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

2. Who does the Federal Reserve depend on to bail out the country in times of economic collapse?
(a) The Federal Reserve turns to the taxpayer to bail out the country in times of economic collapse.
(b) The Federal Reserve turns to Congress to bail out the country in times of economic collapse.
(c) The Federal Reserve turns to the banks to bail out the country in times of economic collapse.
(d) The Federal Reserve turns to the foreign investors to bail out the country in times of economic collapse.

3. What restricted the the states from using fiat money?
(a) The Constitution specifically restricted the use of fiat money by the states.
(b) The US Congress specifically restricted the use of fiat money by the states.
(c) The Federal Reserve specifically restricted the use of fiat money by the states.
(d) The International Monetary Fund specifically restricted the use of fiat money by the states.

4. What was the name of the central bank established in 1791?
(a) The Bank of the Philadelphia was chartered in 1791.
(b) The Bank of the United States was chartered in 1791.
(c) The Bank of America was chartered in 1791.
(d) The Bank of New England was chartered in 1791.

5. What impacted housing prices in the Midwest states?
(a) The Rust Belt area of the country was not considered a desirable place in which to live.
(b) House prices declined because homeowners due to the region's lack of good school systems.
(c) The depression in the rust belt that included northern Midwestern states such as Michigan, Ohio and Pennsylvania reduced the number of potential home buyers which in turn depressed housing prices in those areas.
(d) Housing prices declined because of poor construction standards in the area.