This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Economics (Macro Economics) Chapter 3 Money And Banking – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 55 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Anna invested $ 2, 500 at an annual rate of 5%. How long will it take until Anna earns $ 1, 125 in interest? A) 5 years. B) 8 years. C) 10 years. D) 9 years. Show Answer Correct Answer: D) 9 years. 2. Money by government decree, has no alternative value or use as a commodity A) Fiat. B) Commodity. C) Specie. D) Counterfeit. Show Answer Correct Answer: A) Fiat. 3. The federal agency that insures bank deposits in the event of a bank failure is the A) DDA. B) FDIC. C) FSLIC. D) Fed. Show Answer Correct Answer: B) FDIC. 4. What is a commercial bank? A) A government bank. B) A banker's bank. C) A retail bank operated for profit. D) None of the above. Show Answer Correct Answer: D) None of the above. 5. Make long-term loans from several short-term deposits (maturity transformation).Collect information of savers and borrowers and take care of their needs.Sell and buy foreign currencies and financial instruments. A) Central bank. B) Commercial bank. C) All the above. D) None of the above. Show Answer Correct Answer: B) Commercial bank. 6. A period of time when a shop reduces the price of its products is a ..... A) Salesperson. B) Cashpoint. C) Discount. D) Sale. Show Answer Correct Answer: D) Sale. 7. Money refer to ..... A) The value of paper money in the economy. B) The value of all coins and currency in circulation at anytime. C) The amount of money that people hold is negatively related with the interest rate. D) Anything that is generally accepted as a medium of exchange. Show Answer Correct Answer: D) Anything that is generally accepted as a medium of exchange. 8. What is the most significant and traditional function of Commercial Banks? A) Provide loans. B) Provide overdrafts. C) Provide discounting of bills. D) Accepting deposits. Show Answer Correct Answer: D) Accepting deposits. 9. The notes in the wallet were all ..... American dollars. A) Counterfeit. B) False. C) Mimic. D) Mock. Show Answer Correct Answer: A) Counterfeit. 10. Pagar a plazos A) To pay in installments. B) To deposit. C) To save. D) To cash a check. Show Answer Correct Answer: A) To pay in installments. 11. Which coin is the smallest? A) Quarter. B) Dime. C) Nickel. D) Penny. Show Answer Correct Answer: D) Penny. 12. ..... is money by government decree, has no alternative value A) Gold standard. B) Specie. C) Barter. D) Fiat money. Show Answer Correct Answer: D) Fiat money. 13. Which of the following is a positive aspect of using a credit card? A) The interest charged on credit cards is lower than interest on all other types of loans. B) With a credit card, money is automatically deducted from the user's bank account. C) Using a credit card allows consumers to buy goods even if they don't have cash. D) Credit cards bills can quickly add up if the consumer only pays the minimum. Show Answer Correct Answer: C) Using a credit card allows consumers to buy goods even if they don't have cash. 14. To trade goods or services without the use of money is ..... A) Bartering. B) Trading. C) Economy. D) Debt. Show Answer Correct Answer: A) Bartering. 15. An ..... operation is a purchase or sale of government debt by the Fed. A) Open-Market. B) Closed-Market. C) Discount Window. D) Central. Show Answer Correct Answer: A) Open-Market. 16. Money functions as all of the following EXCEPT A) A store of value. B) A monetary standard. C) A medium of exchange. D) A measure of value. Show Answer Correct Answer: B) A monetary standard. 17. Which of following is no the function of the central bank? A) Banking facilities to government. B) Banking facilities to public. C) Lending to government. D) Lending to commercial banks. Show Answer Correct Answer: B) Banking facilities to public. 18. Kredit is A) A credit. B) A loan. C) A bank. D) A job. Show Answer Correct Answer: B) A loan. 19. Which account is the least liquid? A) Checking Account. B) Savings Account. C) Money Market Deposit Account. D) Certificate of Deposit. Show Answer Correct Answer: D) Certificate of Deposit. 20. Which of the following statements about the characteristics of debt and equity is FALSE? A) They can both be long-term financial instruments. B) They can both be short-term financial instruments. C) They both involve a claim on the issuer's income. D) They both enable a corporation to raise funds. Show Answer Correct Answer: B) They can both be short-term financial instruments. 21. Another advantage of borrowing money online is the lower ..... rate. A) Interest. B) Income. C) Safety net. D) None of the above. Show Answer Correct Answer: A) Interest. 22. When you pay for a new CD with a debit card, you are using the electronic form of a payment by A) Money order. B) Personal check. C) Credit card. D) Cashier's check. Show Answer Correct Answer: B) Personal check. 23. Money that can be easily divided into smaller units of value has the characteristic of A) Divisibility. B) Denominations. C) Exchange. D) Durability. Show Answer Correct Answer: A) Divisibility. 24. If inflation is to be combated, the RBI A) Raises SLR and lowers CRR. B) Lowers SLR and raises CRR. C) Raises both CRR and SLR. D) None of these. Show Answer Correct Answer: B) Lowers SLR and raises CRR. 25. Money which is accepted as a medium of exchange because of the trust between the payer and the payee is called A) Full bodied money. B) Credit money. C) Fiat money. D) Fiduciary money. Show Answer Correct Answer: D) Fiduciary money. ← PreviousNext →Related QuizzesClass 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 1Class 12 Economics (Macro Economics) Chapter 3 Money And Banking Quiz 2Class 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books