This quiz consists of 5 multiple choice and 5 short answer questions through Section IV. A Tale of Three Banks, Chapters 16-19 The Creature Comes to America; A Den of Vipers; Loaves and Fishes, and Civil War; Greenbacks and Other Crimes.

Multiple Choice Questions

1. What was the location of the meeting where the concept of the Federal Reserve was developed?
(a) The concept of the Federal Reserve was developed on Long Island.
(b) The concept of the Federal Reserve was developed on Jekyll Island.
(c) The concept of the Federal Reserve was developed in the Hawaiin Islands.
(d) The concept of the Federal Reserve was developed on Alcatraz Island.

2. Why was platinum not used to back the monetary system?
(a) There were myths about platinum and many questioned its real value making it unacceptable to be used to be the standard for a monetary system.
(b) Not enough platinum occurred in the United States to be used as the standard for a monetary system.
(c) Platinum was too scarce to be used to be the standard for a monetary system.
(d) Platinum did not have the popular support of the public to become the standard for a monetary system.

3. Why did banks make risky loans?
(a) The US Congress passed legislation that required banks to make ten percent of their loans to risky borrowers.
(b) The banks had incentive in terms of high profits for granting mortgages to home buyers who would not be able to pay the loans off, but who might be able to make interest payments.
(c) Banks are required by the Federal Reserve to make a certain percentage of risky loans.
(d) Banks did not thoroughly check out the risk factor of some borrowers.

4. What other organizations were spawned from Milner's secret society?
(a) Other parts of the secret society showed up as the Council on Foreign Relations and even the Red Cross.
(b) Other parts of the secret society showed up as the International Money Fund.
(c) Other parts of the secret society showed up as the Noble Prize Commission.
(d) Other parts of the secret society showed up as the World Bank and Red Cross.

5. What was a fundamental flaw in a paper money system not backed by gold?
(a) The temptation was too strong to simply print more money which led to economic instability.
(b) The temptation was too strong to simply print more money which led to severe deflation.
(c) The temptation was too strong to simply print more money which led to severe inflation.
(d) The temptation was too strong to simply print more money which led to economic stability.