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 is a fractional money system?
(a) A fractional money system is one in which paper money was initially backed by gold but was later diluted when the gold was devalued.
(b) A fractional money system is one in which paper money was initially backed by gold but was later diluted with the backing of silver.
(c) A fractional money system is one in which paper money was initially backed by gold but was later diluted as more paper money was printed.
(d) A fractional money system is one in which paper money was initially backed by gold but was later diluted when the gold was invested in foreign interests.

2. Early banks were supported by what monetary system?
(a) Sometimes the banks were on a gold system, but most were backed by other commodities.
(b) Sometimes the banks were on a gold system, but most often they went to a fiat money system.
(c) Sometimes the banks were on a gold system, but most often they went to a silver-backed money system.
(d) Sometimes the banks were on a gold system, but most often they were backed by their governments.

3. What is the true function of the FDIC?
(a) The FDIC is another way to demonstrate the strength of the economy.
(b) The FDIC is another way to pay off the debt of the taxpayer.
(c) The FDIC is another way to pay off banking mistakes through the taxpayer.
(d) The FDIC is another way to support the people who use banks.

4. What did the author feel was the ultimate goal in establishing the IMF and the World Bank?
(a) The ultimate goal was to bring about a single world government that had control of all currencies.
(b) The ultimate goal was to establish the US dollar as the single world currency.
(c) The ultimate goal was to put the United Nations in control of world currency.
(d) The ultimate goal was to establish the Euro as the single world currency.

5. How did the development of paper money begin?
(a) The development of paper money started out as simply receipts issued by goldsmiths who kept other people's gold coins in their vaults.
(b) The development of paper money started out as simply receipts issued by goldsmiths who gave the people's gold coins to the government.
(c) The development of paper money started out as simply receipts issued by goldsmiths who were the first banks.
(d) The development of paper money started out as vouchers issued by the government.