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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. What U.S. president removed the gold standard from the US dollar?
(a) President Wilson took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(b) President Kennedy took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(c) President Lincoln took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(d) President Nixon took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.

2. What do many people feel was the real reason behind the establishment of the Federal Reserve?
(a) Many feel that the real reason for creating the Federal Reserve was to keep the middle class from failing.
(b) Many feel that the real reason for creating the Federal Reserve was to keep the rich from becoming too powerful.
(c) Many feel that the real reason for creating the Federal Reserve was to keep rich people in power.
(d) Many feel that the real reason for creating the Federal Reserve was to keep poor people from turning to crime.

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 impacted housing prices in the Midwest states?
(a) The depression in the rust belt that included northern Midwestern states such as Michigan, Ohio and Pennsylvania reduced the number of potential home buyers which in turn depressed housing prices in those areas.
(b) House prices declined because homeowners due to the region's lack of good school systems.
(c) Housing prices declined because of poor construction standards in the area.
(d) The Rust Belt area of the country was not considered a desirable place in which to live.

5. How is the Federal Reserve System reviewed in general?
(a) The Federal Reserve System had become the lender of last resort.
(b) The Federal Reserve System had become the nation's first source of lending.
(c) The Federal Reserve System had become known to have the strictest lending standards.
(d) The Federal Reserve System had become the economic leader of the country.

Short Answer Questions

1. The Federal Reserve System was designed to control what element of member banks?

2. What solid case did governments make for fiat monetary systems?

3. What drove prices upward during the War of 1812?

4. What caused the economy to get into such a state that the government was compelled to bail out banks?

5. When the entire banking system failed, what did the Federal government turn to to bolster the failed back up system?

(see the answer key)

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