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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 U.S. president removed the gold standard from the US dollar?
(a) President Nixon took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(b) President Kennedy took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(c) President Wilson took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(d) President Lincoln took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.

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

3. What is the status of a loan that is "underwater?"
(a) When a home loan is underwater, the homeowner is forced into bankruptcy.
(b) When a home loan is underwater, the homeowner must take out a second mortgage.
(c) When a home loan is underwater, the homeowner owns more on the home than it is worth on the market.
(d) When a home loan is underwater, the homeowner is forced into foreclosure by the lender.

4. Why did banks offer debtors more credit?
(a) Banks offered more credit to debtors to increase interest payments to the them.
(b) Banks offered more credit to debtors to so they could increase their purchasing power.
(c) Banks offered more credit to debtors to help them purchase homes.
(d) Banks offered more credit to debtors to help improve their credit rating.

5. What organization ensures the nationalization of banks?
(a) As long as the FDIC existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(b) As long as the International Monetary Fund existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(c) As long as the Federal Reserve System existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(d) As long as the Congressional Banking Committee existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.

Short Answer Questions

1. Why was platinum not used to back the monetary system?

2. Since its inception in 1910, the Federal Reserve had made what decisions about bank bailouts?

3. What did the Federal Reserve System help banks to do?

4. When the entire banking system failed, what did the Federal government turn to to bolster the failed back up system?

5. What important aspect about the economic history of the country did the author fail to mention?

(see the answer key)

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