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. This conspiracy theory about the Federal Reserve pointed the finger at the meeting on Jekyll Island that occurred in 1910.
(a) The conspiracy theory surrounding the Federal Reserve was thought to have originated during FDR's administration.
(b) The conspiracy theory surrounding the Federal Reserve was thought to be hatched at the 1910 Jekyll Island meeting.
(c) The conspiracy theory surrounding the Federal Reserve was thought to have originated during the Great Depression.
(d) The conspiracy theory surrounding the Federal Reserve was thought to have originated at the 1904 World's Fair.

2. What impact did the Greek currency system have on the economy?
(a) The Greek currency system had no effect on the economy.
(b) The Greek currency system led to other cultures creating similar systems.
(c) The Greek currency system led to an unstable economy.
(d) The Greek currency system led to a stable economy.

3. What happened when a debtor defaulted on a loan?
(a) When a debtor defaulted on a loan, he would first ask for more time to pay.
(b) When a debtor defaulted on a loan, he would ask loan payments be waived.
(c) When a debtor defaulted on a loan, he would ask the government for a guaranteed loan.
(d) When a debtor defaulted on a loan, he would stop making payments.

4. What risky loan activities have banks participated in?
(a) Banks loaned depositors' money to foreign governments who refused to repay the loans.
(b) Banks loaned depositors' money out to poor people during the Great Depression.
(c) Banks loaned depositors' money out to to the US government in times of economic downturns.
(d) Banks loaned depositors' money out to risky debtors who would likely not be able to pay the loans off.

5. Since its inception in 1910, the Federal Reserve had made what decisions about bank bailouts?
(a) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts only if they could prove they had complied with all regulations.
(b) Since its inception in 1910, the Federal Reserve had decided that large banks would be the only banks to get bailouts.
(c) Since its inception in 1910, the Federal Reserve had decided that medium-sized banks would get the majority of bailouts.
(d) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts, medium-sized banks would get some bailouts, and small banks would be left to fail or be acquired by larger banks.

Short Answer Questions

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

2. What is the fundamental basis of capitalism?

3. What organization ensures the nationalization of banks?

4. What was one of the strongest arguments in favor of bank regulation versus nationalization?

5. Why did banks ask for interest-only payments?

Short Essay Questions

1. In Chapter 4, how was the employment picture beginning to change?

2. In Chapter 2, how did the banks make their money?

3. According to Chapter 4, what presidential action may have contributed to the economic woes?

4. According to Chapter 7, what culture was the first to create a currency system based on gold and silver?

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

6. According to Chapter 1, what was the main purpose of the Federal Reserve System?

7. According to Chapter 4, what caused the Savings & Loan crisis of the 1980s?

8. According to Chapter 6, how did the new world order develop?

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

10. In Chapter 7, what impact did the Greek currency system have on the economy?

(see the answer keys)

This section contains 1,088 words (approx. 4 pages at 300 words per page) View a FREE sample