Money and the Monetary System Quiz

Test your knowledge on money and the monetary system with questions on functions, central banks, inflation, and economic terms. How well do you understand monetary economics?

#1

Which of the following is NOT a function of money?

Medium of exchange
Unit of account
Store of labor
Standard of deferred payment
1 answered
#2

What is the term for the total amount of money circulating in the economy?

Gross Domestic Product (GDP)
Money supply
Inflation rate
Interest rate
1 answered
#3

What is the term for the rate at which the general level of prices for goods and services is rising?

Interest rate
Deflation
Inflation
Nominal rate
1 answered
#4

Which type of money has intrinsic value?

Fiat money
Commodity money
Electronic money
Fractional-reserve money
1 answered
#5

What is the term for the interest rate at which a nation's central bank lends money to domestic banks?

Prime rate
Federal funds rate
Discount rate
LIBOR rate
1 answered
#6

Which of the following is NOT a characteristic of money?

Durability
Portability
Scarcity
Subjectivity
1 answered
#7

Who typically controls the money supply in a modern economy?

Government
Banks
Corporations
International organizations
1 answered
#8

What is the main function of the Federal Reserve System in the United States?

Regulating international trade
Issuing currency
Controlling inflation
Managing the money supply
1 answered
#9

In the context of banking, what does the acronym 'FDIC' stand for?

Federal Deposit Insurance Corporation
Federal Debt Insurance Commission
Financial Depository Insurance Corporation
Fiscal Depository Insurance Commission
1 answered
#10

What is the term for a situation in which prices increase rapidly as a currency loses its value?

Hyperinflation
Stagflation
Deflation
Disinflation
1 answered
#11

What is the name of the currency used in Japan?

Dollar
Yuan
Euro
Yen
1 answered
#12

Which economic term refers to the total market value of all final goods and services produced within a country in a given period of time?

Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
Net National Product (NNP)
1 answered
#13

Which economic theory advocates for the use of monetary policy to control the economy?

Keynesian economics
Monetarism
Classical economics
Austrian economics
1 answered
#14

What is the name for the process of increasing the amount of money in circulation or expanding credit?

Fiscal policy
Monetary policy
Quantitative easing
Austerity measures
1 answered
#15

What is the term for a situation where prices for goods and services rise, but wages do not keep pace, resulting in a decrease in purchasing power?

Inflation
Deflation
Stagflation
Hyperinflation
1 answered
#16

Which term describes the situation where a country's imports exceed its exports, resulting in a negative balance of trade?

Trade surplus
Trade deficit
Trade balance
Current account surplus
1 answered
#17

What is the term for a situation where the value of a currency declines relative to other currencies?

Depreciation
Appreciation
Revaluation
Devaluation
1 answered

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