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

2. 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 one trillion dollars being added to the deficit.
(c) The first electronic run on banks happened in 1983, leading to a massive bailout in the $6 billion range.
(d) The first electronic run on banks happened in 1983, leading to a collapse of the economy.

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

4. What was really behind the Russian Bolshevik Revolution?
(a) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations of foreign interests.
(b) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations of a handful of financiers.
(c) The Russian Bolshevik Revolution was a revolution of and for the people.
(d) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations the Axis Powers.

5. What caused the economy to get into such a state that the government was compelled to bail out banks?
(a) The argument could be made that lax lending practices and overly speculative investments had forced the government to use tax dollars in the bailouts.
(b) The US Congress failed to pass legislation that would have boosted the economy.
(c) The American people were taking out too many home loans.
(d) The International Monetary Fund had become dangerously unstable.