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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What drove prices upward during the War of 1812?
(a) During the War of 1812, the central bank created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.
(b) During the War of 1812, the Federal Reserve created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.
(c) During the War of 1812, wildcat banks created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.
(d) During the War of 1812, the US Congress created bank notes that the government used to purchase war materials, tripling the money supply and driving prices upwards.

2. When did governmental typically find it necessary to print more paper money?
(a) Governments simply printed more money when needed, usually during legislative battles.
(b) Governments simply printed more money when needed, usually during times of war.
(c) Governments simply printed more money when needed, usually during economic downturns.
(d) Governments simply printed more money when needed, usually during political unrest.

3. What were the sales of English and French war bonds used for?
(a) Most of the money from the sales of the war bonds were spent on German war materials.
(b) Most of the money from the sales of the war bonds were spent on uniforms and supplies for the soldiers.
(c) Most of the money from the sales of the war bonds were spent on American war materials.
(d) Most of the money from the sales of the war bonds were spent on Russian artillery.

4. The Rothschild family held sway over most political leaders with the exception of what historic figure?
(a) The Rothschild family held no political influence over Adolph Hitler.
(b) The Rothschild family held no political influence over Napoleon.
(c) The Rothschild family held no political influence over Kaiser Wilhelm II.
(d) The Rothschild family held no political influence over Vladimir Lenin.

5. How did some organizations profit during boom-bust cycles by buying bonds?
(a) Buying up bonds during booms gained tremendous value during bust times.
(b) Buying up bonds during busts gained tremendous value during the Great Depression.
(c) Buying up bonds during busts gained tremendous value ten years later.
(d) Buying up bonds during busts gained tremendous value during boom times.

6. What document did the author provide to support the idea of a conspiracy to destroy the U.S. economy?
(a) The author used a document obtained by the CIA to support the idea of conspiracy to destroy the US economy.
(b) The author used a document named the Report from Iron Mountain to support the idea of conspiracy to destroy the US economy.
(c) The author used the minutes of secret Jekyll Island meeting to support the idea of conspiracy to destroy the US economy.
(d) The author used a confidential report found in Congressional archives to support the idea of conspiracy to destroy the US economy.

7. What event sparked the conflicts that led to World War I?
(a) World War I started in 1914 with the intercession of the US into European affairs.
(b) World War I started in 1914 with the assassination of the Kaiser Wilhelm II of Germany.
(c) World War I started in 1914 with a global economic collapse.
(d) World War I started in 1914 with the assassination of the Archduke of Austria-Hungary, Francis Ferdinand.

8. What role did J. P. Morgan have in Milner's secret society?
(a) J.P. Morgan financed the sides of political struggles that agreed with his liberal views.
(b) J.P. Morgan financed all sides of political struggles so that no matter who won, that side would be beholding to him and his organizations.
(c) J.P. Morgan financed all sides of political struggles to boost his chances for elective office.
(d) J.P. Morgan financed the sides of political struggles that agreed with his conservative views.

9. What decade marked the beginning of a tremendous surge in U.S. debt?
(a) The U.S. grew its debt tremendously since 1950.
(b) The U.S. grew its debt tremendously since 1960.
(c) The U.S. grew its debt tremendously since 1910.
(d) The U.S. grew its debt tremendously since 1930.

10. What is the basic structure of the U.S. monetary system?
(a) The monetary system in the U.S. was constructed for debt to be necessary in order for the money supply to remain in existence.
(b) The monetary system in the U.S. was constructed for debt to be necessary in order for Federal Reserve to remain in control of monetary concerns.
(c) The monetary system in the U.S. was constructed for debt to be necessary in order for the Congress to pass tax increases.
(d) The monetary system in the U.S. was constructed for debt to be necessary in order for the economy to flourish.

11. What would result if the money system returned to the gold standard?
(a) A return to the gold standard would set off a boom-bust cycle.
(b) A return to the gold standard would require a period of financial pain and many fortunes would evaporate.
(c) A return to the gold standard would result in instability and inflationary times.
(d) A return to the gold standard would result in instability and deflationary times.

12. What caused wildcat banks to develop?
(a) The Federal Reserve reintroduced inflation, and as the country expanded, wildcat banks developed in the wilderness.
(b) The central bank reintroduced inflation, and as the country expanded, wildcat banks developed in the wilderness.
(c) The central bank reintroduced deflation, and as the country expanded, wildcat banks developed in the wilderness.
(d) The central bank provided generous funds for loans, and as the country expanded, wildcat banks developed in the wilderness.

13. The Bank of North America was disbanded after what event?
(a) At the end of the Revolutionary War, The Bank of North America was disbanded.
(b) At the end of the Civil War, The Bank of North America was disbanded.
(c) At the end of World War I, The Bank of North America was disbanded.
(d) At the end of the Spanish American War, The Bank of North America was disbanded.

14. What was really behind the Russian Bolshevik Revolution?
(a) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations the Axis Powers.
(b) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations of a handful of financiers.
(c) The Russian Bolshevik Revolution was a revolution of and for the people.
(d) The Russian Bolshevik Revolution was not a revolution of and for the people, as history usually asserts, but the manipulations of foreign interests.

15. What realistic scenario was discussed in Chapter 26 involving the U.S. monetary system?
(a) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on gold, with silver as an auxiliary reserve.
(b) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on silver, with platinum as an auxiliary reserve.
(c) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on platinum, with gold as an auxiliary reserve.
(d) The realistic scenario described in Chapter 26 involved what could happen if the U.S. were to abandon fiat money and go back to money based on silver, with gold as an auxiliary reserve.

Short Answer Questions

1. What caused the economic downturn in 1818?

2. What country was formed after the second Russian revolution?

3. What caused the boom-bust cycle in the U.S. economy following the Civil War?

4. What portion of the U.S. debt did a large portion of the tax dollar pay for?

5. How did Nicholas Biddle, leader of The Second Bank, respond to President Andrew Jackson's opposition to him?

(see the answer keys)

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