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. What happened to many homeowners when the housing market bubble burst?
(a) Suddenly people owed more money on their properties than they did when they took out the loan.
(b) Many homeowners were forced into foreclosure.
(c) Suddenly people owed more money on their properties than they were worth.
(d) Many homeowners had to take out second mortgages on their properties.

2. What impact does deflation have on individuals who are repaying loans?
(a) Deflation causes people to repay more value on loans taken out during a bear market.
(b) Deflation causes people to repay more value on loans taken out during inflationary times.
(c) Deflation causes people to repay more value on loans during an economic downturn.
(d) Deflation causes people to repay more value on loans taken out during a bull market.

3. In what year was First Pennsylvania Bank bailed out?
(a) First Pennsylvania Bank was bailed out in 1975.
(b) First Pennsylvania Bank was bailed out in 1973.
(c) First Pennsylvania Bank was bailed out in 1972.
(d) First Pennsylvania Bank was bailed out in 1980.

4. What events cause deflation?
(a) Deflation occurs when prices suddenly increase.
(b) Deflation occurs when the government takes steps against inflationary signals.
(c) Deflation occurs when the stock market suddenly tumble.
(d) Deflation occurs when prices suddenly tumble.

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