This quiz consists of 5 multiple choice and 5 short answer questions through Section I. What Creature Is This? Chapters 5-6 Nearer to the Heart's Desire; Building the New World Order.

Multiple Choice Questions

1. What has caused the economy's boom-bust cycle?
(a) The economy's boom-bust cycle is caused by the instability of the International Monetary Fund.
(b) The economy's boom-bust cycle is caused from trade deficits.
(c) The economy's boom-bust cycle is caused from people hoarding cash.
(d) The Federal Reserve's advertised purpose was to stabilize the economy, but depressions and recessions have resulted instead in a boom-bust cycle.

2. What impacted housing prices in the Midwest states?
(a) Housing prices declined because of poor construction standards in the area.
(b) House prices declined because homeowners due to the region's lack of good school systems.
(c) The Rust Belt area of the country was not considered a desirable place in which to live.
(d) The depression in the rust belt that included northern Midwestern states such as Michigan, Ohio and Pennsylvania reduced the number of potential home buyers which in turn depressed housing prices in those areas.

3. What did the Federal Reserve System help banks to do?
(a) The Federal Reserve helped banks to stay in operation.
(b) The Federal Reserve helped banks keep individuals, businesses and entire countries perpetually in debt and working mostly for the banks.
(c) The Federal Reserve helped banks keep a healthy cash flow.
(d) The Federal Reserve helped banks by making special laws for them.

4. 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 had no impact on the currency.
(b) 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.
(c) 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.
(d) 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.

5. How was some property converted for home ownership during the 1980s?
(a) Trailer parks were developed as suburban subdivisions.
(b) In some towns, student housing was converted to property that was sold to homeowners.
(c) Less expensive condominiums that often times had been rental apartments became another way. Rent-to-buy deals popped into the market.
(d) Some storefront small business buildings were converted to property that was sold for private homes.