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Money & Banking Practice Quiz

Total questions: 18

Worksheet time: 56mins

Name
Class
Date
1.
"The Fed" refers to the....
a)
Federal Bureau of Investigation
b)
Federal Government
c)
Federal Reserve System
d)
Federal Income Tax
2.
Fee charged to borrow money
a)
Inflation
b)
Interest
c)
Discount rate
d)
Reserve requirement
3.
What does Inflation do to the value of money?
a)
Makes it go up.
b)
Makes it go down.
c)
Makes it stay the same.
4.
In a recession, the Fed would likely
a)
Increase the supply of money in the economy
b)
Decrease the supply of the money in the economy
5.

Coins and paper bills make up the _____ of the United States.

a)

barter

b)

currency

c)

debt

6.

The _____ is the central bank of the United States.

a)

Financial institutions

b)

Federal Reserve System

c)

District Banks

7.

Anything that's accepted in exchange for goods & services.

a)

Currency

b)

Money

c)

Liquidity

d)

Deferred Payment

8.

A certain % of checkable deposits that banks keep on reserve.

a)

Reserve Requirement

b)

Excess Reserves

c)

Savings

d)

Fractional Reserve

9.

What is the primary function of the Federal Reserve?

a)

To collect taxes

b)

To insure deposits

c)

To manage the nation's money supply

d)

To provide loans to the public

10.

What happens when there is a decrease in the reserve requirement?

a)

Banks have less money to lend.

b)

Banks have more money to lend.

c)

The value of the currency increases.

d)

The interest rates automatically increase.

11.

Inflation has (slowly) over time affected this coffee. What happened?

a)

The coffee got less expensive.

b)

There is more coffee now.

c)

There is less coffee now.

d)

The price of coffee has gone up.

12.

What happens when there is too much money and too few goods/products?

a)

Prices go lower?

b)

Recession

c)

economics

d)

inflation

13.

A payment card that deducts money directly from your checking account to pay for a purchase.

a)

Debit Card

b)

Credit Card

c)

ATM

d)

Checkbook

14.

A record of your money habits that looks at your past behavior, taking into consideration unpaid bills, debts, and accounts open. A score is given to a bank to indicate if you are likely to pay back money loaned.

a)

Bank statement

b)

Credit Score

c)

Late fee

d)

Overdraft

15.

A deposit bank account that lets you securely store funds while also earning interest. You can deposit your money at your bank through cash, check or bank transfer, and it will safely earn interest while it is in your account.

a)

ATM

b)

Debit Card

c)

Checking Account

d)

Savings Account

16.

The act of taking out money from a bank.

a)

Checking account

b)

Deposit

c)

Withdrawal

d)

Savings account

17.

The act of putting money (cash or check) into a bank.

a)

Debit card

b)

Checkbook

c)

Withdrawal

d)

Deposit

18.

An account used for every day financial transactions or quick access to cash. Enables check-writing, use of debit card, and access to ATMs.

a)

Checking account

b)

Savings account

c)

Deposit

d)

Withdrawal