1. Who was the mastermind behind the Federal Reserve?
(a) Paul Moritz Warburg was the mastermind behind the Federal Reserve.
(b) Thomas Jefferson was the mastermind behind the Federal Reserve.
(c) Henry Kissinger was the mastermind behind the Federal Reserve.
(d) Alexander Hamilton was the mastermind behind the Federal Reserve.

2. What caused the economy to get into such a state that the government was compelled to bail out banks?
(a) The argument could be made that lax lending practices and overly speculative investments had forced the government to use tax dollars in the bailouts.
(b) The US Congress failed to pass legislation that would have boosted the economy.
(c) The American people were taking out too many home loans.
(d) The International Monetary Fund had become dangerously unstable.

3. What is the definition of a public run on a bank?
(a) A public run occurs when a bank runs out of cash.
(b) A public run occurs when the Federal government takes ownership of a bank.
(c) A public run was when many depositors demanded their cash from a bank and wiped out the bank's reserves.
(d) A public run is when the government puts a bank up for sale.

4. What economic group is hit the hardest by an inflation?
(a) Inflation has been a problem for the rich and poor alike, although it hit the chronically poor harder than anyone.
(b) Inflation damages only the very poor in a society.
(c) Only the middle class is hurt by inflation.
(d) Only the very wealthiest people are hurt by inflation.

5. What major banks failed in 1972?
(a) In 1972, Bank of America and Citibank failed.
(b) Unity Bank fell in 1972, as did the Commonwealth Bank of Detroit.
(c) First Bank of California and Wells Fargo Bank failed in 1972.
(d) In 1972, First Bank of Michigan and New York Bank both failed.