In economics Credit Money refers to a future monetary claims or financial requirement by an individual or organization. who had buy or purchased the goods and services on credit facility. Means they buy the goods and services now and pay the value in future in installments. Credit money is monetary value created as the result of some future obligation or claim.
Here is some MCQs on the credit money.
Let’s start the Quiz/MCQ
01) In economics the money which refers to a future monetary claims are called ____________.
A) Commodity Money
B) Fiat Money
C) Credit Money
D) Fiduciary Money
Correct answer is option “C”.
02) Is this statement true or false “Credit money is monetary value created as a result of a future obligation or claim.”
A) True
B) False
Correct answer is option “A”.
03) Which of the following money has emerged from the extension of credit or issuance of debt.
A) Fiat Money
B) Credit Money
C) Fiduciary Money
D) Commodity Money
Correct answer is option “B”
04) In this modern banking system the commercial banks are able to create credit money by issuing loans in greater amounts than their_______. Fill in the blank with suitable option.
A) Reserves.
B) Loan
C) Deposit
D) Beyond their credit power
Correct answer is option “A”
05) Which of the following is not the example of credit money?
A) IOUs,
B) Saving
C) Bonds
D) Money Markets.
Correct answer is option “B”
06) Whether is it ture that the commercial bank or financial instrututes build their credit money protfolio through car loans, mortgages, personal loans, and lines of credit.
A) Yes True
B) No, not true
Correct answer is option “A”
07) Any form of financial instrument that cannot or is not meant to be repaid immediately can be construed as a form of _____________.
A) Fiat Money
B) Fiduciary Money
C) Commodity Money
D) Credit Money
Correct answer is option “D”
08) The _____________ is the creation of monetary value through the establishment of future claims or debts.
A) Credit Money
B) Fiat Money
C) Fiduciary Money
D) Commodity Money
Correct answer is option “A”
09) The claims or debts of Credit Money can be transferred to other parties in exchange for the value embodied in these claims. Can is it possible.
A) Not possible
B) Yes possible
Correct answer is option “B”
Try more MCQ’s…….
Classification of money
Paper Money
Representative Money
Full Bodied money
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Wish you all the best for a brightest future.