View a FREE sample

This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What is the true function of the FDIC?
(a) The FDIC is another way to support the people who use banks.
(b) The FDIC is another way to pay off the debt of the taxpayer.
(c) The FDIC is another way to demonstrate the strength of the economy.
(d) The FDIC is another way to pay off banking mistakes through the taxpayer.

2. What is the Fabian plan?
(a) The Fabian plan involved making the entire world a capitalistic society.
(b) The Fabian plan had to do with making the world one big socialized government.
(c) The Fabian plan had to do with making the world one big democracy.
(d) The Fabian plan had to do with making the world a world without political .

3. How does a currency drain occur within the banking system?
(a) A currency drain occurs when the government devalues the currency system.
(b) A currency drain occurs when the Federal government demands repayment of loans.
(c) A currency drain occurs when foreign investors withdrawn their funds from US banks.
(d) A currency drain happened when many depositors wrote checks, and the receivers of the checks cashed them at another bank, thereby requiring more money from the first bank than it had on hand.

4. Why was the "Federal Reserve System," so named?
(a) The "Federal Reserve System" was so named so that people would know that it was part of the Federal government.
(b) The "Federal Reserve System" was so named so that people would think it was part of the Federal government.
(c) The "Federal Reserve System" was so named so that people would have respect for it.
(d) The "Federal Reserve System" was so named because its offices were not state run.

5. What do some feel was the reason for establishing the Federal Reserve?
(a) The Federal Reserve System was concocted to put economic control into the hands of the people.
(b) The Federal Reserve System was concocted not to stabilize the economy but to put economic control into the hands of a few people who agreed not to compete with one another.
(c) The Federal Reserve System was concocted not to stabilize the economy and create an economy that was distributed equally among the population.
(d) The Federal Reserve System was concocted to stabilize the economy.

Short Answer Questions

1. How did poor regulation contribute to the Savings and Loan crisis of the 1980s?

2. What do many people feel was the real reason behind the establishment of the Federal Reserve?

3. Why was there skepticism about the author's analysis?

4. What redistribution of wealth occurred as a result of the establishment of the IMF and the World Bank?

5. Why were S&Ls popular with those seeking loans in the 1980s?

Short Essay Questions

1. In Chapter 4, what factdors may have contributed to the problems of the S&Ls in the 1980s?

2. According to Chapter 4, when did Americans become interested in socialism?

3. In Chapter 1, how is a "public run" defined?

4. In Chapter 3, what is the first bailout that is covered in this book?

5. According to Chapter 1, what did over-lending by banks result in?

6. According to Chapter 1, what were banks allowed to lend prior to the establishment of the Federal Reserve System?

7. In Chapter 2, why did banks make risky loans?

8. In Chapter 6, why did all nations, in the author's opinion, become socialistic in the New World Order?

9. According to Chapter 5, what resulted from the removal of the gold standard?

10. In Chapter 2, what was the main cause of the economic meltdown in 2008?

(see the answer keys)

This section contains 1,065 words (approx. 4 pages at 300 words per page) View a FREE sample