This quiz consists of 5 multiple choice and 5 short answer questions through Section III. The New Alchemy, Chapters 11-12 The Rothschild Formula; Sink the Lusitania!.

Multiple Choice Questions

1. What caused the economy to get into such a state that the government was compelled to bail out banks?
(a) The International Monetary Fund had become dangerously unstable.
(b) The US Congress failed to pass legislation that would have boosted the economy.
(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.

2. How did governments devalue currency in fiat money systems?
(a) This was accomplished by devaluing the currency through regulation.
(b) This was accomplished by devaluing the currency through taxation..
(c) This was accomplished by devaluing the currency through legislation.
(d) This was accomplished by devaluing the currency through use of the printing press.

3. What is the main transport of both Amtrak and Conrail?
(a) Amtrak is the main carrier for government cargo and Conrail is available to the general public.
(b) Amtrak had been the passenger side of Penn Central, while Conrail had been the freight side.
(c) Amtrak operates as a commuter train while Conrail operates as a long-distance carrier.
(d) Amtrak had been the freight side of Penn Central, while Conrail had been the passenger side.

4. In what year was First Pennsylvania Bank bailed out?
(a) First Pennsylvania Bank was bailed out in 1973.
(b) First Pennsylvania Bank was bailed out in 1972.
(c) First Pennsylvania Bank was bailed out in 1980.
(d) First Pennsylvania Bank was bailed out in 1975.

5. When the entire banking system failed, what did the Federal government turn to to bolster the failed back up system?
(a) When the whole banking system collapsed, the debt ceiling was raised to bolster the failed system back up.
(b) When the whole banking system collapsed, foreign investments went into bolstering the failed system back up.
(c) When the whole banking system collapsed, money from newly issued government bonds went into bolstering the failed system back up.
(d) When the whole banking system collapsed, taxpayer money went into bolstering the failed system back up.