This quiz consists of 5 multiple choice and 5 short answer questions through Section III. The New Alchemy, Chapters 13-15 Masquerade in Moscow; The Best Enemy Money Can Buy; The Lost Treasure Map.

Multiple Choice Questions

1. What resulted after the first electronic run on banks in 1983?
(a) The first electronic run on banks happened in 1983, leading to a collapse of the economy.
(b) The first electronic run on banks happened in 1983, leading to a massive bailout in the $6 billion range.
(c) The first electronic run on banks happened in 1983, leading to a hoarding of cash.
(d) The first electronic run on banks happened in 1983, leading to one trillion dollars being added to the deficit.

2. What impact did the Greek currency system have on the economy?
(a) The Greek currency system led to other cultures creating similar systems.
(b) The Greek currency system led to an unstable economy.
(c) The Greek currency system had no effect on the economy.
(d) The Greek currency system led to a stable economy.

3. What was the main argument in favor of nationalizing banks?
(a) The fundamental argument in favor of the nationalization was that a weak economy would recover more quickly.
(b) The fundamental argument in favor of the nationalization was that the system had to be purged of risk-taking bank executives.
(c) 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.
(d) The fundamental argument in favor of the nationalization was that such bailouts would be allowed only once.

4. How did the development of paper money begin?
(a) The development of paper money started out as simply receipts issued by goldsmiths who were the first banks.
(b) The development of paper money started out as vouchers issued by the government.
(c) The development of paper money started out as simply receipts issued by goldsmiths who kept other people's gold coins in their vaults.
(d) The development of paper money started out as simply receipts issued by goldsmiths who gave the people's gold coins to the government.

5. What was one of the strongest arguments in favor of bank regulation versus nationalization?
(a) An argument in favor of regulation was that it would cause less unemployment.
(b) An argument in favor of regulation was that, when properly administered, it had worked from the time of Franklin D. Roosevelt (President of the US from 1933 to 1945) to 1970.
(c) An argument in favor of regulation was that the American people felt uncomfortable with nationalization.
(d) An argument in favor of regulation was that it would purge the system of fraud and abuse.