|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Section I. What Creature Is This? Chapters 5-6 Nearer to the Heart's Desire; Building the New World Order.
Multiple Choice Questions
1. What did the U.S. government do to support banks?
(a) The U.S. government guaranteed depositor money through private insurance companies.
(b) The U.S. government guaranteed depositor money through Congress.
(c) The U.S. government forgave the debot of failing banks.
(d) The U.S. government guaranteed depositor money through the FDIC.
2. Why were S&Ls popular with those seeking loans in the 1980s?
(a) S&L loans were often approved on the spot.
(b) The S&Ls were offering better interest rates on deposits than banks, and that attracted money into them.
(c) It was easier for those seeking loans to be approved by S&Ls.
(d) S&L loans allowed customers to defer payments for up to one year.
3. What major banks failed in 1972?
(a) In 1972, First Bank of Michigan and New York Bank both failed.
(b) Unity Bank fell in 1972, as did the Commonwealth Bank of Detroit.
(c) In 1972, Bank of America and Citibank failed.
(d) First Bank of California and Wells Fargo Bank failed in 1972.
4. Prior to the establishment of the Federal Reserves, what caused massive bank failures?
(a) The Great Depression proved to be an unbearable strain on the banking system.
(b) US bonds were devalued by the Federal authorities.
(c) Foreign debtors demanded the full repayment of loands.
(d) There were public runs on the banks and currency drains from other banks demanding payments.
5. What did the Federal Reserve System help banks to do?
(a) The Federal Reserve helped banks to stay in operation.
(b) The Federal Reserve helped banks keep a healthy cash flow.
(c) The Federal Reserve helped banks keep individuals, businesses and entire countries perpetually in debt and working mostly for the banks.
(d) The Federal Reserve helped banks by making special laws for them.
Short Answer Questions
1. How did the banks make their money?
2. What does the FDIC stand for?
3. Why did banks make risky loans?
4. What was one of the strongest arguments in favor of bank regulation versus nationalization?
5. What U.S. president removed the gold standard from the US dollar?
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