This quiz consists of 5 multiple choice and 5 short answer questions through Section IV. A Tale of Three Banks, Chapters 16-19 The Creature Comes to America; A Den of Vipers; Loaves and Fishes, and Civil War; Greenbacks and Other Crimes.

Multiple Choice Questions

1. Why did governments favor banks based on a fiat money system?
(a) Governments liked the fiat money because it allowed them to hoard gold.
(b) Governments liked the fiat money because it was a way of confiscating wealth from the citizens without raising taxes.
(c) Governments liked the fiat money because it allowed them to raise taxes.
(d) Governments liked the fiat money because it was a way of confiscating wealth from the rich and redistributing it to the poor.

2. What was the main argument in favor of nationalizing banks?
(a) The fundamental argument in favor of the nationalization was that the system had to be purged of risk-taking bank executives.
(b) The fundamental argument in favor of the nationalization was that a weak economy would recover more quickly.
(c) The fundamental argument in favor of the nationalization was that such bailouts would be allowed only once.
(d) The fundamental argument in favor of the nationalization was that the system was so broken that it simply could not be regulated enough to work without eventually nationalizing all banking and industry.

3. The sinking of the Lusitania provoked what country to enter into World War I?
(a) The sinking of the Lusitania and the death of its passengers, many of whom were French citizens, brought the France into the war.
(b) The sinking of the Lusitania and the death of its passengers, many of whom were British citizens, brought the England into the war.
(c) The sinking of the Lusitania and the death of its passengers, many of whom were German citizens, brought the Germany into the war.
(d) The sinking of the Lusitania and the death of its passengers, many of whom were US citizens, brought the US into the war.

4. What is the basic structure of the U.S. monetary system?
(a) The monetary system in the U.S. was constructed for debt to be necessary in order for Federal Reserve to remain in control of monetary concerns.
(b) The monetary system in the U.S. was constructed for debt to be necessary in order for the economy to flourish.
(c) The monetary system in the U.S. was constructed for debt to be necessary in order for the Congress to pass tax increases.
(d) The monetary system in the U.S. was constructed for debt to be necessary in order for the money supply to remain in existence.

5. How is the Federal Reserve System reviewed in general?
(a) The Federal Reserve System had become the economic leader of the country.
(b) The Federal Reserve System had become the nation's first source of lending.
(c) The Federal Reserve System had become known to have the strictest lending standards.
(d) The Federal Reserve System had become the lender of last resort.