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 was the impact of the creation of new money on the currency?
(a) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was a devaluing of the currency.
(b) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was increasing the value of the currency.
(c) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality it was strengthening the currency in the world market.
(d) People considered the creation of new money inflationary as the prices of goods and services rose but had no impact on the currency.

2. What debt would be incurred by future generations from currency devaluation?
(a) National debts were paid right away from the currency devaluation and only interest payments would be inherited by future generations.
(b) National debts were paid right away from the currency devaluation and only national growth expenses would be inherited by future generations.
(c) National debts were paid right away from the currency devaluation and only deficits would be inherited by future generations.
(d) National debts were paid right away from the currency devaluation and only debts to foreign investors would be inherited by future generations.

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

4. What did the U.S. government do to support banks?
(a) The U.S. government guaranteed depositor money through the FDIC.
(b) The U.S. government forgave the debot of failing banks.
(c) The U.S. government guaranteed depositor money through Congress.
(d) The U.S. government guaranteed depositor money through private insurance companies.

5. What U.S. president removed the gold standard from the US dollar?
(a) President Lincoln took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(b) President Nixon took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(c) President Wilson took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.
(d) President Kennedy took the U.S. dollar off its gold backing so that dollars could not be redeemed for gold.