This quiz consists of 5 multiple choice and 5 short answer questions through Section IV. A Tale of Three Banks, Chapters 16-19 The Creature Comes to America; A Den of Vipers; Loaves and Fishes, and Civil War; Greenbacks and Other Crimes.

Multiple Choice Questions

1. Why was platinum not used to back the monetary system?
(a) Platinum was too scarce to be used to be the standard for a monetary system.
(b) Not enough platinum occurred in the United States to be used as the standard for a monetary system.
(c) Platinum did not have the popular support of the public to become the standard for a monetary system.
(d) There were myths about platinum and many questioned its real value making it unacceptable to be used to be the standard for a monetary system.

2. What happened to many homeowners when the housing market bubble burst?
(a) Suddenly people owed more money on their properties than they were worth.
(b) Suddenly people owed more money on their properties than they did when they took out the loan.
(c) Many homeowners were forced into foreclosure.
(d) Many homeowners had to take out second mortgages on their properties.

3. What was the impact of the creation of new money on the currency?
(a) People considered the creation of new money inflationary as the prices of goods and services rose but had no impact on the currency.
(b) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality it was strengthening the currency in the world market.
(c) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was increasing the value of the currency.
(d) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was a devaluing of the currency.

4. What was the location of the meeting where the concept of the Federal Reserve was developed?
(a) The concept of the Federal Reserve was developed in the Hawaiin Islands.
(b) The concept of the Federal Reserve was developed on Jekyll Island.
(c) The concept of the Federal Reserve was developed on Long Island.
(d) The concept of the Federal Reserve was developed on Alcatraz Island.

5. What caused wildcat banks to develop?
(a) The central bank reintroduced deflation, and as the country expanded, wildcat banks developed in the wilderness.
(b) The central bank provided generous funds for loans, and as the country expanded, wildcat banks developed in the wilderness.
(c) The central bank reintroduced inflation, and as the country expanded, wildcat banks developed in the wilderness.
(d) The Federal Reserve reintroduced inflation, and as the country expanded, wildcat banks developed in the wilderness.