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. How did the development of paper money begin?
(a) The development of paper money started out as simply receipts issued by goldsmiths who were the first banks.
(b) The development of paper money started out as vouchers issued by the government.
(c) The development of paper money started out as simply receipts issued by goldsmiths who kept other people's gold coins in their vaults.
(d) The development of paper money started out as simply receipts issued by goldsmiths who gave the people's gold coins to the government.

2. What impact does deflation have on individuals who are repaying loans?
(a) Deflation causes people to repay more value on loans taken out during inflationary times.
(b) Deflation causes people to repay more value on loans during an economic downturn.
(c) Deflation causes people to repay more value on loans taken out during a bear market.
(d) Deflation causes people to repay more value on loans taken out during a bull market.

3. What were the sales of English and French war bonds used for?
(a) Most of the money from the sales of the war bonds were spent on American war materials.
(b) Most of the money from the sales of the war bonds were spent on uniforms and supplies for the soldiers.
(c) Most of the money from the sales of the war bonds were spent on German war materials.
(d) Most of the money from the sales of the war bonds were spent on Russian artillery.

4. Why was the "Federal Reserve System," so named?
(a) The "Federal Reserve System" was so named so that people would know that it was part of the Federal government.
(b) The "Federal Reserve System" was so named because its offices were not state run.
(c) The "Federal Reserve System" was so named so that people would have respect for it.
(d) The "Federal Reserve System" was so named so that people would think it was part of the Federal government.

5. What restricted the the states from using fiat money?
(a) The Federal Reserve specifically restricted the use of fiat money by the states.
(b) The International Monetary Fund specifically restricted the use of fiat money by the states.
(c) The US Congress specifically restricted the use of fiat money by the states.
(d) The Constitution specifically restricted the use of fiat money by the states.