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 caused the collapse of the Bank of Hamburg in 1813?
(a) Formed in the early 1600s, the Bank of Hamburg stayed solvent until World War I.
(b) Formed in the early 1600s, the Bank of Hamburg stayed solvent until the stock market crash of 1929.
(c) Formed in the early 1600s, the Bank of Hamburg stayed solvent until the Nazi Party rose to power.
(d) Formed in the early 1600s, the Bank of Hamburg stayed solvent until Napoleon captured it in 1813.

2. Why was gold considered the ideal metal behind a monetary system?
(a) Gold was considered the perfect metal because it was the most common of the precious metals.
(b) Gold was considered the perfect metal because it was the most sought after of the precious metals.
(c) Gold was considered the perfect metal because of its value and availability.
(d) Gold was considered the perfect metal because of its intrinsic value and scarcity throughout history.

3. What caused the economic downturn in 1818?
(a) In 1818 an economic downturn began as the banks tightened loan requirements and shrunk the money supply by calling in old loans.
(b) In 1818 an economic downturn began as the IMF tightened loan requirements and shrunk the money supply by calling in old loans.
(c) In 1818 an economic downturn began as the Federal Reserve tightened loan requirements and shrunk the money supply by calling in old loans.
(d) In 1818 an economic downturn began as the US Congress tightened loan requirements and shrunk the money supply by calling in old loans.

4. Why were S&Ls popular with those seeking loans in the 1980s?
(a) The S&Ls were offering better interest rates on deposits than banks, and that attracted money into them.
(b) It was easier for those seeking loans to be approved by S&Ls.
(c) S&L loans were often approved on the spot.
(d) S&L loans allowed customers to defer payments for up to one year.

5. How were the policies of FDR's administration a departure from capitalism?
(a) They abandoned the free market principles that were supposed to have worked with a purely capitalistic system.
(b) They abandoned standards of the Federal Reserve that were supposed to have worked with a purely capitalistic system.
(c) They abandoned Congressional banking regulations that were supposed to have worked with a purely capitalistic system.
(d) They abandoned the principles of the International Monetary Fund that were supposed to have worked with a purely capitalistic system.