Trắc nghiệm chương 1: Nguyên lý tiền tệ | Môn Tài chính tiền tệ - Đại học Cần Thơ

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Multiple-Choice Questions (MCQ) - Chapter 1: Money
1. What are the functions of money? A. Medium of exchange B. Unit of account C. Store of value D. All of the above
2. What is the difference between "currency" and "money"?
A. Currency is physical cash, while money includes bank deposits.
B. Currency represents a person’s total financial assets.
C. Currency exists only in electronic form.
D. Currency has a higher value than money.
3. How does wealth differ from income?
A. Wealth measures total accumulated assets, while income is the flow of money earned over a specific period.
B. Wealth only considers cash, while income includes all sources of earnings.
C. Wealth refers to money received monthly, while income represents assets held.
D. There is no difference between wealth and income.
4. In a barter system, when do transactions occur?
A. When a widely accepted medium of payment exists.
B. When both parties find goods that they mutually want to exchange.
C. When the government sets prices for goods.
D. When banks approve the transactions.
5. What are transaction costs?
A. The amount paid when purchasing a product.
B. The time and effort required to complete a transaction.
C. Bank fees for withdrawing cash from an ATM.
D. Taxes applied to each commercial transaction.
6. What qualities must a commodity have to become money?
A. Easily recognizable, divisible, durable, and has intrinsic value.
B. Rare, hard to counterfeit, and only valuable in the short term. lOMoAR cPSD| 58504431
C. Only accepted in a specific country.
D. Perishable and difficult to transport.
7. When money is used to purchase goods or services, which function does it serve? A. Medium of exchange B. Unit of account C. Store of value D. Measure of value
8. Which market has the highest liquidity? A. Real estate B. Stocks C. Cash D. Bonds
9. What is a weakness of paper currency?
A. It loses value due to inflation.
B. It is vulnerable to theft, counterfeiting, and costly to use in large transactions.
C. It cannot be used in international transactions.
D. It only has value within the banking system.
10. What financial instrument was introduced to overcome the disadvantages of paper currency? A. Coins B. Checks C. Gold D. Cryptocurrency
11. What was the first form of e-money? A. Cryptocurrency B. Debit cards C. Credit cards D. Electronic wallets
12. What are common forms of e-money today? A. Credit cards, prepaid cards, electronic wallets B. Only cryptocurrency C. Electronic gold and silver lOMoAR cPSD| 58504431 D. Digitized cash
13. Which asset is included in M1 in the money supply measurement?
A. Cash, checking account deposits
B. Savings deposits, certificates of deposit C. Government bonds D. Stocks
14. Which asset is included in M2 but not in M1? A. Cash
B. Savings deposits and money market funds C. Coins D. Demand deposits
15. Why is M2 larger than M1?
A. Because M2 includes all components of M1 plus savings deposits and money market funds.
B. Because M1 is no longer widely used.
C. Because M2 consists only of paper money and coins.
D. Because M2 does not include bank deposits.
16. What is the biggest problem in a barter system?
A. Lack of agreement on the value of goods
B. The need for a double coincidence of wants C. No means of payment
D. Inability to exchange goods
17. When a person deposits money into a savings account at a bank, which category does it belong to? A. M1 B. M2 C. Both M1 and M2
D. None of the money supply categories
18. Why does money serve as a unit of account? A. Because it has intrinsic value like gold or silver lOMoAR cPSD| 58504431
B. Because it helps measure and compare the value of goods and services
C. Because it can be stored for a long time
D. Because it helps prevent inflation
19. Which type of money has the highest liquidity? A. Stocks B. Cash C. Long-term bonds D. Gold
20. Which characteristic describes fiat money? A. It has intrinsic value based on precious metals
B. It is legally recognized as a medium of exchange by the government
C. It is backed by gold and silver
D. It cannot be affected by inflation
21. What is the main difference between a credit card and a debit card?
A. A debit card uses existing funds in an account, while a credit card allows borrowing before repayment
B. A credit card can be used for cash withdrawals, while a debit card cannot
C. A credit card is only accepted for international transactions
D. A debit card cannot be used for online payments
22. What is one main advantage of e-money? A. It never loses value
B. It reduces transaction costs and is more convenient than cash
C. It cannot be stolen or subject to fraud
D. Only the government can issue e-money
23. If a person holds cash instead of depositing it in a bank, how does this affect the economy?
A. Increases liquidity in the economy
B. Reduces the money supply within the banking system C. Has no impact D. Decreases inflation
24. Why do commercial banks prefer deposits over cash? lOMoAR cPSD| 58504431
A. Because deposits help banks generate profit through lending activities
B. Because cash has no value in the financial system
C. Because cash is harder to manage than deposits
D. Because deposits cannot lose value
25. When a person purchases life insurance, which function of money is being utilized? A. Medium of exchange B. Store of value C. Unit of account D. Measure of value
26. What is the key difference between commodity money and fiat money?
A. Commodity money has intrinsic value, while fiat money derives its value from government regulation
B. Fiat money can be exchanged for gold or silver
C. Commodity money is only used in international trade
D. Fiat money is not controlled by central banks
27. When a company lists product prices in money, what role does money play? A. Medium of exchange B. Unit of account C. Store of value D. Investment tool
28. What happens when the government prints too much money beyond the actual economic demand? A. Inflation rises
B. Money becomes more valuable C. Unemployment drops sharply
D. The banking system collapses
29. Which is not an advantage of e-money compared to cash?
A. Faster and more convenient transactions
B. Easier tracking and expense management C. Cannot be hacked or stolen
D. Reduces cash-handling costs lOMoAR cPSD| 58504431
30. Why does money function as a store of value?
A. Because it retains value over time and can be used in the future
B. Because it is unaffected by inflation
C. Because it appreciates in value over time
D. Because it can completely replace other assets
31. What makes money a more efficient medium of exchange than the barter system? A. Money has a fixed value
B. Money eliminates the need for a double coincidence of wants
C. Money is not affected by inflation
D. Money can be used in any country
32. One reason money is widely used is because of which characteristic? A. Divisibility B. Cannot be counterfeited C. Can be created infinitely
D. Does not lose value over time
33. Which of the following has the highest liquidity? A. Savings account B. Cash C. Government bonds D. Stocks
34. When a company lists product prices in monetary units, what function of money is
being used? A. Medium of exchange B. Unit of account C. Store of value D. Investment tool
35. When money loses value rapidly, which function of money is most affected? A. Medium of exchange B. Unit of account C. Store of value D. Measure of value lOMoAR cPSD| 58504431
36. When a person deposits money into a savings account, how does this affect the
liquidity of money? A. Increases liquidity B. Decreases liquidity C. No impact
D. Converts money into another type of asset
37. Which of the following is NOT included in M1? A. Cash B. Checking deposits C. Savings deposits D. Coins
38. If an asset has high liquidity, what does this mean?
A. The asset can be easily converted into cash without losing value
B. The asset has a higher value than other assets
C. The asset is not affected by inflation
D. The asset can only be used within a bank
39. What is the main difference between paper currency and commodity money?
A. Paper currency is backed by the government, while commodity money has intrinsic value
B. Commodity money is only used in international transactions
C. Paper currency cannot lose value
D. Commodity money can be created infinitely
40. Why is a credit card not included in the M1 money supply?
A. Because a credit card is not money but a borrowing tool
B. Because a credit card is only accepted at certain stores
C. Because a credit card has no transaction value
D. Because money on a credit card cannot be used for payments
41. What happens if a country prints too much money without control? A. Inflation rises
B. Money becomes more valuable C. People become wealthier D. The economy grows stronger lOMoAR cPSD| 58504431
42. When a bank issues a check to a customer, how does this reduce a disadvantage of paper money? A. Prevents theft B. Reduces storage difficulty
C. Solves the issue of intrinsic value
D. Enables international transactions
43. How is an electronic wallet different from a credit card?
A. An electronic wallet can store money directly without a bank account
B. An electronic wallet cannot be used for online payments
C. An electronic wallet is only valid domestically
D. An electronic wallet cannot be lost or stolen
44. When a country uses gold as currency, what system is this an example of? A. Fiat money B. Commodity money C. Electronic money D. Legal tender
45. When a person keeps money in a savings account for future use, what function of
money is being used? A. Medium of exchange B. Unit of account C. Store of value D. Investment tool
46. How can a country control the money supply? A. Adjusting interest rates B. Issuing more credit cards
C. Reducing personal income tax
D. Increasing the number of cashless payment locations
47. When a person uses money to measure the value of a car, what function of money is
being applied? A. Medium of exchange B. Unit of account C. Store of value D. Investment tool lOMoAR cPSD| 58504431
48. What is an example of commodity money in history? A. Paper currency B. Cryptocurrency C. Gold and silver D. Fiat money
49. Why is M2 larger than M1?
A. Because M2 includes M1 and less liquid assets
B. Because M1 is no longer widely used
C. Because M2 only includes cash
D. Because M2 does not include bank deposits
50. What is the biggest advantage of electronic money compared to cash?
A. Faster and more secure transactions
B. Cannot be stolen or subject to fraud C. Not affected by inflation
D. Usable in any country without conversion
51. Minh has a 500,000 VND bill. He uses it to buy a shirt. What function of money is being used? A. Medium of exchange B. Unit of account C. Store of value D. Measure of value
52. Lan deposits 50 million VND into a fixed-term savings account at a bank. According
to money supply classifications, this money belongs to which group? A. M1 B. M2 C. Both M1 and M2
D. Not part of the money supply
53. Company A decides to list product prices on its website in VND instead of USD.
This is an example of which function of money? A. Medium of exchange B. Unit of account lOMoAR cPSD| 58504431 C. Store of value D. Investment tool
54. When inflation rises, people tend to store wealth in gold instead of cash. This shows
an impact on which function of money? A. Medium of exchange B. Measure of value C. Store of value D. Unit of account
55. When foreign tourists come to Vietnam, they need to exchange USD for VND to
spend. This illustrates which role of money? A. Medium of exchange B. Unit of account C. Investment tool D. Both A and B
56. A business holds a large amount of money in a safe instead of investing or depositing
it in a bank. What could this lead to? A. Slower money circulation
B. Increased money supply in the economy C. Reduced transaction costs D. Higher inflation rates
57. An has a large sum of money and is deciding between keeping cash or depositing it
in a bank. If his goal is to maintain the value of his assets over time, what should he do? A. Keep cash at home
B. Deposit into a savings account or invest
C. Exchange for foreign currency and hold as cash
D. Only use money when absolutely necessary
58. When using electronic wallets like MoMo or ZaloPay to pay bills, users are taking
advantage of what benefit of digital money? A. Lower transaction costs and increased convenience
B. No need for an internet connection to transact lOMoAR cPSD| 58504431
C. Protection against inflation
D. Universal usability without currency conversion
59. When banks provide credit card services to customers, how does this affect the
amount of money in the economy?
A. Increases total circulating money due to credit creation
B. Reduces money supply as people use less cash
C. Has no effect since credit cards are not included in the money supply
D. Reduces liquidity in the banking system
60. What can the government do to control inflation caused by excessive money supply?
A. Raise interest rates to reduce borrowing and spending
B. Print more money to cover budget deficits
C. Encourage people to hold more cash
D. Lower income taxes to stimulate consumption
61. When a company pays employee salaries through bank transfers instead of cash,
how does this impact the liquidity of the economy? A. Decreases liquidity as money is no longer in cash form
B. Increases liquidity as money can be easily transferred and used for online payments
C. Has no effect since money is still used for spending D. Reduces M1 money supply
62. If the central bank wants to stimulate the economy by increasing the money supply,
what action can it take?
A. Lower interest rates to encourage borrowing and spending
B. Raise interest rates to control credit
C. Increase reserve requirements for commercial banks
D. Restrict the licensing of new banks
63. When consumers shift from using cash to non-cash payment methods like bank
cards or e-wallets, how does this impact the economy? A. Speeds up money
circulation, boosting economic growth
B. Reduces demand for commercial banks
C. Decreases money supply in the economy
D. Causes inflation as people spend more lOMoAR cPSD| 58504431
64. If a country's currency depreciates rapidly against strong foreign currencies like
USD or EUR, what can people do to protect their assets?
A. Convert money into gold or foreign currency
B. Hold more cash to avoid devaluation
C. Stop using banks and trade directly with goods
D. Only use money for domestic transactions
65. If a country eliminates cash entirely and only uses digital money, what could happen?
A. Reduces the risk of counterfeiting
B. Increases government control over financial transactions
C. Creates difficulties for those without access to technology D. All of the above
66. Why are many fintech companies developing cashless payment platforms?
A. To increase transaction speed and reduce operational costs
B. To avoid central bank regulations
C. To completely replace traditional banking systems
D. To drive inflation and stimulate the economy
67. In a modern economy, how can money be defined?
A. Anything that can be exchanged B. Any asset that has value
C. Anything widely accepted as a means of payment for goods and services
D. Any financial instrument issued by banks
68. Which function of money helps compare the value of different goods and services easily? A. Medium of exchange B. Unit of account C. Store of value D. Investment tool
69. Why is money considered a more efficient medium of exchange than the barter system? lOMoAR cPSD| 58504431
A. It facilitates quicker and more convenient transactions
B. It reduces transportation costs of goods
C. It lowers the value of exchanged goods
D. It allows the government to control the economy better
70. A commodity can be used as currency if it meets which of the following criteria?
A. Easily portable, durable, and has intrinsic value B. Can be directly consumed
C. Can only be used for internal transactions
D. Its value continuously increases over time
71. What is the key difference between "currency" and "money"?
A. Currency includes only physical cash (coins and banknotes), while money includes bank deposits
B. Currency includes all financial assets
C. Money includes only cash in circulationD. Currency cannot be used as a medium of exchange
72. How does "wealth" differ from "income"?
A. Wealth is the total value of assets, while income is the flow of earnings over time
B. Wealth includes only cash, while income includes all assets
C. Income is measured annually, while wealth is calculated over the long term
D. Wealth refers to readily available cash for immediate use
73. What is the most common type of money in modern monetary systems? A. Commodity money B. Fiat money C. Electronic money D. Precious metal money
74. Why does fiat money have value despite lacking intrinsic value? A. It is legally
recognized as a means of payment by the government
B. It is made from precious metals
C. It can be converted into gold
D. It is backed by the central banking system
75. What does "transaction costs" in the economy refer to? lOMoAR cPSD| 58504431
A. Costs associated with carrying out an economic transaction B. Costs of producing goods
C. Taxes on commercial transactions
D. Costs of maintaining cash in circulation
76. Why do modern economies not use commodity money like gold or silver as the
primary means of payment?
A. Fiat money is easier to regulate and control by central banks
B. Commodity money depreciates easily
C. Fiat money has a higher value than gold
D. Commodity money cannot be used for international transactions
77. What characteristic makes money an effective store of value?
A. Durable and resistant to damage
B. Always increases in value over time C. Has an unlimited supply D. Unaffected by inflation
78. If a country experiences hyperinflation, what happens to the function of money?
A. Money loses its ability to store value
B. Money still retains its unit of account function
C. Money becomes more valuable due to scarcity
D. All functions of money remain unaffected
79. What is the biggest disadvantage of paper currency compared to digital money?
A. It is prone to theft and costly to transact B. It has no intrinsic value
C. It cannot be used for international transactions
D. It cannot be controlled by banks
80. When using a debit card, where is the money deducted from? A. The user’s bank account
B. The bank’s credit account C. A loan from the bank
D. A government cash reserve fund
81. Why is a credit card NOT included in the M1 money supply? lOMoAR cPSD| 58504431
A. It is a borrowing tool, not an actual monetary asset
B. It cannot be used for payments
C. It has no transactional value
D. It can only be used domestically
82. What is the key difference between M1 and M2?
A. M2 includes M1 and less liquid assets
B. M1 includes all financial assets
C. M2 consists only of physical cash
D. M2 is used only for large transactions
83. What advantage does e-money (electronic money) have over cash?
A. Convenience, lower transaction costs, and increased security B. Not affected by inflation C. Fixed value over time
D. Can fully replace paper money
84. What can an expansionary monetary policy do to the money supply?
A. Increase the money supply in the economy B. Decrease the money supply
C. Stabilize prices without affecting the money supply
D. Increase foreign exchange reserves