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 does the FDIC stand for?
(a) The FDIC stands for The First Depositor's Insurance Corporation.
(b) The FDIC stands for The Federal Deposit Insurance Corporation.
(c) The FDIC stands for The Federal Debt Issuers Company.
(d) The FDIC stands for The First Debt Institute of Connneticut.

2. The banking system before the Federal Reserve System allowed banks to lend out what percentage of money against one percent in deposits.
(a) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to fithy percent loaned out with only one percent in deposits.
(b) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to ninety-nine percent loaned out with only one percent in deposits.
(c) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to sixty percent loaned out with only one percent in deposits.
(d) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to twenty percent loaned out with only one percent in deposits.

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

4. What caused the economy to get into such a state that the government was compelled to bail out banks?
(a) The argument could be made that lax lending practices and overly speculative investments had forced the government to use tax dollars in the bailouts.
(b) The American people were taking out too many home loans.
(c) The US Congress failed to pass legislation that would have boosted the economy.
(d) The International Monetary Fund had become dangerously unstable.

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