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 do some feel was the reason for establishing the Federal Reserve?
(a) The Federal Reserve System was concocted not to stabilize the economy but to put economic control into the hands of a few people who agreed not to compete with one another.
(b) The Federal Reserve System was concocted to put economic control into the hands of the people.
(c) The Federal Reserve System was concocted not to stabilize the economy and create an economy that was distributed equally among the population.
(d) The Federal Reserve System was concocted to stabilize the economy.

2. What disagreement did Alexander Hamilton and Thomas Jefferson have about a central bank?
(a) Alexander Hamilton wanted a limited central bank and Thomas Jefferson wanted its authority to be more far-reaching.
(b) Alexander Hamilton favored a central bank and Thomas Jefferson was against it.
(c) Alexander Hamilton favored a powerful central bank and Thomas Jefferson was for limited powers.
(d) Thomas Jefferson favored a central bank and Alexander Hamilton was against it.

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

4. What was the main argument in favor of nationalizing banks?
(a) The fundamental argument in favor of the nationalization was that a weak economy would recover more quickly.
(b) The fundamental argument in favor of the nationalization was that the system was so broken that it simply could not be regulated enough to work without eventually nationalizing all banking and industry.
(c) The fundamental argument in favor of the nationalization was that the system had to be purged of risk-taking bank executives.
(d) The fundamental argument in favor of the nationalization was that such bailouts would be allowed only once.

5. What occurred when coinage was weakened through lower percentages of precious metal or completing stripped of such backing?
(a) Inflation and political turmoil occurred when the coinage was debased through lower percentages of precious metal or none at all.
(b) Deflation resulted when the coinage was debased through lower percentages of precious metal or none at all.
(c) Stock market instability occurred when the coinage was debased through lower percentages of precious metal or none at all.
(d) Paper money was seen to be the superior monetary system when the coinage was debased through lower percentages of precious metal or none at all.