View a FREE sample

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

2. How is the Federal Reserve System reviewed in general?
(a) The Federal Reserve System had become the nation's first source of lending.
(b) The Federal Reserve System had become known to have the strictest lending standards.
(c) The Federal Reserve System had become the economic leader of the country.
(d) The Federal Reserve System had become the lender of last resort.

3. What resulted after the first electronic run on banks in 1983?
(a) The first electronic run on banks happened in 1983, leading to a hoarding of cash.
(b) The first electronic run on banks happened in 1983, leading to a collapse of the economy.
(c) The first electronic run on banks happened in 1983, leading to one trillion dollars being added to the deficit.
(d) The first electronic run on banks happened in 1983, leading to a massive bailout in the $6 billion range.

4. What was a fundamental flaw in a paper money system not backed by gold?
(a) The temptation was too strong to simply print more money which led to economic instability.
(b) The temptation was too strong to simply print more money which led to severe inflation.
(c) The temptation was too strong to simply print more money which led to economic stability.
(d) The temptation was too strong to simply print more money which led to severe deflation.

5. What risky loan activities have banks participated in?
(a) Banks loaned depositors' money out to risky debtors who would likely not be able to pay the loans off.
(b) Banks loaned depositors' money out to poor people during the Great Depression.
(c) Banks loaned depositors' money to foreign governments who refused to repay the loans.
(d) Banks loaned depositors' money out to to the US government in times of economic downturns.

Short Answer Questions

1. Many people feel that the economic system has been rigged to favor what group of people?

2. If the debtors stopped paying banks altogether, what action would the Federal Reserve System take?

3. What unreasonable conclusion does the author make about the IMF and World Bank?

4. How did poor regulation contribute to the Savings and Loan crisis of the 1980s?

5. Who does the Federal Reserve depend on to bail out the country in times of economic collapse?

(see the answer key)

This section contains 745 words (approx. 3 pages at 300 words per page) View a FREE sample