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

Multiple Choice Questions

1. What event sparked the conflicts that led to World War I?
(a) World War I started in 1914 with a global economic collapse.
(b) World War I started in 1914 with the assassination of the Archduke of Austria-Hungary, Francis Ferdinand.
(c) World War I started in 1914 with the intercession of the US into European affairs.
(d) World War I started in 1914 with the assassination of the Kaiser Wilhelm II of Germany.

2. What drove prices upward during the War of 1812?
(a) During the War of 1812, the US Congress created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.
(b) During the War of 1812, wildcat banks created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.
(c) During the War of 1812, the Federal Reserve created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.
(d) During the War of 1812, the central bank created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.

3. What disagreement did Alexander Hamilton and Thomas Jefferson have about a central bank?
(a) Alexander Hamilton wanted a limited central bank and Thomas Jefferson wanted its authority to be more far-reaching.
(b) Alexander Hamilton favored a central bank and Thomas Jefferson was against it.
(c) Thomas Jefferson favored a central bank and Alexander Hamilton was against it.
(d) Alexander Hamilton favored a powerful central bank and Thomas Jefferson was for limited powers.

4. What occurred after the economic downturn in 1818?
(a) After the economic downturn in 1818, a period of deflation followed.
(b) After the economic downturn in 1818, layoffs and bankruptcies followed.
(c) After the economic downturn in 1818, loans were difficult to obtain.
(d) After the economic downturn in 1818, revenues were bolstered by increased taxation.

5. How were some organizations able to profit during the boom-bust cycle?
(a) Big fortunes were also made by powerful financiers through market manipulations. The Bank of England, the House of Morgan and the Rothschilds were among the winners.
(b) Big fortunes were also made by powerful financiers by hoarding cash. The Bank of England, the House of Morgan and the Rothschilds were among the winners.
(c) Big fortunes were also made by powerful financiers through illegal operations. The Bank of England, the House of Morgan and the Rothschilds were among the winners.
(d) Big fortunes were also made by powerful financiers through legislation that favored them. The Bank of England, the House of Morgan and the Rothschilds were among the winners.

6. Why did governments favor banks based on a fiat money system?
(a) Governments liked the fiat money because it allowed them to raise taxes.
(b) Governments liked the fiat money because it was a way of confiscating wealth from the rich and redistributing it to the poor.
(c) Governments liked the fiat money because it allowed them to hoard gold.
(d) Governments liked the fiat money because it was a way of confiscating wealth from the citizens without raising taxes.

7. When was the Federal Reserve Act passed?
(a) The Federal Reserve Act passed by large majorities in Congress just after World War I ended.
(b) The Federal Reserve Act passed by large majorities in Congress just before the stock market crash of 1929.
(c) The Federal Reserve Act passed by large majorities in Congress just before World War II commenced.
(d) The Federal Reserve Act passed by large majorities in Congress just before Christmas, 1913.

8. What decade marked the beginning of a tremendous surge in U.S. debt?
(a) The U.S. grew its debt tremendously since 1960.
(b) The U.S. grew its debt tremendously since 1910.
(c) The U.S. grew its debt tremendously since 1930.
(d) The U.S. grew its debt tremendously since 1950.

9. The Rothschild family held sway over most political leaders with the exception of what historic figure?
(a) The Rothschild family held no political influence over Vladimir Lenin.
(b) The Rothschild family held no political influence over Napoleon.
(c) The Rothschild family held no political influence over Kaiser Wilhelm II.
(d) The Rothschild family held no political influence over Adolph Hitler.

10. What were the sales of English and French war bonds used for?
(a) Most of the money from the sales of the war bonds were spent on German war materials.
(b) Most of the money from the sales of the war bonds were spent on Russian artillery.
(c) Most of the money from the sales of the war bonds were spent on uniforms and supplies for the soldiers.
(d) Most of the money from the sales of the war bonds were spent on American war materials.

11. When did governmental typically find it necessary to print more paper money?
(a) Governments simply printed more money when needed, usually during political unrest.
(b) Governments simply printed more money when needed, usually during times of war.
(c) Governments simply printed more money when needed, usually during legislative battles.
(d) Governments simply printed more money when needed, usually during economic downturns.

12. The sinking of the Lusitania provoked what country to enter into World War I?
(a) The sinking of the Lusitania and the death of its passengers, many of whom were British citizens, brought the England into the war.
(b) The sinking of the Lusitania and the death of its passengers, many of whom were German citizens, brought the Germany into the war.
(c) The sinking of the Lusitania and the death of its passengers, many of whom were French citizens, brought the France into the war.
(d) The sinking of the Lusitania and the death of its passengers, many of whom were US citizens, brought the US into the war.

13. What resulted from the Mandrake Mechanism?
(a) The results of this system included social planning and hidden taxation and currency devaluation.
(b) The results of this system included social planning and tax relief.
(c) The results of this system included social planning and hidden taxation by means of inflation.
(d) The results of this system included social planning and hidden taxation by means of deflation.

14. Why was the use of fiat money disallowed in the United States?
(a) The reason the framers of the Constitution elected to eliminate fiat money was because rampant inflation had recently occurred, and the pain of that was still fresh in the framers' minds.
(b) The reason the framers of the Constitution elected to eliminate fiat money was because a severe economic downturn had recently occurred, and the pain of that was still fresh in the framers' minds.
(c) The reason the framers of the Constitution elected to eliminate fiat money was because rampant deflation had recently occurred, and the pain of that was still fresh in the framers' minds.
(d) The reason the framers of the Constitution elected to eliminate fiat money was because a bank run had recently occurred, and the pain of that was still fresh in the framers' minds.

15. What caused England to nearly go broke?
(a) The British pound suffered in the US market, which led to the country nearly going broke.
(b) The British pound suffered in the Asian market, which led to the country nearly going broke.
(c) The British pound suffered in the European market, which led to the country nearly going broke.
(d) The British pound suffered in the international markets, which led to the country nearly going broke.

Short Answer Questions

1. What was really behind the Russian Bolshevik Revolution?

2. What would result if the money system returned to the gold standard?

3. What caused the collapse of the Bank of Hamburg in 1813?

4. What financing was behind the second Russian revolution?

5. What role did J. P. Morgan have in Milner's secret society?

(see the answer keys)

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