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 class system evolved from the establishment of the paper money system.
(c) The lending process evolved from the establishment of the paper money system.
(d) Banks evolved from the establishment of the paper money system.

2. How did the government provide economic support to Lockheed Corporation in 1970?
(a) In 1970, Lockheed Corporation was made a unit of the Defense Department.
(b) In 1970, Lockheed Corporation was forgiven of all defense-related debt.
(c) In 1970, the US government agreed to pay Lockheed Corporation twenty-percent over their selling prices.
(d) In 1970, Lockheed Corporation had troubles and became a prime government contractor, another way of nationalizing private industry.

3. 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.

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 may have been fixed at one time and then broken again.
(b) The author failed to mention that our economic system is impossible to fix.
(c) The author failed to mention that our economic system depends on the success of the stock market.
(d) The author failed to mention that our economic system depends on foreign investments.

5. What solid case did governments make for fiat monetary systems?
(a) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would increase the budget deficit.
(b) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would raise the debt ceiling.
(c) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would increase the money supply.
(d) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would increase taxes.