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

Multiple Choice Questions

1. How were some organizations able to profit during the boom-bust cycle?
(a) 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.
(b) 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.
(c) 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.
(d) 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.

2. What system was in control of the economy before the Federal Reserve System was established?
(a) Before the Federal Reserve System came into being, groundwork was laid by the few people who controlled banking.
(b) Before the Federal Reserve System came into being, groundwork was laid by the few people who controlled banking.
(c) Before the Federal Reserve System came into being, groundwork was laid by the few people who controlled banking.
(d) Before the Federal Reserve System came into being, groundwork was laid by the few people who controlled banking.

3. How did governments devalue currency in fiat money systems?
(a) This was accomplished by devaluing the currency through use of the printing press.
(b) This was accomplished by devaluing the currency through taxation..
(c) This was accomplished by devaluing the currency through legislation.
(d) This was accomplished by devaluing the currency through regulation.

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

5. What two social classes does the author predict for the future?
(a) Only two classes of people would exist--the ruling class and those ruled by it.
(b) Only two classes of people would exist--the middle class and the poor.
(c) Only two classes of people would exist--the rich and the poor.
(d) Only two classes of people would exist--the rich and the middle class.

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

7. What caused wildcat banks to develop?
(a) The central bank reintroduced inflation, and as the country expanded, wildcat banks developed in the wilderness.
(b) The Federal Reserve reintroduced inflation, and as the country expanded, wildcat banks developed in the wilderness.
(c) The central bank reintroduced deflation, and as the country expanded, wildcat banks developed in the wilderness.
(d) The central bank provided generous funds for loans, and as the country expanded, wildcat banks developed in the wilderness.

8. What caused the boom-bust cycle in the U.S. economy following the Civil War?
(a) The boom-bust cycle was due to the lack of oversight by the US Congress.
(b) 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.
(c) The boom-bust cycle was due to the establishment of the Federal Reserve.
(d) The boom-bust cycle was due to the widespread use of paper currency not based by the gold standard.

9. How did Nicholas Biddle, leader of The Second Bank, respond to President Andrew Jackson's opposition to him?
(a) Biddle fought back by instigating a depression through his economic control.
(b) Biddle fought back by instigating a depression by tampering with national cash flow.
(c) Biddle fought back by instigating a depression through the state banks.
(d) Biddle fought back by instigating a depression through Congressional legislation.

10. What bank was The Bank of North America modeled after?
(a) The Continental Congress established The Bank of North America in 1781, and it was modeled after the Bank of Russia.
(b) The Continental Congress established The Bank of North America in 1781, and it was modeled after the Bank of France.
(c) The Continental Congress established The Bank of North America in 1781, and it was modeled after the Bank of Germany.
(d) The Continental Congress established The Bank of North America in 1781, and it was modeled after the Bank of England.

11. 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 global instability caused by the threat of world war.
(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 the lack of US Congressional oversight in the actions of the Federal Reserve.

12. What would result if the money system returned to the gold standard?
(a) A return to the gold standard would require a period of financial pain and many fortunes would evaporate.
(b) A return to the gold standard would result in instability and deflationary times.
(c) A return to the gold standard would set off a boom-bust cycle.
(d) A return to the gold standard would result in instability and inflationary times.

13. What role did J. P. Morgan have in Milner's secret society?
(a) J.P. Morgan financed all sides of political struggles to boost his chances for elective office.
(b) J.P. Morgan financed the sides of political struggles that agreed with his liberal views.
(c) J.P. Morgan financed all sides of political struggles so that no matter who won, that side would be beholding to him and his organizations.
(d) J.P. Morgan financed the sides of political struggles that agreed with his conservative views.

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

15. 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 economic downturns.
(c) Governments simply printed more money when needed, usually during times of war.
(d) Governments simply printed more money when needed, usually during legislative battles.

Short Answer Questions

1. What was really behind the Russian Bolshevik Revolution?

2. What do some radical conspiracy theorists believe about the 9/11 attacks?

3. What financing was behind the second Russian revolution?

4. How did some organizations profit during boom-bust cycles by buying bonds?

5. What debt would be incurred by future generations from currency devaluation?

(see the answer keys)

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