This quiz consists of 5 multiple choice and 5 short answer questions through Section I. What Creature Is This? Chapter 2 The Name of the Game Is Bailout.

Multiple Choice Questions

1. How did many people feel about those who went too far into debt?
(a) Many argued that people who went too far into debt had done this on their own--nobody had forced people into the mortgages or credit cards.
(b) Many argued that those in deep debt should be forgiven much of their dept because of the reclining economy.
(c) Many felt that people who were in debt had been encouraged to do so by political figures.
(d) Many felt that the nation had been taught to rely too much on credit.

2. What was the main cause of the economic meltdown in 2008?
(a) An unstable world economy was the main cause for the 2008 economic meltdown.
(b) The lack of Congressional legislation was the main cause for the 2008 economic meltdown.
(c) Toxic assets, also known as mortgages and loans were the main cause for the 2008 economic meltdown.
(d) The US deficit was the main cause for the 2008 economic meltdown.

3. If the debtors stopped paying banks altogether, what action would the Federal Reserve System take?
(a) If the debtors stopped paying altogether, the Federal Reserve System gave the banks more money.
(b) If the debtors stopped paying altogether, the Federal Reserve System fined them.
(c) If the debtors stopped paying altogether, the Federal Reserve System refused to back the bad debt.
(d) If the debtors stopped paying altogether, the Federal Reserve System filed suit in Federal Court.

4. Prior to the establishment of the Federal Reserves, what caused massive bank failures?
(a) There were public runs on the banks and currency drains from other banks demanding payments.
(b) US bonds were devalued by the Federal authorities.
(c) Foreign debtors demanded the full repayment of loands.
(d) The Great Depression proved to be an unbearable strain on the banking system.

5. 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 in the Hawaiin Islands.
(b) The concept of the Federal Reserve was developed on Long Island.
(c) The concept of the Federal Reserve was developed on Jekyll Island.
(d) The concept of the Federal Reserve was developed on Alcatraz Island.