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 when paper money was not backed with gold or silver?
(a) Money not backed by precious metal led to higher deficits.
(b) Money not backed by precious metal led to booming economies and political stability.
(c) Money not backed by precious metal led to deflation and political upheaval.
(d) Money not backed by precious metal led to inflation and political upheaval.

2. What culture was the first to create a currency system based on gold and silver?
(a) The ancient Greeks came up with the idea to make coins out of gold and silver.
(b) Alexander the Great came up with the idea to make coins out of gold and silver.
(c) The ancient Romans came up with the idea to make coins out of gold and silver.
(d) The British came up with the idea to make coins out of gold and silver.

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

4. Why was the use of fiat money disallowed in the United States?
(a) The reason the framers of the Constitution elected to eliminate fiat money was because a bank run had recently occurred, and the pain of that was still fresh in the framers' minds.
(b) The reason the framers of the Constitution elected to eliminate fiat money was because a severe economic downturn had recently occurred, and the pain of that was still fresh in the framers' minds.
(c) The reason the framers of the Constitution elected to eliminate fiat money was because rampant inflation had recently occurred, and the pain of that was still fresh in the framers' minds.
(d) The reason the framers of the Constitution elected to eliminate fiat money was because rampant deflation had recently occurred, and the pain of that was still fresh in the framers' minds.

5. How was the nationalization of banks justified?
(a) Nationalization was necessary for the IMF.
(b) Nationalization was necessary for the banking industry.
(c) Nationalization was necessary for the public good.
(d) Nationalization was necessary for the nation's standing in the world.