This quiz consists of 5 multiple choice and 5 short answer questions through Section II. A Crash Course on Money, Chapters 7-8 The Barbaric Metal; Fool's Gold.

Multiple Choice Questions

1. When were the International Monetary Fund and World Bank established?
(a) In 1944, the Bretton Woods Conference took place, out of which came the International Monetary Fund or IMF and World Bank
(b) The World Bank and International Monetary Fund were established during the Cold War.
(c) The World Bank and International Monetary Fund were established in 1910 at Jekyll Island.
(d) The World Bank and International Monetary Fund were established in 1929 when the Stock Market crashed.

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

3. What do some feel was the reason for establishing the Federal Reserve?
(a) The Federal Reserve System was concocted not to stabilize the economy but to put economic control into the hands of a few people who agreed not to compete with one another.
(b) The Federal Reserve System was concocted not to stabilize the economy and create an economy that was distributed equally among the population.
(c) The Federal Reserve System was concocted to stabilize the economy.
(d) The Federal Reserve System was concocted to put economic control into the hands of the people.

4. How did the government provide economic support to Lockheed Corporation in 1970?
(a) In 1970, Lockheed Corporation was made a unit of the Defense Department.
(b) In 1970, the US government agreed to pay Lockheed Corporation twenty-percent over their selling prices.
(c) In 1970, Lockheed Corporation had troubles and became a prime government contractor, another way of nationalizing private industry.
(d) In 1970, Lockheed Corporation was forgiven of all defense-related debt.

5. The banking system before the Federal Reserve System allowed banks to lend out what percentage of money against one percent in deposits.
(a) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to sixty percent loaned out with only one percent in deposits.
(b) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to ninety-nine percent loaned out with only one percent in deposits.
(c) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to fithy percent loaned out with only one percent in deposits.
(d) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to twenty percent loaned out with only one percent in deposits.