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

Multiple Choice Questions

1. What was the relationship between the World Bank and the IMF?
(a) The IMF and World Bank were controlled by the United Nations.
(b) The IMF and World Bank were associated with but not tied directly to the United Nations.
(c) The IMF and World Bank were a division of the United Nations.
(d) The IMF and World Bank were closely associated with the United Nations.

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

3. Many people feel that the economic system has been rigged to favor what group of people?
(a) People have realized, at least a little bit, that our economic system had been rigged somewhere in the past to favor the rich by stealing from the government revenues.
(b) People have realized, at least a little bit, that our economic system had been rigged somewhere in the past to favor the middle classes by stealing from the rich and poor classes.
(c) People have realized, at least a little bit, that our economic system had been rigged somewhere in the past to favor the rich by stealing from the poor and middle classes.
(d) People have realized, at least a little bit, that our economic system had been rigged somewhere in the past to favor the poor by stealing from the rich and middle classes.

4. The nationalization of banks has occurred during conservative or liberal administrations?
(a) The nationalization of banks occurred during conservative as well as liberal administrations.
(b) The nationalization of banks occurred during conservative administrations.
(c) The nationalization of banks occurred when there is equal balance among all branches of government.
(d) The nationalization of banks occurred during liberal administrations.

5. Why was housing becoming difficult to obtain in the 1980s?
(a) Wages were not keeping up with inflation, which made housing harder to obtain.
(b) Congressional actions began to place restrictive regulations on house buying.
(c) The cost of housing was sky-rocketing.
(d) The construction industry was experiencing labor conflicts.

6. How were the policies of FDR's administration a departure from capitalism?
(a) They abandoned standards of the Federal Reserve that were supposed to have worked with a purely capitalistic system.
(b) They abandoned the free market principles 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.

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

8. What was the location of the meeting where the concept of the Federal Reserve was developed?
(a) The concept of the Federal Reserve was developed on Jekyll Island.
(b) The concept of the Federal Reserve was developed on Long Island.
(c) The concept of the Federal Reserve was developed on Alcatraz Island.
(d) The concept of the Federal Reserve was developed in the Hawaiin Islands.

9. How did poor regulation contribute to the Savings and Loan crisis of the 1980s?
(a) Government regulations allowed S&Ls to file individual bankruptcies.
(b) Government regulations allowed S&Ls to hoard money to increase their cash flow.
(c) Government regulations allowed S&Ls to claim assets that had no value, such as community good will toward them, and encouraged bad lending practices to increase home ownership.
(d) Government regulations allowed S&Ls did not require them to repay their debtors in full.

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

11. The banking system before the Federal Reserve System allowed banks to lend out what percentage of money against one percent in deposits.
(a) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to ninety-nine percent loaned out with only one percent in deposits.
(b) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to fithy percent loaned out with only one percent in deposits.
(c) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to twenty percent loaned out with only one percent in deposits.
(d) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to sixty percent loaned out with only one percent in deposits.

12. What happened when a debtor defaulted on a loan?
(a) When a debtor defaulted on a loan, he would ask loan payments be waived.
(b) When a debtor defaulted on a loan, he would ask the government for a guaranteed loan.
(c) When a debtor defaulted on a loan, he would first ask for more time to pay.
(d) When a debtor defaulted on a loan, he would stop making payments.

13. How did many people feel about those who went too far into debt?
(a) Many felt that people who were in debt had been encouraged to do so by political figures.
(b) 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.
(c) Many argued that those in deep debt should be forgiven much of their dept because of the reclining economy.
(d) Many felt that the nation had been taught to rely too much on credit.

14. What does the FDIC stand for?
(a) The FDIC stands for The Federal Debt Issuers Company.
(b) The FDIC stands for The First Depositor's Insurance Corporation.
(c) The FDIC stands for The Federal Deposit Insurance Corporation.
(d) The FDIC stands for The First Debt Institute of Connneticut.

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

Short Answer Questions

1. This conspiracy theory about the Federal Reserve pointed the finger at the meeting on Jekyll Island that occurred in 1910.

2. What redistribution of wealth occurred as a result of the establishment of the IMF and the World Bank?

3. What was the main cause of the economic meltdown in 2008?

4. What importance does political ideology have on the nationalization of banks?

5. How was some property converted for home ownership during the 1980s?

(see the answer keys)

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