This quiz consists of 5 multiple choice and 5 short answer questions through Section I. What Creature Is This? Chapters 5-6 Nearer to the Heart's Desire; Building the New World Order.

Multiple Choice Questions

1. How did unemployment impact the economic problems?
(a) High employment made more homes available for sale.
(b) High employment distracted people from looking for homes.
(c) High unemployment compounded this problem, forcing people into foreclosures and drying up the housing market.
(d) The Federal government was distracted from economic problems and focused their attention on the unemployed.

2. Why has bank fraud never been eliminated?
(a) Financial experts were taught that the way banking worked in the US was the only way it could work, and so the fraud kept on going.
(b) The Federal Reserve was influenced by lobbyists who advocated fraudulent regulations.
(c) The Federal Reserve tried to institute European standards which led to the perpetuation of fraud.
(d) The Federal Reserve was controlled by outside political interests that fostered fraud.

3. When the entire banking system failed, what did the Federal government turn to to bolster the failed back up system?
(a) When the whole banking system collapsed, money from newly issued government bonds went into bolstering the failed system back up.
(b) When the whole banking system collapsed, foreign investments went into bolstering the failed system back up.
(c) When the whole banking system collapsed, the debt ceiling was raised to bolster the failed system back up.
(d) When the whole banking system collapsed, taxpayer money went into bolstering the failed system back up.

4. The Federal Reserve System was designed to control what element of member banks?
(a) The Federal Reserve System was designed to control how much reserve cash any member bank had to keep on hand.
(b) The Federal Reserve System was designed to control a bank's ability to make loans.
(c) The Federal Reserve System was designed to control how much reserve cash a bank can invest in its expansion.
(d) The Federal Reserve System was designed to control a bank's cash flow.

5. What was the location of the meeting where the concept of the Federal Reserve was developed?
(a) The concept of the Federal Reserve was developed on Jekyll Island.
(b) The concept of the Federal Reserve was developed in the Hawaiin Islands.
(c) The concept of the Federal Reserve was developed on Long Island.
(d) The concept of the Federal Reserve was developed on Alcatraz Island.