all to make purchases. A) Acceptability. B) Uniformity. C) Durability. D) Divisibility. Show Answer Correct Answer: A) Acceptability. 6. Name the credit control method which refers to difference between the amount of loan and market value of the security offered by the borrower against the loan. A) Moral Suasion. B) Margin Requirement. C) Legal Reserve Requirement. D) Direct Action. Show Answer Correct Answer: B) Margin Requirement. 7. Stable A) To be acceptable authentic money must be immediately recognizable. B) Must be a way to divide money into smaller units. C) Maintains value over time. D) To purchase people must be able to carry money on them. Show Answer Correct Answer: C) Maintains value over time. 8. An institution for receiving, keeping and lending money A) Bank. B) Bond. C) Stock. D) Company. Show Answer Correct Answer: A) Bank. 9. You'll have to go into the bank if you want money, the cash machine isn't ..... correctly. A) Practising. B) Serving. C) Functioning. D) Exercising. Show Answer Correct Answer: C) Functioning. 10. All units of money must be identical so that people recognize it. A) Divisibility. B) Unit of Account. C) Uniformity. D) Portability. Show Answer Correct Answer: C) Uniformity. 11. The largest and most changeable part of the money supply is ..... A) Currency. B) Interest payments. C) Demand deposits. D) None of above. Show Answer Correct Answer: C) Demand deposits. 12. Institution that accepts deposits for lending purpose is known as ..... A) Commercial Bank. B) Central Bank. C) Government. D) Public. Show Answer Correct Answer: A) Commercial Bank. 13. Emilio borrows $ 1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years? (I=prt, then add I to p to get the answer) A) $ 150. B) $ 192. C) $ 1350. D) $ 1392. Show Answer Correct Answer: D) $ 1392. 14. Money enables people to save. Which function of money does this describe? A) Medium of exchange. B) Store of value. C) Unit of account. D) Standard for deferred payments. Show Answer Correct Answer: B) Store of value. 15. The security feature in U.S. money that has been the most difficult to counterfeit. A) Tinting the paper. B) Watermarks. C) Security Strip. D) All of the above. Show Answer Correct Answer: C) Security Strip. 16. Which of the following is described by these characteristics:one seller, barriers to entry, no product differentiation A) Monopolistic competition. B) Pure competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 17. Which of the following would improve your credit score? A) Keeping credit card balances as high as possible. B) Checking credit cards regularly. C) Consolidating credit cards. D) Paying off all debts. Show Answer Correct Answer: D) Paying off all debts. 18. Divisibility means that money can be easily divided into A) Smaller units of value. B) Currency and coins. C) Representative money and fiat money. D) Different units of exchange. Show Answer Correct Answer: A) Smaller units of value. 19. People make money by discounting bonds, how? A) The interest rate. B) Buying the Bond for less than the other person paid for it. C) The value of the Bond increased. D) The company's rating dropped. Show Answer Correct Answer: B) Buying the Bond for less than the other person paid for it. 20. A bank can only lend out it's A) Required reserves. B) Total checkable deposits. C) Excess reserves. D) Actual reserves. Show Answer Correct Answer: C) Excess reserves. ← 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 7Money And Banking Quiz 8Money And Banking Quiz 9Money And Banking Quiz 10Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books