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

Multiple Choice Questions

1. 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.

2. What does the author predict for the U.S. economy?
(a) The author predicted that the Federal Reserve would fail and that the US dollar would lose most of its value.
(b) The author predicted that banks would leading to crippling inflation and a new currency.
(c) The author predicted that the UN would control the world's currency.
(d) The author predicted that US Congressional oversight of banks would be removed and that the people would be at the mercy of all-powerful banks.

3. 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 Russian artillery.
(b) Most of the money from the sales of the war bonds were spent on uniforms and supplies for the soldiers.
(c) Most of the money from the sales of the war bonds were spent on German war materials.
(d) Most of the money from the sales of the war bonds were spent on American war materials.

4. When was the Federal Reserve Act passed?
(a) The Federal Reserve Act passed by large majorities in Congress just before the stock market crash of 1929.
(b) The Federal Reserve Act passed by large majorities in Congress just before World War II commenced.
(c) The Federal Reserve Act passed by large majorities in Congress just after World War I ended.
(d) The Federal Reserve Act passed by large majorities in Congress just before Christmas, 1913.

5. What solid case did governments make for fiat monetary systems?
(a) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would increase the budget deficit.
(b) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would increase the money supply.
(c) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would increase taxes.
(d) As long as governments wanted ever more money for projects such as wars, building infrastructure and social programs, the governments would raise the debt ceiling.

Short Answer Questions

1. How many revolutions did Russia actually undergo?

2. What decade marked the beginning of a tremendous surge in U.S. debt?

3. What did the USSR implement instead of true Communism?

4. What caused the boom-bust cycle in the U.S. economy following the Civil War?

5. What caused England to nearly go broke?

Short Essay Questions

1. According to Chapter 22, when was the Federal Reserve Act passed?

2. According to Chapter 18, what impact did stable banking practices have?

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

4. According to Chapter 9, what culture first developed the the modern equivalent of the banking industry?

5. According to Chapter 20, what was the economic outlook in the U.S. following the Civil War?

6. In Chapter 23, what was the real cause of the Great Depression of the 1930s?

7. According to Chapter 15, why was the use of fiat money disallowed in the United States?

8. According to Chapter 24, what decade marked the beginning of a tremendous surge in U.S. debt?

9. According to Chapter 17, what dispute did President Andrew Jackson have with the leader of The Second Bank?

10. According to Chapter 13, what was really behind the Russian Bolshevik Revolution?

(see the answer keys)

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