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

Multiple Choice Questions

1. After the 1950s, what was the standard of measure used to estimate the US debt?
(a) The debt was measured by the gold standard.
(b) The debt was measured in zillions of dollars.
(c) The debt was measured in trillions of dollars.
(d) The debt was measured in millions of dollars.

2. When did governmental typically find it necessary to print more paper money?
(a) Governments simply printed more money when needed, usually during times of war.
(b) Governments simply printed more money when needed, usually during legislative battles.
(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. Why was the use of fiat money disallowed in the United States?
(a) The reason the framers of the Constitution elected to eliminate fiat money was because rampant inflation had recently occurred, and the pain of that was still fresh in the framers' minds.
(b) The reason the framers of the Constitution elected to eliminate fiat money was because a severe economic downturn had recently occurred, and the pain of that was still fresh in the framers' minds.
(c) The reason the framers of the Constitution elected to eliminate fiat money was because rampant deflation had recently occurred, and the pain of that was still fresh in the framers' minds.
(d) The reason the framers of the Constitution elected to eliminate fiat money was because a bank run had recently occurred, and the pain of that was still fresh in the framers' minds.

4. What caused England to nearly go broke?
(a) The British pound suffered in the European market, which led to the country nearly going broke.
(b) The British pound suffered in the Asian market, which led to the country nearly going broke.
(c) The British pound suffered in the US market, which led to the country nearly going broke.
(d) The British pound suffered in the international markets, which led to the country nearly going broke.

5. How did Nicholas Biddle, leader of The Second Bank, respond to President Andrew Jackson's opposition to him?
(a) Biddle fought back by instigating a depression through Congressional legislation.
(b) Biddle fought back by instigating a depression by tampering with national cash flow.
(c) Biddle fought back by instigating a depression through the state banks.
(d) Biddle fought back by instigating a depression through his economic control.

6. What occurred after the economic downturn in 1818?
(a) After the economic downturn in 1818, revenues were bolstered by increased taxation.
(b) After the economic downturn in 1818, loans were difficult to obtain.
(c) After the economic downturn in 1818, a period of deflation followed.
(d) After the economic downturn in 1818, layoffs and bankruptcies followed.

7. What were the additional goals after the Federal Reserve was established in 1910?
(a) The goals were to craft legislation to bring about: the elimination of bank oversight; debt elimination; and, shifting losses from the taxpayers to banks.
(b) The goals were to craft legislation to bring about: the elimination of foreign interests; recapturing the bond market; and, shifting losses from the the US to foreign investors.
(c) The goals were to craft legislation to bring about: the elimination of savings and loans; recapturing the foreign loan market; and, shifting losses from the banks to the state governments.
(d) The goals were to craft legislation to bring about: the elimination of small rival banks; recapturing the industrial loan market; and, shifting losses from the banks to the taxpayers.

8. What dispute did President Andrew Jackson have with the leader of The Second Bank?
(a) President Andrew Jackson battled against the leader of The Second Bank, Nicholas Biddle, because Biddle had too much sway over the government and the economy.
(b) President Andrew Jackson battled against the leader of The Second Bank, Nicholas Biddle, because Biddle did not favor the gold standard.
(c) President Andrew Jackson battled against the leader of The Second Bank, Nicholas Biddle, because Biddle had too much influence with Congress.
(d) President Andrew Jackson battled against the leader of The Second Bank, Nicholas Biddle, because Biddle had too power over state banks.

9. What is the Rothschild Formula?
(a) The Rothschild Formula means that money could be made from warfare when the US is on the winning side.
(b) The Rothschild Formula means that money could be made from warfare and from both sides of the conflicts.
(c) The Rothschild Formula means that money could be made from warfare when the winning side stands for social reform.
(d) The Rothschild Formula means that money could be made from warfare and from the winning side of the conflict.

10. What resulted from the Mandrake Mechanism?
(a) The results of this system included social planning and hidden taxation by means of deflation.
(b) The results of this system included social planning and hidden taxation by means of inflation.
(c) The results of this system included social planning and hidden taxation and currency devaluation.
(d) The results of this system included social planning and tax relief.

11. Why was the language of the Federal Reserve Act kept intentionally vague?
(a) The language in the bill was made intentionally vague so that the general public would be kept in the dark about its powers.
(b) The language in the bill was made intentionally vague to protect national security.
(c) The language in the bill was made intentionally vague so that the US could remain the world's strongest economy.
(d) The language in the bill was made intentionally vague and open to future interpretations.

12. What did the USSR implement instead of true Communism?
(a) The USSR never implemented true Communism but became a money-making machine for those trying to establish a quasi-capitalist system of government.
(b) The USSR never implemented true Communism but became a money-making machine for the Axis powers.
(c) The USSR never implemented true Communism but became a money-making machine for the secret money society that was controlled by the United Nations.
(d) The USSR never implemented true Communism but became a money-making machine for the secret money society that had turned into several branches called Round Tables.

13. How did large banks react to the Federal Reserve Act?
(a) The leaders of the large banks put up a good show of opposition, but deep down they did not want this bill to pass even with the compromises.
(b) The leaders of the large banks put up a good show of opposition, but deep down they wanted this bill to pass even with the compromises.
(c) The leaders of the large banks openly opposed the bill and employed congressional lobbyists to fight it.
(d) The leaders of the large banks openly supported the bill and employed congressional lobbyists to fight for it.

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

15. What was the role of the British Ship Lusitania in World War I?
(a) The Lusitania was being used to transport munitions from the US to England under the guise of being a cargo ship.
(b) The Lusitania was being used to transport tanks from the US to England under the guise of a passenger liner that also hauled goods.
(c) The Lusitania was being used to transport soldiers from the US to England under the guise of a passenger liner that also hauled goods.
(d) The Lusitania was being used to transport munitions from the US to England under the guise of a passenger liner that also hauled goods.

Short Answer Questions

1. What disagreement did Alexander Hamilton and Thomas Jefferson have about a central bank?

2. What caused the economic downturn in 1818?

3. What restrictions were placed on the Bank of Amsterdam which was established in 1609?

4. What is the basic structure of the U.S. monetary system?

5. How did England and France, at least in part, finance their wars?

(see the answer keys)

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