This quiz consists of 5 multiple choice and 5 short answer questions through Section IV. A Tale of Three Banks, Chapters 16-19 The Creature Comes to America; A Den of Vipers; Loaves and Fishes, and Civil War; Greenbacks and Other Crimes.

Multiple Choice Questions

1. In what year was the concept of the Federal Reserve first developed?
(a) The concept of the Federal Reserve was developed in 1952.
(b) The concept of the Federal Reserve was developed in 1920.
(c) The concept of the Federal Reserve was developed in 1966.
(d) The concept of the Federal Reserve was developed in 1910?

2. What has caused the economy's boom-bust cycle?
(a) The Federal Reserve's advertised purpose was to stabilize the economy, but depressions and recessions have resulted instead in a boom-bust cycle.
(b) The economy's boom-bust cycle is caused from people hoarding cash.
(c) The economy's boom-bust cycle is caused by the instability of the International Monetary Fund.
(d) The economy's boom-bust cycle is caused from trade deficits.

3. What often occurs to a conspiracy theory when deceit is not used to strengthen their case?
(a) Without using deceit, conspiracy theories are often debated in a higher education venue.
(b) Without using deceit, conspiracy theories are proven on the arena of public opinion.
(c) Without using deceit, conspiracy theories usually stand on their own merit.
(d) Without the use of evasive tactics, the conspiracy theories often fall apart in their early stages of development.

4. Since its inception in 1910, the Federal Reserve had made what decisions about bank bailouts?
(a) Since its inception in 1910, the Federal Reserve had decided that medium-sized banks would get the majority of bailouts.
(b) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts only if they could prove they had complied with all regulations.
(c) Since its inception in 1910, the Federal Reserve had decided that large banks would be the only banks to get bailouts.
(d) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts, medium-sized banks would get some bailouts, and small banks would be left to fail or be acquired by larger banks.

5. What caused the economy to get into such a state that the government was compelled to bail out banks?
(a) The American people were taking out too many home loans.
(b) The argument could be made that lax lending practices and overly speculative investments had forced the government to use tax dollars in the bailouts.
(c) The US Congress failed to pass legislation that would have boosted the economy.
(d) The International Monetary Fund had become dangerously unstable.