This quiz consists of 5 multiple choice and 5 short answer questions through Section II. A Crash Course on Money, Chapters 7-8 The Barbaric Metal; Fool's Gold.

Multiple Choice Questions

1. What was the impact of the creation of new money on the currency?
(a) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was increasing the value of the currency.
(b) People considered the creation of new money inflationary as the prices of goods and services rose but had no impact on the currency.
(c) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was a devaluing of the currency.
(d) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality it was strengthening the currency in the world market.

2. In what year was First Pennsylvania Bank bailed out?
(a) First Pennsylvania Bank was bailed out in 1972.
(b) First Pennsylvania Bank was bailed out in 1975.
(c) First Pennsylvania Bank was bailed out in 1973.
(d) First Pennsylvania Bank was bailed out in 1980.

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

4. During which president's administration were policies that were a hybrid of socialism and capitalism developed?
(a) The American public's interest in socialism brought about policies that were a hybrid of socialism and capitalism during the Eisenhower administration.
(b) The American public's interest in socialism brought about policies that were a hybrid of socialism and capitalism during the Nixon administration.
(c) The American public's interest in socialism brought about policies that were a hybrid of socialism and capitalism during Franklin D. Roosevelt's administration.
(d) The American public's interest in socialism brought about policies that were a hybrid of socialism and capitalism during the Truman administration.

5. What is a fractional money system?
(a) A fractional money system is one in which paper money was initially backed by gold but was later diluted when the gold was devalued.
(b) A fractional money system is one in which paper money was initially backed by gold but was later diluted with the backing of silver.
(c) A fractional money system is one in which paper money was initially backed by gold but was later diluted when the gold was invested in foreign interests.
(d) A fractional money system is one in which paper money was initially backed by gold but was later diluted as more paper money was printed.