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WorksheetsMoney and Kenyan Currency
Total questions: 30
Worksheet time: 23mins
Which statement best defines money in an economy?
A personal store of household belongings
A government list of regulated prices
A legal document for recording purchases
A standardized medium for exchanging goods
What primary role does money play in everyday transactions?
Tool for advertising business promotions
Record of employment and wages received
Guarantee of product quality and safety
Medium of exchange for goods and services
Which statement about value of goods and services is accurate?
Prices are fixed by a single authority
Services always cost less than goods
All goods share equal market prices
Different items have different monetary values
Which set lists only Kenyan shilling note denominations currently issued?
1, 5, 10, 20, 100
5, 10, 20, 50, 500
10, 20, 50, 100, 200
50, 100, 200, 500, 1000
Which set lists only Kenyan shilling coin denominations currently in use?
10, 20, 100, and 200
1, 2, 10, and 50
5, 20, 50, and 100
1, 5, 10, and 20
Which statement best describes security features on banknotes?
Optional designs added by retailers
Extra ink used to brighten colours
Decorative patterns for visual appeal
Special elements that deter counterfeiting
Why are security features important during transactions?
They extend the physical note’s size
They help verify authenticity of money
They allow discounts on purchases
They increase the note’s artistic value
How does the security thread appear when viewed on Kenyan bank notes?
As a broken ribbon
As dotted segments
As a faded band
As a continuous line
When tilted, the security thread on Kenyan bank notes changes colour in which way?
From red to green
From blue to red
From gold to black
From green to violet
What does the golden band on the back of Kenyan notes indicate?
The value of the note
The year of issue
The note’s serial area
The printing location
Which theme is associated with the 100 shilling Kenyan note?
Transport hubs
Digital economy
Security services
Agriculture focus
Which theme is associated with the 500 Kenyan shilling note, as indicated by imagery on the note?
Manufacturing with factories and tools
Governance featuring parliament building
Agriculture and cash crops imagery
Tourism with beach, wildlife, lion
The 200 Kenyan shilling note highlights which theme through symbols like medical services, education, and athletics?
Governance and parliamentary oversight
Tourism and coastal recreation
Social service and community welfare
Industrialization and export growth
What theme is conveyed by the 1000 Kenyan shilling note through the depiction of parliament?
Agriculture and rural development
Education and training initiatives
Tourism and natural attractions
Governance and national leadership
Supply of money best refers to which description?
Wealth stored in banks for decades
Income earned by households each month
Government revenue collected from taxes
Total money in circulation over a period
Which institution regulates Kenya’s money supply to support activity without triggering inflation?
National Treasury of Kenya
Kenya Bankers Association
Central Bank of Kenya (CBK)
Parliamentary Finance Committee
Why is regulating the money supply important for an economy?
To ensure enough money without high inflation
To replace all coins with digital wallets
To fix exchange rates with all neighbors
To eliminate private banking competition
Who issues paper currency and coins in Kenya?
County governments and cooperatives
Foreign mints contracted by firms
The government through the CBK
Private commercial banks independently
Which pairing correctly matches a Kenyan note with its theme and indicator?
500 shilling—governance—parliament
200 shilling—social service—medical icons
1000 shilling—tourism—beach and wildlife
200 shilling—agriculture—tea plantations
Which action during open market operations most directly increases the money supply?
Central bank sells government securities to investors
Commercial banks tighten mortgage lending standards
Central bank buys government securities from dealers
Government raises consumption taxes across sectors
Government expenditure typically affects money supply by
absorbing liquidity and shrinking private deposits
injecting funds that raise circulating money amounts
shifting resources without altering monetary flows
neutralizing bank credit through sterilization only
If the central bank sells a large volume of government bonds in the stock exchange, the immediate effect is most likely
expanded bank reserves and rapid credit growth
unchanged liquidity with higher long‑run inflation
increased household saving through fiscal transfers
reduced reserves and a contracting money supply
When banks ease lending standards and extend more loans, the money supply generally
expands as deposit creation accelerates
contracts because cash leaves circulation
remains unchanged due to offsetting taxes
shrinks unless paired with lower deficits
Lower interest rates tend to
reduce exports, tightening domestic money supply
encourage borrowing, boosting spending and money
only affect savings accounts, not money supply
discourage investment, lowering credit and money
A country running exports greater than imports will most directly experience
falling reserves despite trade surpluses
unchanged monetary conditions without flows
net outflows that reduce bank liquidity
net inflows that increase domestic money
A lender advertises a low interest rate but adds undisclosed processing charges later. Which ethical principle is violated?
Transparency in pricing and terms
Responsible borrowing practices
Accurate record-keeping standards
Fair pricing of goods and services
Which scenario demonstrates fair pricing?
Applying hidden fees after purchase
Charging consistent rates justified by costs
Raising prices sharply during emergencies
Setting prices based on buyer’s ignorance
Which action best defines money laundering in financial crimes?
Printing extra legal tender to boost circulation
Offering small gifts to appreciate good service
Charging slightly higher prices during high demand
Hiding illegal funds by making them appear legitimate
A company pays a public official to secure a contract. Which unethical practice is illustrated?
Money laundering to clean profits
Counterfeiting for faster payments
Overpricing to increase revenue
Bribery to influence decisions
Using fake money to buy goods and services is best described as which offense?
Bribery to bypass regulations
Laundering through shell companies
Overpricing in competitive markets
Counterfeiting and passing forged currency
