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 location of the meeting where the concept of the Federal Reserve was developed?
(a) The concept of the Federal Reserve was developed on Jekyll Island.
(b) The concept of the Federal Reserve was developed in the Hawaiin Islands.
(c) The concept of the Federal Reserve was developed on Alcatraz Island.
(d) The concept of the Federal Reserve was developed on Long Island.

2. What occurred when coinage was weakened through lower percentages of precious metal or completing stripped of such backing?
(a) Inflation and political turmoil occurred when the coinage was debased through lower percentages of precious metal or none at all.
(b) Paper money was seen to be the superior monetary system when the coinage was debased through lower percentages of precious metal or none at all.
(c) Deflation resulted when the coinage was debased through lower percentages of precious metal or none at all.
(d) Stock market instability occurred when the coinage was debased through lower percentages of precious metal or none at all.

3. What do some feel was the reason for establishing the Federal Reserve?
(a) The Federal Reserve System was concocted not to stabilize the economy and create an economy that was distributed equally among the population.
(b) The Federal Reserve System was concocted to stabilize the economy.
(c) The Federal Reserve System was concocted not to stabilize the economy but to put economic control into the hands of a few people who agreed not to compete with one another.
(d) The Federal Reserve System was concocted to put economic control into the hands of the people.

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

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