1. What is the true function of the FDIC?
(a) The FDIC is another way to demonstrate the strength of the economy.
(b) The FDIC is another way to support the people who use banks.
(c) The FDIC is another way to pay off banking mistakes through the taxpayer.
(d) The FDIC is another way to pay off the debt of the taxpayer.

2. Prior to the establishment of the Federal Reserves, what caused massive bank failures?
(a) Foreign debtors demanded the full repayment of loands.
(b) There were public runs on the banks and currency drains from other banks demanding payments.
(c) The Great Depression proved to be an unbearable strain on the banking system.
(d) US bonds were devalued by the Federal authorities.

3. Who does the Federal Reserve depend on to bail out the country in times of economic collapse?
(a) The Federal Reserve turns to the banks to bail out the country in times of economic collapse.
(b) The Federal Reserve turns to the foreign investors to bail out the country in times of economic collapse.
(c) The Federal Reserve turns to Congress to bail out the country in times of economic collapse.
(d) The Federal Reserve turns to the taxpayer to bail out the country in times of economic collapse.

4. When the entire banking system failed, what did the Federal government turn to to bolster the failed back up system?
(a) When the whole banking system collapsed, money from newly issued government bonds went into bolstering the failed system back up.
(b) When the whole banking system collapsed, foreign investments went into bolstering the failed system back up.
(c) When the whole banking system collapsed, the debt ceiling was raised to bolster the failed system back up.
(d) When the whole banking system collapsed, taxpayer money went into bolstering the failed system back up.

5. When did the American public become interested in socialism as an alternative to capitalism?
(a) After LBJ's Great Society was enacted, the American public became interested in socialism as an alternative to capitalism.
(b) After World War II, the American public became interested in socialism as an alternative to capitalism.
(c) During the Cold War, the American public became interested in socialism as an alternative to capitalism.
(d) During the Great Depression of the 1930s, the American public became interested in socialism as an alternative to capitalism.