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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What did the issuance of the first paper money lead to?
(a) Stronger economies evolved from the establishment of the paper money system.
(b) Banks evolved from the establishment of the paper money system.
(c) The lending process evolved from the establishment of the paper money system.
(d) The class system evolved from the establishment of the paper money system.

2. What resulted after the first electronic run on banks in 1983?
(a) The first electronic run on banks happened in 1983, leading to a collapse of the economy.
(b) The first electronic run on banks happened in 1983, leading to a hoarding of cash.
(c) The first electronic run on banks happened in 1983, leading to a massive bailout in the $6 billion range.
(d) The first electronic run on banks happened in 1983, leading to one trillion dollars being added to the deficit.

3. This conspiracy theory about the Federal Reserve pointed the finger at the meeting on Jekyll Island that occurred in 1910.
(a) The conspiracy theory surrounding the Federal Reserve was thought to have originated at the 1904 World's Fair.
(b) The conspiracy theory surrounding the Federal Reserve was thought to be hatched at the 1910 Jekyll Island meeting.
(c) The conspiracy theory surrounding the Federal Reserve was thought to have originated during the Great Depression.
(d) The conspiracy theory surrounding the Federal Reserve was thought to have originated during FDR's administration.

4. How is the Federal Reserve System reviewed in general?
(a) The Federal Reserve System had become known to have the strictest lending standards.
(b) The Federal Reserve System had become the economic leader of the country.
(c) The Federal Reserve System had become the nation's first source of lending.
(d) The Federal Reserve System had become the lender of last resort.

5. What is the author's main complaint?
(a) Central to the author's thesis was that a few scheming people were constantly and consistently strapping the government with the costs of the bad loans.
(b) Central to the author's thesis was that a few scheming people were constantly and consistently strapping the Federal Reserve with the costs of the bad loans.
(c) Central to the author's thesis was that a few scheming people were constantly and consistently strapping the IMF with the costs of the bad loans.
(d) Central to the author's thesis was that a few scheming people were constantly and consistently strapping the taxpayer with the costs of the bad loans.

6. What impacted housing prices in the Midwest states?
(a) House prices declined because homeowners due to the region's lack of good school systems.
(b) 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.
(c) The Rust Belt area of the country was not considered a desirable place in which to live.
(d) Housing prices declined because of poor construction standards in the area.

7. What did the Federal Reserve System help banks to do?
(a) The Federal Reserve helped banks keep individuals, businesses and entire countries perpetually in debt and working mostly for the banks.
(b) The Federal Reserve helped banks to stay in operation.
(c) The Federal Reserve helped banks by making special laws for them.
(d) The Federal Reserve helped banks keep a healthy cash flow.

8. How does a currency drain occur within the banking system?
(a) A currency drain occurs when the Federal government demands repayment of loans.
(b) A currency drain occurs when foreign investors withdrawn their funds from US banks.
(c) A currency drain occurs when the government devalues the currency system.
(d) A currency drain happened when many depositors wrote checks, and the receivers of the checks cashed them at another bank, thereby requiring more money from the first bank than it had on hand.

9. What unreasonable conclusion does the author make about the IMF and World Bank?
(a) The IMF and World Bank are corrupt organizations.
(b) Nothing the IMF or World Bank has done worked out successfully.
(c) The IMF and World Bank are operated by those with anti-American views.
(d) The IMF and World Bank are run by political operatives.

10. What impact did the Greek currency system have on the economy?
(a) The Greek currency system led to a stable economy.
(b) The Greek currency system led to other cultures creating similar systems.
(c) The Greek currency system led to an unstable economy.
(d) The Greek currency system had no effect on the economy.

11. What was the main argument in favor of nationalizing banks?
(a) The fundamental argument in favor of the nationalization was that a weak economy would recover more quickly.
(b) The fundamental argument in favor of the nationalization was that the system had to be purged of risk-taking bank executives.
(c) The fundamental argument in favor of the nationalization was that such bailouts would be allowed only once.
(d) The fundamental argument in favor of the nationalization was that the system was so broken that it simply could not be regulated enough to work without eventually nationalizing all banking and industry.

12. How was the nationalization of banks justified?
(a) Nationalization was necessary for the banking industry.
(b) Nationalization was necessary for the IMF.
(c) Nationalization was necessary for the nation's standing in the world.
(d) Nationalization was necessary for the public good.

13. What monetary system did the Constitution of the newly formed United States require?
(a) When the United States was formed, the Constitution required a paper currency system.
(b) When the United States was formed, the Constitution required a fractional money system.
(c) When the United States was formed, the Constitution required gold-backed money.
(d) When the United States was formed, the Constitution required that all precious metal be in the control of the government.

14. What did the author argue resulted from the establishment of the IMF and World Bank and the abandonment of the gold standard?
(a) The author maintained that these were further steps toward world socialism that resulted in mass murders, famine and economically destroyed countries.
(b) The author maintained that these were further steps toward establishing the United Nations as the world's preeminent authority that resulted in mass murders, famine and economically destroyed countries.
(c) The author maintained that these were further steps toward world socialism that resulted in mass murders, famine and economically destroyed countries.
(d) The author maintained that these were further steps toward a world dictatorship that resulted in mass murders, famine and economically destroyed countries.

15. How did many people feel about those who went too far into debt?
(a) Many felt that the nation had been taught to rely too much on credit.
(b) Many felt that people who were in debt had been encouraged to do so by political figures.
(c) Many argued that people who went too far into debt had done this on their own--nobody had forced people into the mortgages or credit cards.
(d) Many argued that those in deep debt should be forgiven much of their dept because of the reclining economy.

Short Answer Questions

1. What organization ensures the nationalization of banks?

2. What occurred when coinage was weakened through lower percentages of precious metal or completing stripped of such backing?

3. Why did banks ask for interest-only payments?

4. Why did all nations become socialistic in the New World Order?

5. What city became a major part of the welfare state in 1975?

(see the answer keys)

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