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. Since its inception in 1910, the Federal Reserve had made what decisions about bank bailouts?
(a) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts only if they could prove they had complied with all regulations.
(b) Since its inception in 1910, the Federal Reserve had decided that large banks would be the only banks to get bailouts.
(c) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts, medium-sized banks would get some bailouts, and small banks would be left to fail or be acquired by larger banks.
(d) Since its inception in 1910, the Federal Reserve had decided that medium-sized banks would get the majority of bailouts.

2. What monetary system did the Constitution of the newly formed United States require?
(a) When the United States was formed, the Constitution required gold-backed money.
(b) When the United States was formed, the Constitution required a paper currency system.
(c) When the United States was formed, the Constitution required that all precious metal be in the control of the government.
(d) When the United States was formed, the Constitution required a fractional money system.

3. What other organizations were spawned from Milner's secret society?
(a) Other parts of the secret society showed up as the Council on Foreign Relations and even the Red Cross.
(b) Other parts of the secret society showed up as the Noble Prize Commission.
(c) Other parts of the secret society showed up as the World Bank and Red Cross.
(d) Other parts of the secret society showed up as the International Money Fund.

4. What was a fundamental flaw in a paper money system not backed by gold?
(a) The temptation was too strong to simply print more money which led to severe deflation.
(b) The temptation was too strong to simply print more money which led to economic instability.
(c) The temptation was too strong to simply print more money which led to severe inflation.
(d) The temptation was too strong to simply print more money which led to economic stability.

5. How did the Federal Reserve System accomplish the nationalization of banks?
(a) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of risky loans.
(b) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of bailouts.
(c) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of new legislation.
(d) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of short-term loans.