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 countries did the author point to as failures of the IMF and World Bank?
(a) The author used Venezuela, Chili, Cuba and Uraguay as examples of IMF and World Bank failures.
(b) The author used The Sudan, China, Pakistan and Afghanistan as examples of IMF and World Bank failures.
(c) The author used Tanzania, Argentina, Brazil and Mexico as examples of IMF and World Bank failures.
(d) The author used Greece, Ireland, Italy and Kirghistan as examples of IMF and World Bank failures.

2. What was the main argument in favor of nationalizing banks?
(a) 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.
(b) The fundamental argument in favor of the nationalization was that the system had to be purged of risk-taking bank executives.
(c) The fundamental argument in favor of the nationalization was that such bailouts would be allowed only once.
(d) The fundamental argument in favor of the nationalization was that a weak economy would recover more quickly.

3. Conspiracy theorists connected the potential of world socialism to what organization?
(a) This conspiracy theory encompassed the entire world by connecting the Federal Reserve with socialism.
(b) This conspiracy theory encompassed the entire world by connecting the United Nations with socialism.
(c) This conspiracy theory encompassed the entire world by connecting the World Bank with socialism.
(d) This conspiracy theory encompassed the entire world by connecting the IMF with socialism.

4. 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 1980.
(c) First Pennsylvania Bank was bailed out in 1973.
(d) First Pennsylvania Bank was bailed out in 1975.

5. Why did banks make risky loans?
(a) Banks are required by the Federal Reserve to make a certain percentage of risky loans.
(b) Banks did not thoroughly check out the risk factor of some borrowers.
(c) The US Congress passed legislation that required banks to make ten percent of their loans to risky borrowers.
(d) The banks had incentive in terms of high profits for granting mortgages to home buyers who would not be able to pay the loans off, but who might be able to make interest payments.