|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. How did many people feel about those who went too far into debt?
(a) Many felt that the nation had been taught to rely too much on credit.
(b) Many felt that people who were in debt had been encouraged to do so by political figures.
(c) Many argued that those in deep debt should be forgiven much of their dept because of the reclining economy.
(d) Many argued that people who went too far into debt had done this on their own--nobody had forced people into the mortgages or credit cards.
2. What resulted from the 1970 Penn Central Railroad bailout?
(a) The 1970 Penn Central Railroad bailout resulted in government-owned Amtrak and privately owned Conrail.
(b) More roads were built by the government as a result of the bailout.
(c) Travel in the US decreased as a result of the bailout.
(d) Air traffic increased after the bailout.
3. What problems did the economy of the American Colonies incur?
(a) The American Colonies experienced instability in their economy.
(b) The American Colonies experienced economic uncertainty due to interference by England.
(c) The American Colonies experienced terrible bouts of deflation.
(d) The American Colonies experienced terrible bouts of inflation.
4. What redistribution of wealth occurred as a result of the establishment of the IMF and the World Bank?
(a) It was an effective means of redistributing wealth from rich to poor nations.
(b) It was an effective means of redistributing wealth to the rich to the middle class.
(c) It was an effective means of redistributing wealth from the middle class to the rich.
(d) It was an effective means of redistributing wealth to the rich nations.
5. How did the banks make their money?
(a) The banks made money on interest, not principle, payments.
(b) The banks made money on both interest ad principle payments.
(c) The banks made money on their cash flow.
(d) The banks made money on principle, not on interest payments.
Short Answer Questions
1. What did the author argue resulted from the establishment of the IMF and World Bank and the abandonment of the gold standard?
2. What type of person was Paul Moritz Warburg?
3. Why has bank fraud never been eliminated?
4. How do conspiracy theorists strengthen their stands?
5. Why was platinum not used to back the monetary system?
Short Essay Questions
1. According to Chapter 2, what is the Federal Deposit Insurance Corporation?
2. In Chapter 8, what did the issuance of the first paper money lead to?
3. According to Chapter 1, what did over-lending by banks result in?
4. In Chapter 4, what factdors may have contributed to the problems of the S&Ls in the 1980s?
5. In Chapter 6, why did all nations, in the author's opinion, become socialistic in the New World Order?
6. In Chapter 1, how is a "public run" defined?
7. According to Chapter 4, what presidential action may have contributed to the economic woes?
8. According to Chapter 7, how did modern monetary systems originate historically?
9. According to Chapter 5, what US president abandoned the gold standard from the US dollar?
10. In Chapter 3, what was the result of the 1970 Penn Central Railroad bailout?
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