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Name: _________________________ | Period: ___________________ |
This quiz consists of 5 multiple choice and 5 short answer questions through Section II. A Crash Course on Money, Chapters 9-10 The Secret Science; The Mandrake Mechanism.
Multiple Choice Questions
1. Why did banks offer debtors more credit?
(a) Banks offered more credit to debtors to help them purchase homes.
(b) Banks offered more credit to debtors to increase interest payments to the them.
(c) Banks offered more credit to debtors to so they could increase their purchasing power.
(d) Banks offered more credit to debtors to help improve their credit rating.
2. Why was housing becoming difficult to obtain in the 1980s?
(a) The cost of housing was sky-rocketing.
(b) Wages were not keeping up with inflation, which made housing harder to obtain.
(c) The construction industry was experiencing labor conflicts.
(d) Congressional actions began to place restrictive regulations on house buying.
3. Which European bank become the model for the Federal Reserve System?
(a) First Banc of France became the model for the Federal Reserve System
(b) The Bank of Madrid became the model for the Federal Reserve System.
(c) Bank One of Rome became the model for the Federal Reserve System.
(d) The Bank of England became the model for the Federal Reserve System.
4. What happened to many homeowners when the housing market bubble burst?
(a) Suddenly people owed more money on their properties than they were worth.
(b) Many homeowners had to take out second mortgages on their properties.
(c) Suddenly people owed more money on their properties than they did when they took out the loan.
(d) Many homeowners were forced into foreclosure.
5. What was the impact of the creation of new money on the currency?
(a) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was a devaluing of the currency.
(b) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality it was strengthening the currency in the world market.
(c) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was increasing the value of the currency.
(d) People considered the creation of new money inflationary as the prices of goods and services rose but had no impact on the currency.
Short Answer Questions
1. Early banks were supported by what monetary system?
2. What is the true function of the FDIC?
3. What resulted when paper money was not backed with gold or silver?
4. What was the main cause of the economic meltdown in 2008?
5. What is the main transport of both Amtrak and Conrail?
This section contains 662 words (approx. 3 pages at 300 words per page) |
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