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PoBMF - Chapter 15 - Money and Banking Test

Total questions: 25

Worksheet time: 33mins

Name
Class
Date
1.

_____________ is a bank that can lend money to other banks in times of crisis

a)

Congress

b)

Central Bank

c)

Department of the Interior

d)

National Bank

2.

____________ is the privately owned, publicly controlled central bank of the U.S.

a)

J.P. Morgan Chase

b)

Bank of America

c)

The Federal Reserve System (FED)

d)

Wells Fargo

3.

_____________ are a paper currency issued by the FED

a)

Specie

b)

Federal Reserve Notes

c)

Disney bucks

d)

Shilling

4.

Which of the following is one of the three functions of money?

a)

scarcity

b)

portability

c)

divisibility

d)

store of value

5.
Which of these is the most liquid asset? 
a)
Checks
b)
Property
c)
Cash
d)
Credit
6.

What type of money would this be?

a)

Commodity

b)

Fiat

c)

Representitive

d)

Gold

7.
What is a negative of using a Debit Card?
a)
Bank Fees if you use your banks ATM
b)
Paying interest
c)
Can get charged fees if the money isn't in your account
d)
They only work on weekdays
8.

The more credit cards you have, the higher your credit score?

a)

True

b)

False

9.

The best way for a government to get out of debt is to print more money?

a)

True

b)

False

10.

Which is the least risky investment?

a)

A Stock

b)

A Mutual Fund

c)

Starting your own business

11.
Progressive taxes
a)
are higher the more you make
b)
are lower the more you make
c)
are the same for everyone
12.

Regressive taxes...

a)

Are higher the more you make

b)

Are lower the more you make

c)

are the same for everyone

13.
"The Fed" refers to the....
a)
Federal Bureau of Investigation
b)
Federal Government
c)
Federal Reserve System
d)
Federal Income Tax
14.
The Federal Reserve
a)
is made up of 12 district banks and 25 branch banks.
b)
is managed by a 12-member board of directors.
c)
is made up of district banks that operate independently from one another.
15.
Fee charged to borrow money
a)
Inflation
b)
Interest
c)
Discount rate
d)
Reserve requirement
16.

Which is a TRUE statement about banks.

a)

Limited Losses if your debit card disappears.

b)

The Federal Deposit Insurance Corporation (FDIC) insures customers’ money.

c)

Deposits are insured by the National Credit Union Administration (NCUA).

17.

Credit Unions are not-for-profit organizations

a)

True

b)

False

18.

Which types of banks can you name? (Pick 3)

a)

Central bank

b)

Investment bank

c)

Non-profit bank

d)

Commercial bank

19.

What of the following is true? A bank... (Pick 4)

a)

is a financial institution

b)

is a financial intermediary

c)

is a private business and is not regulated

d)

connects customers that have capital deficits to customers with capital surpluses

e)

accepts deposits and channels those deposits into lending activities

20.
What is  characteristic of a credit union?
a)
Open to anyone
b)
Membership qualifications
c)
No physical locations
d)
Non-profit
21.
Does location affect your choice of depository institution? 
a)
No
b)
Yes
22.
Which of these services do depository institutions offer?
a)
Financial advice
b)
Free money
c)
Ability to take more money than you have without penalty
23.
What is a debit card?
a)
Plastic card that used to connect to bank accounts
b)
Plastic card only used with specific stores
c)
Used to borrow money like a credit card
24.
An ATM can allow you to...
a)
Access and transfer money
b)
Order goods online
c)
Speak with others around the world
d)
Pay money directly to your boss
25.
What is contactless payment?
a)
Transaction completed where you don't use your hands
b)
Transaction with no physical connection to the person being paid
c)
Payment made where no people are contacted
d)
Payment where money is not used