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 booming economies and political stability.
(b) Money not backed by precious metal led to inflation and political upheaval.
(c) Money not backed by precious metal led to deflation and political upheaval.
(d) Money not backed by precious metal led to higher deficits.

2. Why was platinum not used to back the monetary system?
(a) Not enough platinum occurred in the United States to be used as the standard for a monetary system.
(b) Platinum did not have the popular support of the public to become the standard for a monetary system.
(c) There were myths about platinum and many questioned its real value making it unacceptable to be used to be the standard for a monetary system.
(d) Platinum was too scarce to be used to be the standard for a monetary system.

3. How did the government provide economic support to Lockheed Corporation in 1970?
(a) In 1970, Lockheed Corporation was made a unit of the Defense Department.
(b) In 1970, Lockheed Corporation had troubles and became a prime government contractor, another way of nationalizing private industry.
(c) In 1970, Lockheed Corporation was forgiven of all defense-related debt.
(d) In 1970, the US government agreed to pay Lockheed Corporation twenty-percent over their selling prices.

4. 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 purge the system of fraud and abuse.
(b) An argument in favor of regulation was that the American people felt uncomfortable with nationalization.
(c) 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.
(d) An argument in favor of regulation was that it would cause less unemployment.

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