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ACCA Professional Economics — practice questions

Explore 27 free Economics questions in ACCA Professional Banking. Open each question or exercise to read its content, reference answers and available explanation.

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Economics questions and exercises with answers

Showing questions 1–27 of 27.

A shopper hands over notes rather than swapping goods directly. Money is working here as a:Read the answer and worked solution →A saver keeps cash for months and expects it still to buy something later. Money is serving as a:Read the answer and worked solution →Prices in a shop are all quoted in the same currency, letting buyers compare them. Money is acting as a:Read the answer and worked solution →A loan lets someone buy today and pay later. That function of money is the standard of:Read the answer and worked solution →Without money, trade needs each side to want what the other offers. That difficulty is the double coincidence of:Read the answer and worked solution →Economists use two official definitions of the money supply. They are M2 and:Read the answer and worked solution →The broader measure contains everything in the narrower one and adds other types of:Read the answer and worked solution →Cigarettes or salt used as money still have worth for their own sake. Such money is:Read the answer and worked solution →Notes whose value rests on gold or another commodity kept at a bank are described as:Read the answer and worked solution →Silver certificates in the United States remained backed by silver until:Read the answer and worked solution →How quickly an asset can be turned into a purchase is its:Read the answer and worked solution →An institution standing between savers who deposit and borrowers who take loans is a financial:Read the answer and worked solution →An accounting tool listing what a bank owns against what it owes is a:Read the answer and worked solution →Subtracting what is owed from the value of the assets gives the:Read the answer and worked solution →In a mortgaged house, the home itself is the asset, while the mortgage is the:Read the answer and worked solution →When banks hold only the minimum reserves required, or barely more, the situation is called:Read the answer and worked solution →Across a whole banking system, the amount of money that can be created is worked out with the money:Read the answer and worked solution →The central bank of the United States, which regulates banks and runs monetary policy, is the:Read the answer and worked solution →A bank turns deposits into loans instead of merely storing them. In doing so it acts as an intermediary between savers and:Read the answer and worked solution →Catch the functions of moneyRead the answer and worked solution →Pop the balance sheet wordsRead the answer and worked solution →Run the money gatesRead the answer and worked solution →Slice the banking wordsRead the answer and worked solution →Asset or liabilityRead the answer and worked solution →Sort the money wordsRead the answer and worked solution →Type the numberRead the answer and worked solution →Money bingoRead the answer and worked solution →

Worked practice questions

A shopper hands over notes rather than swapping goods directly. Money is working here as a:

  1. Medium of exchange
  2. Method of taxation
  3. Measure of weight
  4. Mark of ownership
Show answer and solution

Correct answer: A. Medium of exchange

1. It sits between buyer and seller. 2. No goods are swapped directly. 3. It is a medium of exchange. _Source: OpenStax Principles of Economics 3e, Chapter 27, Money and Banking._

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A saver keeps cash for months and expects it still to buy something later. Money is serving as a:

  1. Store of grain
  2. Store of value
  3. Stock of goods
  4. Stack of paper
Show answer and solution

Correct answer: B. Store of value

1. Value must survive the wait. 2. That is one of money's functions. 3. It is a store of value. _Source: OpenStax Principles of Economics 3e, Chapter 27, Money and Banking._

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Prices in a shop are all quoted in the same currency, letting buyers compare them. Money is acting as a:

  1. Unit of account
  2. Unit of energy
  3. Unit of weight
  4. Unit of length
Show answer and solution

Correct answer: A. Unit of account

1. It is the ruler for measuring value. 2. Comparison is what it enables. 3. It is a unit of account. _Source: OpenStax Principles of Economics 3e, Chapter 27, Money and Banking._

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