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

Multiple Choice Questions

1. 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 by tampering with national cash flow.
(b) Biddle fought back by instigating a depression through the state banks.
(c) Biddle fought back by instigating a depression through his economic control.
(d) Biddle fought back by instigating a depression through Congressional legislation.

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

3. 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 deflation 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 a bank run 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 rampant inflation had recently occurred, and the pain of that was still fresh in the framers' minds.

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 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 widespread use of paper currency not based by the gold standard.
(d) The boom-bust cycle was due to the establishment of the Federal Reserve.

5. What was the name of the central bank established in 1791?
(a) The Bank of the United States was chartered in 1791.
(b) The Bank of New England was chartered in 1791.
(c) The Bank of America was chartered in 1791.
(d) The Bank of the Philadelphia was chartered in 1791.

6. What did the USSR implement instead of true Communism?
(a) The USSR never implemented true Communism but became a money-making machine for the secret money society that was controlled by the United Nations.
(b) The USSR never implemented true Communism but became a money-making machine for the Axis powers.
(c) The USSR never implemented true Communism but became a money-making machine for the secret money society that had turned into several branches called Round Tables.
(d) The USSR never implemented true Communism but became a money-making machine for those trying to establish a quasi-capitalist system of government.

7. How were German U-boats successful in World War I?
(a) U-boats and these were highly successful at disrupting the flow of war materials to France.
(b) U-boats and these were highly successful at disrupting the flow of war materials to England.
(c) U-boats and these were highly successful at disrupting the flow of war materials from America.
(d) U-boats and these were highly successful at disrupting the progression of forces from England.

8. What did the author predict would become the world government?
(a) China would become the world government.
(b) The UN was the organization that would become the world government.
(c) Europe would become the world government.
(d) The US would become the world government.

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

10. How were some organizations able to profit during the boom-bust cycle?
(a) 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.
(b) 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.
(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 market manipulations. The Bank of England, the House of Morgan and the Rothschilds were among the winners.

11. 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 Kaiser Wilhelm II.
(b) The Rothschild family held no political influence over Adolph Hitler.
(c) The Rothschild family held no political influence over Vladimir Lenin.
(d) The Rothschild family held no political influence over Napoleon.

12. What portion of the U.S. debt did a large portion of the tax dollar pay for?
(a) The U.S. debt continued to grow with a large portion of tax dollar going to entitlement programs.
(b) The U.S. debt continued to grow with a large portion of tax dollar going to US war efforts.
(c) The U.S. debt continued to grow with a large portion of tax dollar going into paying the principal on the debt.
(d) The U.S. debt continued to grow with a large portion of tax dollar going into paying only the interest on the debt.

13. 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 in the Black Sea.
(c) 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.
(d) In a deal struck between England and the US, the British ship Lusitania ambushed a U-boat operating in the North Atlantic near Ireland.

14. 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 uniforms and supplies for the soldiers.
(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 American war materials.
(d) Most of the money from the sales of the war bonds were spent on German war materials.

15. 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 1930.
(c) The U.S. grew its debt tremendously since 1950.
(d) The U.S. grew its debt tremendously since 1910.

Short Answer Questions

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

2. What would be the role of the IMF and World Bank in the new world order?

3. What document did the author provide to support the idea of a conspiracy to destroy the U.S. economy?

4. How did large banks react to the Federal Reserve Act?

5. What drove prices upward during the War of 1812?

(see the answer keys)

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