Monetary and Banking System Quiz

Lisa from BLACKPINK wants to deposit money in a bank. Which function of money is she using?

• Medium of exchange

• Store of value

• Unit of account

• Money creation

Uncle Roger is upset because loan interest rates have increased. What monetary policy tool influences interest rates?

• Open Market Operations

• Discount Rate

• Reserve Requirements

• All of the above

Which of the following is an example of fiat money?

• Bitcoin

• Gold coins

• Ringgit Malaysia (RM)

• A rare Pokémon card

If Taylor Swift uses cryptocurrency to buy a car, which type of money is she using?

• Fiat money

• Commodity money

• Digital money

• Barter system

Siti Nurhaliza deposits RM10,000 in a bank with a 10% reserve requirement. How much can the bank lend out?

• RM9,000

• RM10,000

• RM1,000

• RM11,000

Elon Musk wants to borrow RM100 million to start a new business. How do banks create money for loans?

• Printing money

• Fractional reserve banking

• Open Market Operations

• Raising taxes

Which institution regulates Malaysia's banking system?

• Maybank

• Bank Negara Malaysia

• Ministry of Finance

• ShopeePay

Which monetary policy tool involves buying and selling government bonds?

• Open Market Operations (OMO)

• Discount Rate

• Reserve Requirements

• Money Multiplier

Which function of money is used when someone checks the price of a new iPhone before buying?

• Store of value

• Medium of exchange

• Unit of account

• Money supply

If Bank Negara raises the discount rate, what happens?

• Loans become cheaper

• Money supply increases

• Banks borrow less from the central bank

• Inflation rises