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 resulted when paper money was not backed with gold or silver?
(a) Money not backed by precious metal led to inflation and political upheaval.
(b) Money not backed by precious metal led to deflation and political upheaval.
(c) Money not backed by precious metal led to higher deficits.
(d) Money not backed by precious metal led to booming economies and political stability.

2. Why was there skepticism about the author's analysis?
(a) Doubt existed because the author's entire analysis was an exercise in historical analysis from subsequent events, which is by nature flawed due to the guesswork involved.
(b) The author was found to be a lobbyist for conservative causes.
(c) The author was not considered an expert on the subject.
(d) The author refused to be questioned about his research.

3. How did the Federal Reserve System accomplish the nationalization of banks?
(a) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of short-term loans.
(b) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of bailouts.
(c) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of new legislation.
(d) The politics of the Federal Reserve System became new and inventive ways to justify the nationalization of banks through the use of risky loans.

4. Why did all nations become socialistic in the New World Order?
(a) In the New World Order, all nations became socialistic through United Nations declaration.
(b) In the New World Order, all nations became socialistic through the use of the IMF and direct loans from the industrialized nations to the undeveloped nations.
(c) In the New World Order, all nations became socialistic through deficit loan practices.
(d) In the New World Order, all nations became socialistic as a result of the abandonment of the gold standard.

5. What impact does deflation have on individuals who are repaying loans?
(a) Deflation causes people to repay more value on loans taken out during inflationary times.
(b) Deflation causes people to repay more value on loans taken out during a bull market.
(c) Deflation causes people to repay more value on loans taken out during a bear market.
(d) Deflation causes people to repay more value on loans during an economic downturn.