This quiz consists of 5 multiple choice and 5 short answer questions through Section III. The New Alchemy, Chapters 13-15 Masquerade in Moscow; The Best Enemy Money Can Buy; The Lost Treasure Map.

Multiple Choice Questions

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

2. What is the status of a loan that is "underwater?"
(a) When a home loan is underwater, the homeowner is forced into bankruptcy.
(b) When a home loan is underwater, the homeowner owns more on the home than it is worth on the market.
(c) When a home loan is underwater, the homeowner must take out a second mortgage.
(d) When a home loan is underwater, the homeowner is forced into foreclosure by the lender.

3. What organization ensures the nationalization of banks?
(a) As long as the FDIC existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(b) As long as the Federal Reserve System existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(c) As long as the International Monetary Fund existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(d) As long as the Congressional Banking Committee existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.

4. Why was gold considered the ideal metal behind a monetary system?
(a) Gold was considered the perfect metal because it was the most common of the precious metals.
(b) Gold was considered the perfect metal because of its value and availability.
(c) Gold was considered the perfect metal because it was the most sought after of the precious metals.
(d) Gold was considered the perfect metal because of its intrinsic value and scarcity throughout history.

5. What importance does political ideology have on the nationalization of banks?
(a) Liberal ideologues have the great influence on bank legislation.
(b) The nationalization of banks is such a strong part of the overall economy that political ideology did not matter.
(c) The Congressional chairman of the Banking Committee influences support for nationalization.
(d) Political lobbyists for banks have great influence on their nationalization.