PE Money & BAnking

Which of the following is NOT a function of money?

• a) Medium of exchange
  

• b) Measure of value
  

• c) Increases the production of goods

• d) Store of value
  

What does "standard of deferred payment" mean?

• a) Money can be used to pay debts in the future

• b) Money can be stored for future use
  

• c) Money is used to buy goods and services
  

• • d) Money maintains a stable value

Which of the following is NOT a characteristic of money?

• a) Portability
  

• b) Limited supply
  

• c) Counterfeitability

• d) Divisibility
  

Holding money for daily expenses falls under which motive?

• a) Precautionary motive
  

• b) Transaction motive

• c) Speculative motive
  

• d) Investment motive

The precautionary motive for holding money refers to:

• a) Buying goods and services

• b) Saving for unexpected needs

• c) Investing in profitable ventures

• d) Spending on luxury items

Who controls the money supply in Malaysia?

• a) Ministry of Finance

• b) Central Bank (Bank Negara Malaysia)

• c) Commercial Banks

• d) World Bank

Why is money supply limited?

• a) To prevent inflation

• b) To increase government revenue

• c) To make money valuable

• d) To support commercial banks

The first form of money used in trade was:

• a) Coins

• b) Barter system

• c) Paper currency

• d) Electronic money

Which of the following was NOT used as early money?

• a) Cowry shells

• b) Gold and silver

• c) Electronic money

• d) Leather currency

When was the first paper currency introduced in China?

• a) 500 B.C.

• b) 118 B.C.

• c) 9th century A.D.

• d) 1455 A.D.