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. What is the true function of the FDIC?
(a) The FDIC is another way to demonstrate the strength of the economy.
(b) The FDIC is another way to support the people who use banks.
(c) The FDIC is another way to pay off banking mistakes through the taxpayer.
(d) The FDIC is another way to pay off the debt of the taxpayer.

2. Since its inception in 1910, the Federal Reserve had made what decisions about bank bailouts?
(a) Since its inception in 1910, the Federal Reserve had decided that large banks would be the only banks to get bailouts.
(b) Since its inception in 1910, the Federal Reserve had decided that medium-sized banks would get the majority of bailouts.
(c) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts only if they could prove they had complied with all regulations.
(d) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts, medium-sized banks would get some bailouts, and small banks would be left to fail or be acquired by larger banks.

3. What major banks failed in 1972?
(a) In 1972, Bank of America and Citibank failed.
(b) In 1972, First Bank of Michigan and New York Bank both failed.
(c) Unity Bank fell in 1972, as did the Commonwealth Bank of Detroit.
(d) First Bank of California and Wells Fargo Bank failed in 1972.

4. Who was the mastermind behind the Federal Reserve?
(a) Henry Kissinger was the mastermind behind the Federal Reserve.
(b) Thomas Jefferson was the mastermind behind the Federal Reserve.
(c) Alexander Hamilton was the mastermind behind the Federal Reserve.
(d) Paul Moritz Warburg was the mastermind behind the Federal Reserve.

5. What action was taken by the Federal Reserve during the 1980s S&L crisis?
(a) The Federal Reserve System usurped the powers of Congress and began crafting legislation to bail out the S&Ls.
(b) The Federal Reserve System usurped the powers of Congress and forgave the S&Ls their debts.
(c) The Federal Reserve System usurped the powers of Congress and declared that the S&Ls had the same rights as banks.
(d) The Federal Reserve System usurped the powers of Congress and started handing out money directly to the S&Ls as well.