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. Why was the "Federal Reserve System," so named?
(a) The "Federal Reserve System" was so named because its offices were not state run.
(b) The "Federal Reserve System" was so named so that people would think it was part of the Federal government.
(c) The "Federal Reserve System" was so named so that people would know that it was part of the Federal government.
(d) The "Federal Reserve System" was so named so that people would have respect for it.

2. What is the definition of a public run on a bank?
(a) A public run occurs when a bank runs out of cash.
(b) A public run was when many depositors demanded their cash from a bank and wiped out the bank's reserves.
(c) A public run is when the government puts a bank up for sale.
(d) A public run occurs when the Federal government takes ownership of a bank.

3. What is laudable about the author's work?
(a) The author did provide a convincing argument that our economic system had been broken at some time in the past.
(b) The author provided a clear and concise conservative viewpoint.
(c) The author had majored in international economics.
(d) The author provided a clear and concise liberal viewpoint.

4. What culture was the first to create a currency system based on gold and silver?
(a) The ancient Greeks came up with the idea to make coins out of gold and silver.
(b) The ancient Romans came up with the idea to make coins out of gold and silver.
(c) The British came up with the idea to make coins out of gold and silver.
(d) Alexander the Great came up with the idea to make coins out of gold and silver.

5. 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 new legislation.
(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 risky loans.
(d) 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.