- 1. Old notes may be called for replacement after:
A. 10 years
B. 5 years
C. 3 years
D. 2 years
A) D
B) C
C) A
D) B
- 2. Which standard uses both gold and silver?
A. Managed currency standard
B. Bimetallic Standard
C. Gold Standard
D. Fiat standard
A) A
B) B
C) D
D) C
- 3. Which family became famous bankers during the Renaissance?
A. Medici family
B. Windsor
C. Rockefeller family
D. Rothschild family
A) B
B) D
C) A
D) C
- 4. Roman coins were minted in the temple of:
A. Apollo
B. Juno Moneta
C. Zeus
D. Athena
A) A
B) D
C) B
D) C
- 5. Which law recognized the Philippine monetary and banking system by creating the Central Bank of the Philippines?
A. New Central Bank Act
B. Republic Act. No. 265(cental bank)
C. Gold Reserve Act of 1934
D. Philippine coinage Act 1903
A) B
B) A
C) C
D) D
- 6. Which Chinese ruler internalized paper money by making counterfeiting punishable by death?
A. Sun Yat-sen
B. Kublai Khan
C. Confucius
D. Shi Huangdi
A) A
B) B
C) D
D) C
- 7. Commodity money differ from Fiat money because commodity money:
A. Cannot be exchanged
B. It's issued only by banks
C. Has no market value
D. Has intrinsic value
A) B
B) C
C) D
D) A
- 8. Why did paper money become more acceptable than gold in large transaction?
A. It could not be counterfeited
B. It was made from precious metals
C. It was easier and safer to carry
D. It had higher intrinsic value
A) C
B) B
C) D
D) C
- 9. Wampum was made primarily from:
A. Copper
B. Clam shells
C. Silver
D. Gold
A) A
B) C
C) D
D) B
- 10. Which characteristic means money should be easy to recognize?
A. Stability
B. Uniform
C. Cognizability
D. Malleability
A) B
B) A
C) C
D) D
- 11. Money has that quality that it can be stored for future use.
A. Standard of payment
B. Medium of exchange
C. Standard of value
D. Store of value
A) A
B) D
C) B
D) C
- 12. The earliest banking activities were recorded in:
A. Rome
B. China
C. Egypt and Mesopotamia
D. Greece
A) B
B) D
C) C
D) A
- 13. During the early times this system was practice where one simply exchange his goods for another person's goods.
A. Barter
B. Trade
C. Credit
D. Market
A) A
B) D
C) B
D) C
- 14. The inscription "ma" on some Piloncitos is believed to refer to:
A. Mayon
B. Magellan
C. MA-I, an ancient name for the Philippines
D. Manila
A) C
B) D
C) B
D) A
- 15. The first coins minted by the Greeks were composed of:
A. Bronze
B. Electrum
C. Pure silver
D. Pure gold
A) C
B) B
C) A
D) D
- 16. What is Fiat standard?
A. A system where money is backed by gold.
B. A system where money is backed by silver.
C. A system where the face value of money is greater than the value of the material used.
D. A system using only commodity money
A) A
B) C
C) B
D) D
- 17. Which characteristic allows money to be divided into smaller units like centavos?
A. Malleability
B. Uniformity
C. Divisibility
D. Durability
A) A
B) C
C) B
D) D
- 18. Which is the following best describes the primary role of the Bangko Sentral ng Pilipinas?
A. Conduct foreign trade
B. Operate commercial bank
C. Manage the country's monetary system and issue currency
D. Collect taxes
A) D
B) C
C) A
D) B
- 19. What was the primary reason for the introduction of paper money?
A. To increase the value of gold
B. To reduce the inconvenience of carrying large amounts of gold and silver coins
C. To eliminate coins completely
D. To replace banks
A) B
B) A
C) D
D) C
- 20. Silent barter became effective because it:
A. Required written contacts
B. Used standardized prices
C. Allowed exchange without direct communication
D. Eliminated the need for trust
A) A
B) B
C) D
D) C
- 21. What is the main disadvantage of the barter system?
A. Inflation
B. Lack of money
C. High taxes
D. Double coincidence of wants
A) A
B) B
C) C
D) D
- 22. The law stating that the cheaper money tends to drive away in circulation the dearer money
A. Einstein's law
B. Gresham's law
C. Thorndike's law
D. Greyham's law
A) A
B) D
C) C
D) B
- 23. Why did King Croesus become significant in monetary history?
A. He abolished barter
B. He minted coins made of pure gold and silver
C. He introduced the first banking system
D. He invented paper money
A) C
B) B
C) A
D) D
- 24. Which of the following BEST explains why Fiat money has value
A. It's contains expensive materials
B. It is accepted by law and trusted by the public.
C. It is made of silver.
D. It is made of gold
A) C
B) D
C) A
D) B
- 25. Which feature made cowrie shells suitable as early money
A. They were made of precious metals
B. They were durable, portable, and difficult to imitate.
C. They were easy to counterfeit.
D. They were abundant everywhere.
A) A
B) B
C) D
D) C
- 26. Marco Polo's greatest contribution to Europe's monetary system was:
A. Establishing banks.
B. Inventing check
C. Reporting China's successful use of paper money.
D. Introducing gold coins
A) B
B) D
C) C
D) A
- 27. Today, Phillipine paper money is:
A. Redeemable for silver upon demand.
B. A liability by the Bangko Sentral ng Pilipinas guaranteed by the Philippine government.
C. Issued by commercial bans.
D. Backed by gold reserves only.
A) C
B) B
C) A
D) D
- 28. Which classification of money includes gold and silver because they have value other than being used as money.
A. Fiat money
B. Bank money
C. Commodity money
D. Paper money
A) A
B) C
C) D
D) B
- 29. Before coins, Filipinos commonly used which system?
A. Digital payment
B. Barter
C. Credit
D. Banking
A) D
B) A
C) B
D) C
- 30. Which book written by Adam Smith discussed the concept of trade and money?
A. Economic today
B. Capital
C. Wealth of Nations
D. The general theory
A) C
B) D
C) A
D) B
- 31. It is defined as the power of ability to possess good, service or money in exchange for a promises to pay.
A. Money
B. Obligations
C. Monetary
D. Credit
A) A
B) B
C) C
D) D
- 32. Which law established the gold content oh Philippine gold coins at 12.8 grains with 0.9 fineness.
A. Gold Reserve Act of 1934
B. Philippine coinage Act of 1903
C. Central Bank Act (R.A. 265)
D. Dollar exchange standard
A) C
B) D
C) A
D) B
- 33. Gresham's law state that:
A. Gold always replaces silver.
B. Inflation always increase money supply
C. Bad money drives good money or of circulation.
D. Valuable money remains in circulation longer.
A) A
B) C
C) D
D) B
- 34. Under Free coinage, individual may:
A. Issue government bonds
B. Produce their own legal tender.
C. Bring precious metals to the mint for coin production.
D. Print paper money.
A) C
B) A
C) B
D) D
- 35. Which type of money was issued by the Japanese military government during world war ll and was popularly known as the Mickey Mouse notes?
A. Treasury' certificates
B. Japanese occupation paper money
C. Gold-backed currency
D. Legal tender issued by the BSP
A) C
B) B
C) A
D) D
- 36. The term "money" originated from:
A. Athena
B. Moneta
C. Medici
D. Marco Polo
A) B
B) C
C) A
D) D
- 37. The island primarily used Fei stones as:
A. International trade currency
B. Government -issued currency.
C. Family wealth and ceremonial payments.
D. Daily pocket money.
A) C
B) A
C) D
D) B
- 38. Adam Smith argued that the invention of money was primarily intended to:
A. Replace inefficient barter with a more efficient exchange system.
B. Encourage saving.
C. Increase government revenue
D. Promote international trade
A) A
B) B
C) D
D) C
- 39. It is the process of stamping metal bullion to a desired size, certain weight ang fineness.
A. Coinage
B. Bimetallism
C. Monetary standard
D. Commodity
A) B
B) C
C) A
D) D
- 40. Which function of money if demonstrated when a person buys groceries?
A. Standard deferred payment
B. Medium of exchange
C. Store of value
D. Unit of account
A) C
B) B
C) D
D) A
- 41. Which type of Fiat standard was adopted by the Philippine when the Central was established in 1949?
A. Silver exchange standard
B. Managed currency standard
C. Gold bullion standard
D. Gold coin standard
A) C
B) A
C) B
D) D
- 42. It is used by the government to serve at the standard money allowed the circulation and made acceptable in payment.
A. Metallic money
B. Commodity money
C. Withdraw money
D. Credit money
A) D
B) B
C) A
D) C
- 43. Philippine banknotes are guaranteed by:
A. Commercial banks
B. The monetary board only
C. The government of the Republic of the Philippines
D. The department of finance
A) C
B) B
C) D
D) A
- 44. Which of the following if not one of the properties that made metallic money superior to commodity money?
A. Perishability
B. Divisibility
C. Durability
D. Scarcity and stability metal supply
A) B
B) A
C) C
D) D
- 45. Numismatic is the study of:
A. Agriculture
B. Investments
C. Coins currency
D. Banking
A) D
B) B
C) C
D) A
- 46. What is the process of manufacturing coins called?
A. Mint exchange
B. Engraving
C. Coinage
D. Printing
A) C
B) B
C) D
D) A
- 47. It is anything with value that is generally accepted by people as medium exchange.
A. Money
B. Land
C. Treasury
D. Credit
A) A
B) C
C) B
D) D
- 48. The name " Piloncito" can't from its resemblance to a:
A. Pearl
B. Sugar mold(pilon)
C. Rice grain
D. Coconut oil
A) C
B) B
C) D
D) A
- 49. According to Adam Smith, humans naturally have a tendency to:
A. Invest in banks
B. Borrow money
C. Trade and exchange
D. Save money
A) B
B) A
C) D
D) C
- 50. Which is NOTa characteristic of good money?
A. Divisibility
B. Fragility
C. Portability
D. Durability
A) B
B) A
C) D
D) C
- 51. Which principle of subsidiary coinage discourages people from melting coins for their metal content?
A. Unlimited legal tender
B. Market value lower than face value
C. Free coinage
D. Gold convertibility
A) B
B) A
C) D
D) C
- 52. A characteristic of money where it is easily carried from one place to another.
A. Portability
B. Divisibility
C.Durability
D. Convertibility
A) D
B) B
C) A
D) C
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