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. During the history of the world, what types of things were first traded?
(a) During the history of money development, the first currency system was based on grain and livestock.
(b) During the history of money development, trade started out between neighboring communities.
(c) During the history of money development, trade started out with a rudimentary currency system.
(d) During the history of money development, trade started out with bartering commodities, cows traded for grain and so on.

2. What caused the economy to get into such a state that the government was compelled to bail out banks?
(a) The American people were taking out too many home loans.
(b) The International Monetary Fund had become dangerously unstable.
(c) The argument could be made that lax lending practices and overly speculative investments had forced the government to use tax dollars in the bailouts.
(d) The US Congress failed to pass legislation that would have boosted the economy.

3. Which European bank become the model for the Federal Reserve System?
(a) Bank One of Rome became the model for the Federal Reserve System.
(b) First Banc of France became the model for the Federal Reserve System
(c) The Bank of Madrid became the model for the Federal Reserve System.
(d) The Bank of England became the model for the Federal Reserve System.

4. 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 risky debtors who would likely not be able to pay the loans off.
(d) Banks loaned depositors' money out to poor people during the Great Depression.

5. Why was gold considered the ideal metal behind a monetary system?
(a) Gold was considered the perfect metal because of its intrinsic value and scarcity throughout history.
(b) Gold was considered the perfect metal because of its value and availability.
(c) Gold was considered the perfect metal because it was the most common of the precious metals.
(d) Gold was considered the perfect metal because it was the most sought after of the precious metals.