This quiz consists of 5 multiple choice and 5 short answer questions through Section II. A Crash Course on Money, Chapters 9-10 The Secret Science; The Mandrake Mechanism.

Multiple Choice Questions

1. What did the issuance of the first paper money lead to?
(a) Stronger economies evolved from the establishment of the paper money system.
(b) The lending process evolved from the establishment of the paper money system.
(c) The class system evolved from the establishment of the paper money system.
(d) Banks evolved from the establishment of the paper money system.

2. Why did governments favor banks based on a fiat money system?
(a) Governments liked the fiat money because it allowed them to hoard gold.
(b) Governments liked the fiat money because it was a way of confiscating wealth from the citizens without raising taxes.
(c) Governments liked the fiat money because it allowed them to raise taxes.
(d) Governments liked the fiat money because it was a way of confiscating wealth from the rich and redistributing it to the poor.

3. Why did banks offer debtors more credit?
(a) Banks offered more credit to debtors to increase interest payments to the them.
(b) Banks offered more credit to debtors to help them purchase homes.
(c) Banks offered more credit to debtors to help improve their credit rating.
(d) Banks offered more credit to debtors to so they could increase their purchasing power.

4. How open to questioning were the original participants of the 1910 meeting?
(a) The participants at the 1910 meeting would only agree to talk about the establishment of the Federal Reserve with the New York Times.
(b) None of the participants at the 1910 meeting talked about the establishment of the Federal Reserve in interviews conducted years later.
(c) Most of the participants at the 1910 meeting openly talked about the establishment of the Federal Reserve in interviews conducted years later.
(d) Only some of the participants at the 1910 meeting talked about the establishment of the Federal Reserve in interviews conducted years later.

5. Early banks were supported by what monetary system?
(a) Sometimes the banks were on a gold system, but most were backed by other commodities.
(b) Sometimes the banks were on a gold system, but most often they were backed by their governments.
(c) Sometimes the banks were on a gold system, but most often they went to a fiat money system.
(d) Sometimes the banks were on a gold system, but most often they went to a silver-backed money system.