This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All the followings are the functions of Bank Negara Malaysia EXCEPT ..... A) Issuing government bond. B) Accepting deposits from commercial bank. C) Be a holder of gold and foreign exchange. D) Accepting current deposits from individual. Show Answer Correct Answer: D) Accepting current deposits from individual. 2. What does the acronym FDIC stand for A) Federal Debit Investment Corporation. B) Federal Deposit Incorporated Committee. C) Federal Deposit Insurance Corporation. D) Federal Debt Insolvency Corporation. Show Answer Correct Answer: C) Federal Deposit Insurance Corporation. 3. The price paid for the use of borrowed money. A) Barter. B) Loan. C) Mortgage. D) Interest. Show Answer Correct Answer: D) Interest. 4. What is the purpose of Open Market Operations conducted by the Central Bank? A) To increase or decrease money supply. B) To regulate interest rates. C) To control inflation. D) To stabilize the stock market. Show Answer Correct Answer: A) To increase or decrease money supply. 5. Currency is A) Only notes. B) Notes and coins. C) Only coins. D) None of the above. Show Answer Correct Answer: B) Notes and coins. 6. What is the primary role of banks? A) Banks act as intermediaries between borrowers and depositors. B) Banks only provide loans to borrowers. C) Banks only store money for depositors. D) Banks determine the interest rate for the entire economy. Show Answer Correct Answer: A) Banks act as intermediaries between borrowers and depositors. 7. The sale and purchase of securities by the Central Bank is called: A) Open Market Operations. B) Discount Rate Policy. C) Credit creation. D) None of the above. Show Answer Correct Answer: A) Open Market Operations. 8. Any commodity that can be held in order to enable people to buy and sell it at different times and different places refer the function of money as ..... A) Medium of exchange. B) Measure of value. C) Store of value. D) Standard of deferred payment. Show Answer Correct Answer: C) Store of value. 9. Which is a secondary function of commercial banks? A) Accepting deposits. B) Credit creation. C) Making advances. D) Offering internet banking. Show Answer Correct Answer: D) Offering internet banking. 10. Which of the following is used to describe money that is in your pocket, your checking account, and your piggy bank? A) Specie money. B) Fiat money. C) M1. D) M2. Show Answer Correct Answer: C) M1. 11. Your present self impacts your future self A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 12. An antonym for "to open an ccount" is: A) To transfer an account. B) To deposit an account. C) To close an account. D) To help an account. Show Answer Correct Answer: C) To close an account. 13. ..... :money in the form of gold or silver coins A) Fiat. B) Barter. C) Commodity. D) Specie. Show Answer Correct Answer: D) Specie. 14. Fiat money is money because the government says so. Which is fiat money? A) Paper rupees used in shops. B) A banana. C) A wooden stick. D) None of the above. Show Answer Correct Answer: A) Paper rupees used in shops. 15. Stocks are ..... that help people increase their assets. A) Units of account. B) Investments. C) All the above. D) None of the above. Show Answer Correct Answer: B) Investments. 16. Llenar (un formulario) A) To borrow. B) To fill out a form. C) To exchange. D) To pay with credit. Show Answer Correct Answer: B) To fill out a form. 17. To put money into your account A) Account Balance. B) Deposit. C) Penalty. D) Account Balance. Show Answer Correct Answer: B) Deposit. 18. ..... is a sudden rush by depositors to withdraw their deposited funds from banks. A) Bank run. B) Demand deposit. C) Electronic funds transfer. D) Fiat. Show Answer Correct Answer: A) Bank run. 19. What is the impact of high inflation on the economy? A) It increases the value of money. B) It decreases the purchasing power of money. C) It has no impact on the economy. D) It stabilizes the economy. Show Answer Correct Answer: B) It decreases the purchasing power of money. 20. ..... are a paper currency issued by the FED. this is the real name for our bills. A) Specie. B) Federal Reserve Notes. C) Disney bucks. D) Shilling. Show Answer Correct Answer: B) Federal Reserve Notes. 21. What should you do with money you get as a gift? A) Throw it away. B) Give it away. C) Save it. D) Hide it. Show Answer Correct Answer: C) Save it. 22. Currency of England A) Dollar. B) Euros. C) Pounds sterling. D) Pesos. Show Answer Correct Answer: C) Pounds sterling. 23. The federal funds rate is the rate: A) A private borrower would pay a bank for a loan. B) One bank would pay another bank for a loan. C) A bank would pay the Federal Reserve for a loan. D) The Federal Reserve would pay to borrow money from government. Show Answer Correct Answer: B) One bank would pay another bank for a loan. 24. One of the money supply is A) O 1. B) N 1. C) M1. D) P1. Show Answer Correct Answer: C) M1. 25. One of the functions of central bank is ..... A) Creating non-physical money. B) Making loans to the public. C) Making loans to other banks. D) Making payments for imports. Show Answer Correct Answer: C) Making loans to other banks. ← PreviousNext →Related QuizzesClass 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 1Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 3Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 4Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 5Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 6Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 7Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 8Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 9Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 10Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books