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 risky loan activities have banks participated in?
(a) Banks loaned depositors' money out to to the US government in times of economic downturns.
(b) Banks loaned depositors' money to foreign governments who refused to repay the loans.
(c) Banks loaned depositors' money out to poor people during the Great Depression.
(d) Banks loaned depositors' money out to risky debtors who would likely not be able to pay the loans off.

2. How did governments devalue currency in fiat money systems?
(a) This was accomplished by devaluing the currency through regulation.
(b) This was accomplished by devaluing the currency through taxation..
(c) This was accomplished by devaluing the currency through use of the printing press.
(d) This was accomplished by devaluing the currency through legislation.

3. What did the Federal Reserve System help banks to do?
(a) The Federal Reserve helped banks to stay in operation.
(b) The Federal Reserve helped banks by making special laws for them.
(c) The Federal Reserve helped banks keep a healthy cash flow.
(d) The Federal Reserve helped banks keep individuals, businesses and entire countries perpetually in debt and working mostly for the banks.

4. What important aspect about the economic history of the country did the author fail to mention?
(a) The author failed to mention that our economic system depends on foreign investments.
(b) The author failed to mention that our economic system may have been fixed at one time and then broken again.
(c) The author failed to mention that our economic system is impossible to fix.
(d) The author failed to mention that our economic system depends on the success of the stock market.

5. How was some property converted for home ownership during the 1980s?
(a) Less expensive condominiums that often times had been rental apartments became another way. Rent-to-buy deals popped into the market.
(b) In some towns, student housing was converted to property that was sold to homeowners.
(c) Some storefront small business buildings were converted to property that was sold for private homes.
(d) Trailer parks were developed as suburban subdivisions.