|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What occurred when coinage was weakened through lower percentages of precious metal or completing stripped of such backing?
2. What monetary system did the Constitution of the newly formed United States require?
3. What U.S. president removed the gold standard from the US dollar?
4. The author made what sports analogy to describe the problems with the banking system?
5. How is the Federal Reserve System reviewed in general?
Short Essay Questions
1. According to Chapter 4, when did Americans become interested in socialism?
2. According to Chapter 3, how did the government help the Lockheed Corporation?
3. In Chapter 4, what factdors may have contributed to the problems of the S&Ls in the 1980s?
4. According to Chapter 1, what did over-lending by banks result in?
5. According to Chapter 2, what is the Federal Deposit Insurance Corporation?
6. In Chapter 2, how did the banks make their money?
7. According to Chapter 5, what resulted from the removal of the gold standard?
8. In Chapter 2, how did the author characterize the problems with the banking system?
9. In Chapter 3, what is the first bailout that is covered in this book?
10. In Chapter 8, what did the issuance of the first paper money lead to?
Write an essay for ONE of the following topics:
Essay Topic 1
Describe and discuss the Mandrake Mechanism and its effect on an economy. Why was the system made to be complex?
Essay Topic 2
What did risky lending by banks lead to? How did the Federal Reserve support their poor practices? What was the Federal Deposit Insurance Corporation established for? In the author's opinion, what was the underlying reason for the FDIC?
Essay Topic 3
What event is usually blamed for the Great Depression? What were underlying reasons for the Great Depression? Why were Americans drawn to socialism during this crisis? What finally ended the Depression?
This section contains 769 words
(approx. 3 pages at 300 words per page)