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

Multiple Choice Questions

1. 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 the minutes of secret Jekyll Island meeting 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 a document obtained by the CIA to support the idea of conspiracy to destroy the US economy.

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

3. What is the basic structure of the U.S. monetary system?
(a) The monetary system in the U.S. was constructed for debt to be necessary in order for Federal Reserve to remain in control of monetary concerns.
(b) The monetary system in the U.S. was constructed for debt to be necessary in order for the economy to flourish.
(c) The monetary system in the U.S. was constructed for debt to be necessary in order for the money supply to remain in existence.
(d) The monetary system in the U.S. was constructed for debt to be necessary in order for the Congress to pass tax increases.

4. What country was formed after the second Russian revolution?
(a) The USSR developed after the second Russian revolution.
(b) The country of Georgia was established after the second Russian revolution.
(c) Kurdistan was formed after the Russian revolution.
(d) New Poland was formed after the second Russian revolution.

5. What drove prices upward during the War of 1812?
(a) 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.
(b) 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.
(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 US Congress created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.

6. 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 using over twenty percent of its revenues for loans.
(b) In 1609 the Bank of Amsterdam was formed and restricted from making loans with its deposits.
(c) In 1609 the Bank of Amsterdam was formed and restricted from making more loans than the deposits it received.
(d) In 1609 the Bank of Amsterdam was formed and restricted from taking foreign deposits.

7. How did England and France, at least in part, finance their wars?
(a) England and France went heavily into war debt causing them to reduce the sizes of their armies.
(b) England and France went heavily into war debt until they hired political financial excerpts from the Far East.
(c) England and France went heavily into debt until the countries sold their war bonds to the US.
(d) England and France went heavily into debt until the countries had to hire the House of Morgan in partnership with the Rothschilds to sell their war bonds.

8. What did communism become known as in the 1980s?
(a) What was called communism had its name changed to socialism, although the system worked exactly the same.
(b) What was called communism had its name changed to social democracy, although the system worked exactly the same.
(c) What was called communism had its name changed to social capitalism, although the system worked exactly the same.
(d) What was called communism had its name changed to fascism, although the system worked exactly the same.

9. Which European bank become the model for the Federal Reserve System?
(a) The Bank of Madrid became the model for the Federal Reserve System.
(b) The Bank of England became the model for the Federal Reserve System.
(c) Bank One of Rome became the model for the Federal Reserve System.
(d) First Banc of France became the model for the Federal Reserve System

10. After the 1950s, what was the standard of measure used to estimate the US debt?
(a) The debt was measured in millions of dollars.
(b) The debt was measured in zillions of dollars.
(c) The debt was measured in trillions of dollars.
(d) The debt was measured by the gold standard.

11. What do some radical conspiracy theorists believe about the 9/11 attacks?
(a) That Russia had actually carried out the 9/11 terrorist attacks on the World Trade Center in New York City.
(b) That the Chinese government had actually carried out the 9/11 terrorist attacks on the World Trade Center in New York City.
(c) The U.S. government had actually carried out the 9/11 terrorist attacks on the World Trade Center in New York City.
(d) That the ultra-conservative right-wing had actually carried out the 9/11 terrorist attacks on the World Trade Center in New York City.

12. Why was the language of the Federal Reserve Act kept intentionally vague?
(a) The language in the bill was made intentionally vague so that the general public would be kept in the dark about its powers.
(b) The language in the bill was made intentionally vague so that the US could remain the world's strongest economy.
(c) The language in the bill was made intentionally vague and open to future interpretations.
(d) The language in the bill was made intentionally vague to protect national security.

13. What action was taken to keep England from sliding into depression?
(a) To keep Britain from sliding into depression, the U.S. dollar was intentionally deflated through the Federal Reserve System.
(b) To keep Britain from sliding into depression, the U.S. dollar was intentionally inflated through the US Congress.
(c) To keep Britain from sliding into depression, the U.S. dollar was intentionally inflated through the Federal Reserve System.
(d) To keep Britain from sliding into depression, the U.S. dollar was intentionally inflated through an activist Supreme Court.

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

15. What realistic scenario was discussed in Chapter 26 involving the U.S. monetary system?
(a) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on silver, with gold as an auxiliary reserve.
(b) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on platinum, with gold as an auxiliary reserve.
(c) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on gold, with silver as an auxiliary reserve.
(d) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on silver, with platinum as an auxiliary reserve.

Short Answer Questions

1. What system was in control of the economy before the Federal Reserve System was established?

2. Why did governments favor banks based on a fiat money system?

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

4. How were some organizations able to profit during the boom-bust cycle?

5. The sinking of the Lusitania provoked what country to enter into World War I?

(see the answer keys)

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