US Dollar MCQs
1. What is the official currency of the United States?
A) Euro
B) US Dollar
C) British Pound
D) Canadian Dollar
Answer: B) US Dollar
2. What is the symbol for the US Dollar?
A) $
B) €
C) £
D) ¥
Answer: A) $
3. Which institution is responsible for issuing US Dollars?
A) Federal Reserve
B) European Central Bank
C) Bank of England
D) Bank of Canada
Answer: A) Federal Reserve
4. When was the US Dollar first adopted as the official currency?
A) 1776
B) 1785
C) 1792
D) 1800
Answer: C) 1792
5. What act established the US Dollar as the official currency?
A) Coinage Act of 1792
B) Federal Reserve Act
C) Banking Act of 1933
D) Gold Standard Act
Answer: A) Coinage Act of 1792
6. Which president is featured on the $1 bill?
A) George Washington
B) Abraham Lincoln
C) Thomas Jefferson
D) Andrew Jackson
Answer: A) George Washington
7. Which president is featured on the $5 bill?
A) George Washington
B) Abraham Lincoln
C) Ulysses S. Grant
D) Andrew Jackson
Answer: C) Ulysses S. Grant
8. Which president is featured on the $10 bill?
A) Alexander Hamilton
B) Andrew Jackson
C) Abraham Lincoln
D) George Washington
Answer: A) Alexander Hamilton
9. Which president is featured on the $20 bill?
A) Abraham Lincoln
B) Andrew Jackson
C) George Washington
D) Thomas Jefferson
Answer: B) Andrew Jackson
10. Which president is featured on the $50 bill?
A) Abraham Lincoln
B) Ulysses S. Grant
C) Benjamin Franklin
D) George Washington
Answer: B) Ulysses S. Grant
11. Which president is featured on the $100 bill?
A) Abraham Lincoln
B) Benjamin Franklin
C) George Washington
D) Alexander Hamilton
Answer: D) Alexander Hamilton
12. Which of the following is NOT a denomination of US paper currency?
A) $2
B) $5
C) $10
D) $1000
Answer: D) $1000
13. What is the largest denomination of US currency ever issued?
A) $1000
B) $5000
C) $10000
D) $100000
Answer: D) $100000
14. Which US currency note features the Lincoln Memorial?
A) $1 bill
B) $5 bill
C) $10 bill
D) $50 bill
Answer: B) $5 bill
15. What is the value of a “greenback”?
A) $1
B) $5
C) $10
D) $100
Answer: A) $1
16. What material is primarily used to make US paper currency?
A) Paper
B) Cotton and linen
C) Plastic
D) Silk
Answer: B) Cotton and linen
17. Which security feature is used on US currency to prevent counterfeiting?
A) Watermark
B) Hologram
C) Microprinting
D) All of the above
Answer: D) All of the above
18. Which federal agency is responsible for investigating counterfeit currency?
A) Federal Bureau of Investigation (FBI)
B) Bureau of Engraving and Printing
C) Secret Service
D) Federal Reserve
Answer: C) Secret Service
19. When did the US stop using silver certificates for currency?
A) 1933
B) 1964
C) 1971
D) 1980
Answer: B) 1964
20. What is the US Dollar often abbreviated as?
A) USD
B) US$
C) U$
D) D$
Answer: A) USD
21. Which currency is considered the world’s primary reserve currency?
A) Euro
B) Japanese Yen
C) US Dollar
D) British Pound
Answer: C) US Dollar
22. Which US city is home to the Federal Reserve Bank of New York?
A) New York City
B) Washington, D.C.
C) Chicago
D) San Francisco
Answer: A) New York City
23. What was the US Dollar’s value pegged to under the Bretton Woods system?
A) Gold
B) Silver
C) Euro
D) Japanese Yen
Answer: A) Gold
24. Which US President signed the Gold Standard Act of 1900?
A) Theodore Roosevelt
B) William McKinley
C) Franklin D. Roosevelt
D) Woodrow Wilson
Answer: B) William McKinley
25. Which event in 1971 led to the end of the US Dollar’s convertibility into gold?
A) The Nixon Shock
B) The Great Depression
C) The Bretton Woods Conference
D) The Federal Reserve Act
Answer: A) The Nixon Shock
26. What is the term for US Dollars in circulation that are held by the public?
A) Base Money
B) M0
C) M1
D) M2
Answer: C) M1
27. What does the term “fiat currency” refer to?
A) Currency backed by physical assets
B) Currency with intrinsic value
C) Currency that derives its value from government regulation or law
D) Currency that is convertible into precious metals
Answer: C) Currency that derives its value from government regulation or law
28. Which US banknote design was updated to feature a security thread?
A) $1 bill
B) $5 bill
C) $10 bill
D) $20 bill
Answer: B) $5 bill
29. What is the term for the value of the US Dollar relative to other currencies?
A) Exchange Rate
B) Interest Rate
C) Inflation Rate
D) Reserve Ratio
Answer: A) Exchange Rate
30. Which US Dollar denomination is being redesigned to feature women in history?
A) $1 bill
B) $5 bill
C) $10 bill
D) $20 bill
Answer: D) $20 bill
31. What is the purpose of the Federal Reserve System?
A) To issue currency and manage inflation
B) To conduct foreign policy
C) To regulate trade
D) To provide public services
Answer: A) To issue currency and manage inflation
32. What does the term “Dollarization” refer to?
A) The process of a country adopting the US Dollar as its official currency
B) The act of printing more US Dollars
C) The process of exchanging US Dollars for other currencies
D) The devaluation of the US Dollar
Answer: A) The process of a country adopting the US Dollar as its official currency
33. Which country adopted the US Dollar as its official currency after World War II?
A) Zimbabwe
B) Panama
C) Ecuador
D) El Salvador
Answer: B) Panama
34. Which denomination of US Dollar is not currently in circulation?
A) $2 bill
B) $10,000 bill
C) $100,000 bill
D) $1,000 bill
Answer: B) $10,000 bill
35. What is the term for the US Dollar being used as a global benchmark for financial transactions?
A) Reserve Currency
B) Trading Currency
C) Exchange Currency
D) Transaction Currency
Answer: A) Reserve Currency
36. What feature on the $100 bill is used to change colors?
A) Security Thread
B) Color-Shifting Ink
C) Watermark
D) Microprinting
Answer: B) Color-Shifting Ink
37. In which year did the US Dollar become the world’s primary reserve currency?
A) 1944
B) 1950
C) 1971
D) 1980
Answer: A) 1944
38. What term is used to describe the US Dollar’s value compared to other currencies?
A) Currency Rate
B) Currency Index
C) Exchange Rate
D) Value Ratio
Answer: C) Exchange Rate
39. Which US President’s portrait appears on the $50 bill?
A) Abraham Lincoln
B) Benjamin Franklin
C) Ulysses S. Grant
D) George Washington
Answer: C) Ulysses S. Grant
40. Which US currency note includes a security feature called a “security thread”?
A) $1 bill
B) $5 bill
C) $10 bill
D) $20 bill
Answer: B) $5 bill
41. Which of the following is NOT a feature of the new $100 bill design?
A) Blue security ribbon
B) Portrait watermark
C) Raised printing
D) Holographic star
Answer: D) Holographic star
42. Which country’s currency is often compared with the US Dollar for global trade?
A) Euro
B) British Pound
C) Japanese Yen
D) Australian Dollar
Answer: A) Euro
43. Which US currency note depicts the Independence Hall?
A) $1 bill
B) $2 bill
C) $5 bill
D) $10 bill
Answer: B) $2 bill
44. In what year did the Federal Reserve begin operations?
A) 1900
B) 1913
C) 1920
D) 1933
Answer: B) 1913
45. What is the primary function of the Federal Reserve?
A) To issue currency
B) To maintain price stability
C) To conduct monetary policy
D) All of the above
Answer: D) All of the above
46. What does the Federal Open Market Committee (FOMC) do?
A) Sets interest rates
B) Manages the money supply
C) Conducts open market operations
D) All of the above
Answer: D) All of the above
47. What is the maximum amount of US currency in circulation at any given time?
A) There is no limit
B) Determined by the Federal Reserve
C) Limited to $1 trillion
D) Limited to $10 trillion
Answer: B) Determined by the Federal Reserve
48. Which of the following factors can influence the value of the US Dollar?
A) Inflation
B) Interest rates
C) Political stability
D) All of the above
Answer: D) All of the above
49. What is the term for the increase in the general price level of goods and services?
A) Deflation
B) Inflation
C) Stagnation
D) Depreciation
Answer: B) Inflation
50. What is the purpose of the currency printing process?
A) To increase money supply
B) To replace damaged bills
C) To adjust for inflation
D) All of the above
Answer: D) All of the above