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 risky loan activities have banks participated in?
(a) Banks loaned depositors' money out to to the US government in times of economic downturns.
(b) Banks loaned depositors' money to foreign governments who refused to repay the loans.
(c) Banks loaned depositors' money out to risky debtors who would likely not be able to pay the loans off.
(d) Banks loaned depositors' money out to poor people during the Great Depression.

2. Why has bank fraud never been eliminated?
(a) The Federal Reserve was controlled by outside political interests that fostered fraud.
(b) Financial experts were taught that the way banking worked in the US was the only way it could work, and so the fraud kept on going.
(c) The Federal Reserve was influenced by lobbyists who advocated fraudulent regulations.
(d) The Federal Reserve tried to institute European standards which led to the perpetuation of fraud.

3. What is the basic structure of the U.S. monetary system?
(a) The monetary system in the U.S. was constructed for debt to be necessary in order for the economy to flourish.
(b) The monetary system in the U.S. was constructed for debt to be necessary in order for Federal Reserve to remain in control of monetary concerns.
(c) The monetary system in the U.S. was constructed for debt to be necessary in order for the money supply to remain in existence.
(d) The monetary system in the U.S. was constructed for debt to be necessary in order for the Congress to pass tax increases.

4. The Rothschild family held sway over most political leaders with the exception of what historic figure?
(a) The Rothschild family held no political influence over Vladimir Lenin.
(b) The Rothschild family held no political influence over Kaiser Wilhelm II.
(c) The Rothschild family held no political influence over Napoleon.
(d) The Rothschild family held no political influence over Adolph Hitler.

5. What happens when the Federal Reserve System prints new money?
(a) When the Federal Reserve System creates new money, it improves the overall economy.
(b) When the Federal Reserve System creates new money, it increases the value of the money already in the system.
(c) When the Federal Reserve System creates new money, it dilutes the value of the money already in the system.
(d) When the Federal Reserve System creates new money, it causes the stock market to rally.