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JAIIB Money and Banking — practice questions

Explore 30 free Money and Banking questions in JAIIB Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Money and Banking questions and exercises with answers

Showing questions 1–30 of 30.

A village trades grain directly for cloth with no cash involved. That system is:Read the answer and worked solution →Barter makes it hard to agree deals for later delivery. It does not allow easy:Read the answer and worked solution →An accountant is paid in cash and buys shoes with it. Money here acts as a:Read the answer and worked solution →A worker saves notes in a safe for next year. Money here acts as a:Read the answer and worked solution →Prices for a car and a shirt can be compared directly in rupees. Money here acts as a:Read the answer and worked solution →A loan says pay back in three years in cash. Money here is a standard of:Read the answer and worked solution →Gold is useful as jewellery as well as for buying things. That makes gold a:Read the answer and worked solution →A paper note has no value in itself but a government declares it legal tender. That is:Read the answer and worked solution →Economists use how many main definitions of the money supply, M1 and M2?Read the answer and worked solution →M1 now covers cash, savings and which kind of deposit?Read the answer and worked solution →Certificates of deposit and money market funds are counted inside:Read the answer and worked solution →A bank must hand over a demand deposit when asked. That is why it is called a deposit on:Read the answer and worked solution →Comparing the two measures, M1 is:Read the answer and worked solution →How fast a financial asset can be turned into a purchase is called its:Read the answer and worked solution →A credit card purchase is not counted as money. It is treated as a short term:Read the answer and worked solution →A bank sits between savers who deposit and borrowers who take loans. It is a financial:Read the answer and worked solution →A cooperative takes deposits from its members and lends back to those members. It is a:Read the answer and worked solution →An accounting tool listing what a firm owns and owes is a:Read the answer and worked solution →Something of value you own and can use to produce is called an:Read the answer and worked solution →Net worth is found by taking the asset value and subtracting the:Read the answer and worked solution →A simple two sided ledger shaped like a letter is known as a:Read the answer and worked solution →When a bank holds far more than its required reserves, the extra is called:Read the answer and worked solution →Catch the money jobsRead the answer and worked solution →Pop the M1 itemsRead the answer and worked solution →Run the money gatesRead the answer and worked solution →Slice the banking wordsRead the answer and worked solution →Owns or owesRead the answer and worked solution →Sort the money ideasRead the answer and worked solution →Type the numberRead the answer and worked solution →Money and banking bingoRead the answer and worked solution →

Worked practice questions

A village trades grain directly for cloth with no cash involved. That system is:

  1. Barter
  2. Barrel
  3. Batten
  4. Bantam
Show answer and solution

Correct answer: A. Barter

1. No money changes hands. 2. Goods are swapped for other goods. 3. That system is barter. _Source: OpenStax Principles of Macroeconomics 3e, Chapter 14, Money and Banking._

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Barter makes it hard to agree deals for later delivery. It does not allow easy:

  1. Freight charges
  2. Future contracts
  3. Festive discounts
  4. Foreign accounts
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Correct answer: B. Future contracts

1. Each side must want the other's goods now. 2. Agreeing on later terms is awkward. 3. So future contracts are hard. _Source: OpenStax Principles of Macroeconomics 3e, Chapter 14, Money and Banking._

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An accountant is paid in cash and buys shoes with it. Money here acts as a:

  1. Medium of exchange
  2. Measure of distance
  3. Marker of ownership
  4. Method of storage
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Correct answer: A. Medium of exchange

1. Money sits between the two trades. 2. It moves value from one deal to the next. 3. That is a medium of exchange. _Source: OpenStax Principles of Macroeconomics 3e, Chapter 14, Money and Banking._

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