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 historic reference is contained in this chapter?
(a) A history of legislation regarding the Federal Reserve is contained in this section.
(b) A history of the laws regulating the economy is contained in this chapter.
(c) A history of bailouts was outlined in this chapter, starting in 1970 with Penn Central Railroad.
(d) A history of the Federal Reserve chairmain is contained in this section.

2. What is a fractional money system?
(a) A fractional money system is one in which paper money was initially backed by gold but was later diluted as more paper money was printed.
(b) A fractional money system is one in which paper money was initially backed by gold but was later diluted with the backing of silver.
(c) A fractional money system is one in which paper money was initially backed by gold but was later diluted when the gold was devalued.
(d) A fractional money system is one in which paper money was initially backed by gold but was later diluted when the gold was invested in foreign interests.

3. 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 short-term loans.
(c) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of bailouts.
(d) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of new legislation.

4. 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 kept other people's gold coins in their vaults.
(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 gave the people's gold coins to the government.

5. What country was formed after the second Russian revolution?
(a) New Poland was formed after the second Russian revolution.
(b) Kurdistan was formed after the Russian revolution.
(c) The USSR developed after the second Russian revolution.
(d) The country of Georgia was established after the second Russian revolution.