This quiz works best with JavaScript enabled. Home > Money And Banking > Money And Banking – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Money And Banking Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Law passed in 1991 that lifted the last of banking restrictions allowing banks, insurance companies, and investment companies to all offer similar products. A) Federal Reserve Act. B) Financial Services Act. C) Banking Deregulation Act. D) Banking Regulation Act. Show Answer Correct Answer: B) Financial Services Act. 2. If they are not more careful with their accounts, they will go ..... A) Penniless. B) Broken. C) Bankrupt. D) Poor. Show Answer Correct Answer: C) Bankrupt. 3. Money must withstand physical wear and tear from being used over and again. A) Uniformity. B) Durability. C) Divisibility. D) Portability. Show Answer Correct Answer: B) Durability. 4. Which is the primary source of revenue for the federal government? A) Fees. B) Taxes. C) Duties. D) Borrowing. Show Answer Correct Answer: B) Taxes. 5. To reduce the money supply, the Fed will most likely A) Buy bonds from the banks. B) Sell bonds to the banks. C) Invade the bank through the use of armed forces. D) Call the United Nations for a loan. Show Answer Correct Answer: B) Sell bonds to the banks. 6. The amount of a deposit that the bank currently keeps and puts into their vault A) Reserve Requirement. B) Total Reserve. C) Excess Reserve. D) Interest Rate. Show Answer Correct Answer: B) Total Reserve. 7. When you use money to purchase your lunch, money is serving which role(s)? I. Medium of exchange II. Store of value III. Unit of account A) I only. B) II only. C) III only. D) I and III only. Show Answer Correct Answer: D) I and III only. 8. What is the difference between a credit and debit card? A) A credit card can be used to borrow money or make purchases, a debit card uses your own money. B) You can borrow money with both. C) Credit card is connected to your personal bank account and a debit card is used for borrowing money. D) With a debit card you have to pay the money back. Show Answer Correct Answer: A) A credit card can be used to borrow money or make purchases, a debit card uses your own money. 9. Amount held bank: A) Open Market Operations. B) Required Reserve Rate Changes. C) Discount Rate Changes. D) Interest Rate Paid on Reserves. Show Answer Correct Answer: B) Required Reserve Rate Changes. 10. If you lose a check and want to prevent someone else from using it, you can issue this type of order to the bank: A) Stop payment. B) Demand deposit. C) Outstanding check. D) Cancelled check. Show Answer Correct Answer: A) Stop payment. 11. Money or things which can be quickly and easily converted into money with little or no loss of purchasing power. A) Liquidity. B) Central Bank. C) Member Bank. D) Default. Show Answer Correct Answer: A) Liquidity. 12. A good that is used as a medium of exchange but also has intrinsic worth because it has other uses. Gold or silver coins are commodity money. A) Currency. B) Representative Money. C) Fiat Money. D) Commodity Money. Show Answer Correct Answer: D) Commodity Money. 13. Young Metro begins trusting banks and he deposits $ 10, 000 in his. The reserve requirement is 20%. How much can his bank now lend out? A) $ 10, 000. B) $ 2, 000. C) $ 8, 000. D) $ 0. Show Answer Correct Answer: C) $ 8, 000. 14. What possess general acceptability? A) Bank draft. B) Money. C) Bill of exchange. D) None of above. Show Answer Correct Answer: B) Money. 15. Money created by a government decree that has no alternative value or use as a commodity A) Commodity Money. B) Bond. C) Specie. D) Fiat Money. Show Answer Correct Answer: D) Fiat Money. 16. Depositing a set amount into a bank for a set amount of time (without touching it) A) Certificate of Deposit. B) Options. C) Futures. D) Return. Show Answer Correct Answer: A) Certificate of Deposit. 17. Credit union A) A financial institution that offers savings and loan services. B) A financial institution that makes money by issuing loans. C) A nonprofit financial institution that's privately owned and provides banking services for its members. D) A financial institution thats involved in trading securities in financial markets. Show Answer Correct Answer: C) A nonprofit financial institution that's privately owned and provides banking services for its members. 18. Redirecting resources from being consumed today to create future benefits A) FDIC. B) Mortgage. C) Investment. D) Bond. Show Answer Correct Answer: C) Investment. 19. The most basic service a bank provides is A) A safe way to store and save money. B) To pay interest. C) To provide credit cards. D) To provide mortgages. Show Answer Correct Answer: A) A safe way to store and save money. 20. When James received his paycheck, he planned to cash it at a check cashing store. You advise him to cash it at his own bank if possible. Why? A) They typically require a two day waiting period before giving cash. B) They typically charge high fees. C) There is likely to be a ceiling on the size of the check he can cash. D) They generally require a co-signor. Show Answer Correct Answer: B) They typically charge high fees. ← 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 9Money And Banking Quiz 10Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books