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

Multiple Choice Questions

1. How did some organizations profit during boom-bust cycles by buying bonds?
(a) Buying up bonds during busts gained tremendous value ten years later.
(b) Buying up bonds during booms gained tremendous value during bust times.
(c) Buying up bonds during busts gained tremendous value during boom times.
(d) Buying up bonds during busts gained tremendous value during the Great Depression.

2. What were the results of the Russian revolutions?
(a) The first revolution brought in a monarchy, while the second brought in a tyrannical government.
(b) The first revolution brought in a a somewhat democratic government, while the second brought in a a somewhat democratic government.
(c) The first revolution brought in a somewhat democratic government, while the second brought in an oligarchy.
(d) The first revolution brought in a somewhat democratic government, while the second brought in a a somewhat democratic government.

3. What occurred after the Second Bank of the United States was created?
(a) The Second Bank of the United States was created in 1816 and caused inflationary conditions.
(b) The Second Bank of the United States was created in 1816 and created a booming economy.
(c) The Second Bank of the United States was created in 1816 and introduced the boom-bust cycle.
(d) The Second Bank of the United States was created in 1816 and caused a period of deflation.

4. What caused the boom-bust cycle in the U.S. economy following the Civil War?
(a) The boom-bust cycle was due to the establishment of the Federal Reserve.
(b) The boom-bust cycle was due to the lack of oversight by the US Congress.
(c) The boom-bust cycle was due to the widespread use of fiat money and the implementation of many economic tricks that were doomed to failure.
(d) The boom-bust cycle was due to the widespread use of paper currency not based by the gold standard.

5. What was the goal of the secret society founded by Lord Alfred Milner?
(a) A secret society, founded by Lord Alfred Milner, had as its goal the dominance of the world through money controls.
(b) A secret society, founded by Lord Alfred Milner, had global peace as its main goal.
(c) A secret society, founded by Lord Alfred Milner, had as its goal the eradication of disease and hunger.
(d) A secret society, founded by Lord Alfred Milner, had as its goal the democratization of the entire world.

6. What was really behind the Russian Bolshevik Revolution?
(a) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations the Axis Powers.
(b) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations of a handful of financiers.
(c) The Russian Bolshevik Revolution was a revolution of and for the people.
(d) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations of foreign interests.

7. What restrictions were placed on the Bank of Amsterdam which was established in 1609?
(a) In 1609 the Bank of Amsterdam was formed and restricted from taking foreign deposits.
(b) In 1609 the Bank of Amsterdam was formed and restricted from using over twenty percent of its revenues for loans.
(c) In 1609 the Bank of Amsterdam was formed and restricted from making loans with its deposits.
(d) In 1609 the Bank of Amsterdam was formed and restricted from making more loans than the deposits it received.

8. What caused the collapse of the Bank of Hamburg in 1813?
(a) Formed in the early 1600s, the Bank of Hamburg stayed solvent until the stock market crash of 1929.
(b) Formed in the early 1600s, the Bank of Hamburg stayed solvent until Napoleon captured it in 1813.
(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 World War I.

9. What deal did the U.S. make with England during World War I regarding the British ship Lusitania?
(a) In a deal struck between England and the US, the British ship Lusitania was set up to be sunk by a U-boat operating in the North Atlantic near Ireland.
(b) In a deal struck between England and the US, the British ship Lusitania was set up to be sunk by a U-boat operating off the coast of Italy.
(c) In a deal struck between England and the US, the British ship Lusitania ambushed a U-boat operating in the North Atlantic near Ireland.
(d) In a deal struck between England and the US, the British ship Lusitania was set up to be sunk by a U-boat operating in the Black Sea.

10. What document did the author provide to support the idea of a conspiracy to destroy the U.S. economy?
(a) The author used a document named the Report from Iron Mountain to support the idea of conspiracy to destroy the US economy.
(b) The author used a document obtained by the CIA to support the idea of conspiracy to destroy the US economy.
(c) The author used a confidential report found in Congressional archives to support the idea of conspiracy to destroy the US economy.
(d) The author used the minutes of secret Jekyll Island meeting to support the idea of conspiracy to destroy the US economy.

11. 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 America was chartered in 1791.
(c) The Bank of the United States was chartered in 1791.
(d) The Bank of New England was chartered in 1791.

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

13. What was the real cause of the Great Depression of the 1930s?
(a) The Great Depression was caused in part by global instability caused by the threat of world war.
(b) The Great Depression was caused in part by government intervention into state banking systems.
(c) The Great Depression was caused in part by the lack of US Congressional oversight in the actions of the Federal Reserve.
(d) The Great Depression was caused in part by government intervention in wage and price controls and by subsidizing farmers and public works projects.

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

15. What financing was behind the second Russian revolution?
(a) The second Russian revolution was financed by European countries and the US.
(b) The second Russian revolution was financed by the Communist bloc.
(c) The second Russian revolution was financed by Asian countries and the US.
(d) The second Russian revolution was financed by England and France.

Short Answer Questions

1. What two social classes does the author predict for the future?

2. What were the sales of English and French war bonds used for?

3. When was the first central bank founded in the US?

4. What realistic scenario was discussed in Chapter 26 involving the U.S. monetary system?

5. How did England and France, at least in part, finance their wars?

(see the answer keys)

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