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. 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 poor people from turning to crime.
(d) Many feel that the real reason for creating the Federal Reserve was to keep rich people in power.

2. Who does the Federal Reserve depend on to bail out the country in times of economic collapse?
(a) The Federal Reserve turns to Congress to bail out the country in times of economic collapse.
(b) The Federal Reserve turns to the taxpayer to bail out the country in times of economic collapse.
(c) The Federal Reserve turns to the banks to bail out the country in times of economic collapse.
(d) The Federal Reserve turns to the foreign investors to bail out the country in times of economic collapse.

3. How did many people feel about those who went too far into debt?
(a) Many felt that the nation had been taught to rely too much on credit.
(b) Many felt that people who were in debt had been encouraged to do so by political figures.
(c) Many argued that those in deep debt should be forgiven much of their dept because of the reclining economy.
(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.

4. 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.

5. What risky loan activities have banks participated in?
(a) Banks loaned depositors' money out to poor people during the Great Depression.
(b) Banks loaned depositors' money to foreign governments who refused to repay the loans.
(c) Banks loaned depositors' money out to to the US government in times of economic downturns.
(d) Banks loaned depositors' money out to risky debtors who would likely not be able to pay the loans off.