Money and Banking Quiz

What is one of the functions of money?

• Medium of exchange

• Unit of labor

• Measure of wealth

• Source of income

Which of the following is a property of money?

• Inflatable

• Recognized

• Perishable

• Inflexible

The Federal Reserve System is divided into how many districts?

• 15

• 12

• 20

• 10

Which of the following is a type of financial exchange?

• Loan

• Lease

• Mortgage

• Cash

What is a banknote?

• A type of loan

• A document guaranteeing payment of a specific amount of money

• A form of electronic funds transfer

• A type of credit card

Which of the following is NOT a function of the Federal Reserve?

• Supervise financial institutions

• Maintain financial stability

• Establish monetary policy

• Provide educational loans

What is a treasury bill?

• A security that pays interest over ten to thirty years

• A type of banknote

• A security that matures in a year or less

• A form of currency

Which of the following allows customers to pay for purchases directly from their checking account?

• Debit card

• Credit card

• Cash

• Treasury note

True or False: Credit unions and savings and loan institutions are both examples of depository institutions.

• True

• Only credit unions

• Only savings and loan institutions

• False

What is a depository institution?

• An institution that trades securities

• An institution that issues loans

• An institution that accepts money from customers and deposits it into their accounts

• An institution that provides insurance