Start learning →

M.Com Banking & Insurance Economics — practice questions

Explore 30 free Economics questions in M.Com Banking & Insurance Finance. Open each question or exercise to read its content, reference answers and available explanation.

Practise Economics with Quill →

Economics questions and exercises with answers

Showing questions 1–30 of 30.

Money is best defined as anything that is acceptable as payment for goods and:Read the answer and worked solution →Money must be scarce enough to have value but not so scarce as to be:Read the answer and worked solution →Too much money in circulation pushes up prices and causes:Read the answer and worked solution →Fruit and vegetables would fail as money because they lack:Read the answer and worked solution →Money must be capable of being split into smaller parts, a property called:Read the answer and worked solution →The number of functions money must perform to be acceptable is:Read the answer and worked solution →When money is used simply to make transactions easier, it acts as a:Read the answer and worked solution →When money is kept for future use rather than spent today, it acts as a:Read the answer and worked solution →Cash held as coins and paper money is called:Read the answer and worked solution →Money kept in checking accounts and withdrawable on demand forms:Read the answer and worked solution →Deposits that pay interest but cannot be withdrawn on demand are:Read the answer and worked solution →The measure covering currency plus demand deposits is called:Read the answer and worked solution →The measure that adds time deposits and less accessible money to M1 is:Read the answer and worked solution →The central bank of the United States, created in 1913, is the:Read the answer and worked solution →The most important function of the Federal Reserve System is carrying out:Read the answer and worked solution →The number of tools the Federal Reserve uses to manage the money supply is:Read the answer and worked solution →When the Federal Reserve buys government bonds, the effect on the economy is that it:Read the answer and worked solution →The Federal Reserve is nicknamed the banker's bank because it lends money to:Read the answer and worked solution →The interest rate the Federal Reserve charges its member banks is the:Read the answer and worked solution →Banks make a profit on the difference between what they charge customers and pay the Fed, called the:Read the answer and worked solution →The Federal Reserve raises the discount rate in order to:Read the answer and worked solution →Federal Reserve notes make up more than what share of United States currency?Read the answer and worked solution →Catch the money qualitiesRead the answer and worked solution →Pop the money functionsRead the answer and worked solution →Run the banking gatesRead the answer and worked solution →Slice the banking termsRead the answer and worked solution →Adds money or removes itRead the answer and worked solution →Sort the money ideasRead the answer and worked solution →Type the numberRead the answer and worked solution →Money bingoRead the answer and worked solution →

Worked practice questions

Money is best defined as anything that is acceptable as payment for goods and:

  1. Services
  2. Salaries
  3. Supplies
  4. Shipments
Show answer and solution

Correct answer: A. Services

1. Money must be taken in exchange by others. 2. It buys both physical things and work done. 3. So it pays for goods and services. _Source: OpenStax Introduction to Business 2e, Chapter 15, Understanding Money and Financial Institutions._

Open this question →

Money must be scarce enough to have value but not so scarce as to be:

  1. Unbearable
  2. Unavailable
  3. Unbreakable
  4. Uncountable
Show answer and solution

Correct answer: B. Unavailable

1. Small rocks would fail as money because they are everywhere. 2. Something too rare cannot circulate at all. 3. So it must not be unavailable. _Source: OpenStax Introduction to Business 2e, Chapter 15, Understanding Money and Financial Institutions._

Open this question →

Too much money in circulation pushes up prices and causes:

  1. Inflation
  2. Insulation
  3. Innovation
  4. Inspection
Show answer and solution

Correct answer: A. Inflation

1. More money chasing the same goods raises prices. 2. That general rise has a name. 3. It is inflation. _Source: OpenStax Introduction to Business 2e, Chapter 15, Understanding Money and Financial Institutions._

Open this question →

How to practise

  1. Choose a Economics question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Finance topics

BankingBanking CertificationFinanceMoney and BankingMoney and Financial Institutions