View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Section I. What Creature Is This? Chapter 2 The Name of the Game Is Bailout.

Multiple Choice Questions

1. In what year was the concept of the Federal Reserve first developed?
(a) The concept of the Federal Reserve was developed in 1952.
(b) The concept of the Federal Reserve was developed in 1910?
(c) The concept of the Federal Reserve was developed in 1920.
(d) The concept of the Federal Reserve was developed in 1966.

2. The author made what sports analogy to describe the problems with the banking system?
(a) Using a soccer analogy, the problems with the banking system were presented in a fairly understandable way.
(b) Using a baseball analogy, the problems with the banking system were presented in a fairly understandable way.
(c) Using a football analogy, the problems with the banking system were presented in a fairly understandable way.
(d) Using a golf analogy, the problems with the banking system were presented in a fairly understandable way.

3. Why did banks ask for interest-only payments?
(a) The bank would arrange for interest payments only to take the burden off the customer.
(b) The bank would arrange for interest payments only to keep the loan viable.
(c) The bank would arrange for interest payments only so that their customers could keep a good credit rating>
(d) The bank would arrange for interest payments only to keep the profits coming in.

4. How did many people feel about those who went too far into debt?
(a) Many felt that people who were in debt had been encouraged to do so by political figures.
(b) Many argued that those in deep debt should be forgiven much of their dept because of the reclining economy.
(c) Many felt that the nation had been taught to rely too much on credit.
(d) Many argued that people who went too far into debt had done this on their own--nobody had forced people into the mortgages or credit cards.

5. What is the definition of a public run on a bank?
(a) A public run is when the government puts a bank up for sale.
(b) A public run occurs when the Federal government takes ownership of a bank.
(c) A public run occurs when a bank runs out of cash.
(d) A public run was when many depositors demanded their cash from a bank and wiped out the bank's reserves.

Short Answer Questions

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

2. What happens when the Federal Reserve System prints new money?

3. What type of person was Paul Moritz Warburg?

4. What do many people feel was the real reason behind the establishment of the Federal Reserve?

5. What did the U.S. government do to support banks?

(see the answer key)

This section contains 708 words (approx. 3 pages at 300 words per page) View a FREE sample