|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Section II. A Crash Course on Money, Chapters 7-8 The Barbaric Metal; Fool's Gold.
Multiple Choice Questions
1. Some tactics include cherry-picking examples while oversimplifying causes.
(a) One tactic is to accuse others of lying about the facts.
(b) One tactic is having others provide testimonials on their behalf.
(c) One tactic is cherry-picking examples while oversimplifying causes.
(d) One tactic is providing great detail about their causes.
2. During the history of the world, what types of things were first traded?
(a) During the history of money development, trade started out with a rudimentary currency system.
(b) During the history of money development, trade started out between neighboring communities.
(c) During the history of money development, the first currency system was based on grain and livestock.
(d) During the history of money development, trade started out with bartering commodities, cows traded for grain and so on.
3. Why were S&Ls popular with those seeking loans in the 1980s?
(a) The S&Ls were offering better interest rates on deposits than banks, and that attracted money into them.
(b) It was easier for those seeking loans to be approved by S&Ls.
(c) S&L loans were often approved on the spot.
(d) S&L loans allowed customers to defer payments for up to one year.
4. What events cause deflation?
(a) Deflation occurs when prices suddenly increase.
(b) Deflation occurs when prices suddenly tumble.
(c) Deflation occurs when the stock market suddenly tumble.
(d) Deflation occurs when the government takes steps against inflationary signals.
5. What resulted when paper money was not backed with gold or silver?
(a) Money not backed by precious metal led to deflation and political upheaval.
(b) Money not backed by precious metal led to higher deficits.
(c) Money not backed by precious metal led to booming economies and political stability.
(d) Money not backed by precious metal led to inflation and political upheaval.
Short Answer Questions
1. What impact does deflation have on individuals who are repaying loans?
2. What do some feel was the reason for establishing the Federal Reserve?
3. If the debtors stopped paying banks altogether, what action would the Federal Reserve System take?
4. Why did banks offer debtors more credit?
5. What historic reference is contained in this chapter?
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