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The Creature From Jekyll Island

Total questions: 41

Worksheet time: 23mins

Name
Class
Date
1.

According to the text, why is the author making their own charge into the "dragon's teeth"?

a)

Because they have discovered new evidence about the monetary system.

b)

Because they believe public attitude towards the economic situation is changing.

c)

Because they want to write a book half its present size.

d)

Because they were surprised to find out that four books had been written instead of one.

2.

How many times was the concept behind the Federal Reserve tried before in America?

a)

One time

b)

Two times

c)

Three times

d)

Four times

3.

According to the text, which of the following is NOT a reason for the abolition of the Federal Reserve System?

a)

It is incapable of accomplishing its stated objectives.

b)

It is a cartel operating against the public interest.

c)

It generates our most unfair tax.

d)

It stabilizes the economy.

4.

What is the purpose of the book as stated by the author?

a)

To provide a detailed historical account of the Federal Reserve System.

b)

To argue for the abolition of the Federal Reserve System with substantiated statements.

c)

To describe the technical aspects of the Federal Reserve System.

d)

To entertain the reader with fictional stories about the Federal Reserve System.

5.

How does the author describe the content of the book in terms of its truthfulness?

a)

The book contains a mix of truth and fiction for educational purposes.

b)

The book is a fictional story that parallels real events.

c)

Every detail of what follows in the book is true.

d)

The book is a fictional narrative meant to entertain.

6.

What are banks for according to the text?

a)

To serve the customers

b)

To make money

c)

To store money safely

d)

To lend money to the government

7.

Why doesn't bank advertising mention that banks are for making money?

a)

Because it is obvious

b)

Because it is not true

c)

Because it would not be in good taste

d)

Because the customers wouldn't like it

8.

What is referred to as "Liabilities" in the text?

a)

The money banks have in their vaults

b)

The money banks owe to their customers

c)

The money banks lend to other banks

d)

The money banks use to pay their employees

9.

According to the text, what do customers do with their money at a bank?

a)

They keep it in a safe

b)

They lend it to the bank

c)

They donate it to the bank

d)

They invest it in the bank's assets

10.

What happens when a customer puts money into their account?

a)

The bank counts it as Assets

b)

The bank considers it a Liability

c)

The bank invests it immediately

d)

The bank stores it in a safe

11.

Can Assets and Liabilities be considered the same thing in banking according to the dialogue?

a)

Yes, because they are both money

b)

No, because they represent different things

c)

Yes, because it's the same $100

d)

No, because Assets are more important than Liabilities

12.

What does it mean when it is said that banks haven't really any money at all?

a)

It means that banks are always in debt.

b)

It means that banks have unlimited funds.

c)

It means that banks don't have any physical money.

d)

It means that banks' actual money is the money they have made.

13.

Where do banks get their Reserves from?

a)

From the interest they charge on loans.

b)

From the government's funding.

c)

From customers' deposits.

d)

From a fixed amount of $249,000,000 or thereabouts.

14.

How much interest might a bank charge on a $100 loan?

a)

It depends on the Bank Rate, usually around 2.5%.

b)

It depends on the Bank Rate, usually around 5%.

c)

A fixed rate of 10%.

d)

No interest is charged on loans.

15.

What is the theory of banking practice that justifies not paying interest on money lent to the bank?

a)

The theory of perpetual debt.

b)

The theory of banking practice that banks never actually have to meet their commitments.

c)

The theory of banking practice that banks always have enough money to cover withdrawals.

d)

The theory of banking practice that they wouldn't let you draw it out again.

16.

What is surprising about the Federal Reserve System according to the text?

a)

It is part of the federal government.

b)

It has a large number of reserves.

c)

It is not federal and has no reserves.

d)

It is a well-structured banking system.

17.

How is the subject matter of the Federal Reserve System presented in the text?

a)

As a curriculum to be mastered.

b)

As a chronological structure.

c)

As a mystery to be solved.

d)

As a straightforward factual account.

18.

Where does the text suggest the key to understanding the Federal Reserve System can be found?

a)

At the beginning of the story.

b)

In the middle of the story.

c)

In a chronological structure.

d)

In the Federal Reserve Banks.

19.

What was the weather like at the New Jersey railway station on the night described in the text?

a)

Warm and clear

b)

Bitterly cold with first snow

c)

Rainy and foggy

d)

Hot and humid

20.

What year is mentioned in the text regarding the rail equipment?

a)

1900

b)

1910

c)

1920

d)

1930

21.

According to the text, what was the state of the dining car environment?

a)

Luxurious and comfortable

b)

Drab with metal or scarred wood surfaces

c)

Modern and brightly colored

d)

Wooden with ornate carvings

22.

What distinguished the car at the end of the platform from the others?

a)

It was smaller and less noticeable

b)

It had no windows or doors

c)

It was gleaming with polished brass and black paint

d)

It was old and rusty

23.

What was the distinct feature of the private railway car that belonged to Nelson Aldrich?

a)

It had a unique number on each end.

b)

It bore a small plaque with the word "ALDRICH."

c)

It was the only car in the station.

d)

It was painted in a different color than the others.

24.

By what year was Nelson Aldrich one of the most powerful men in Washington, D.C.?

a)

By 1900

b)

By 1910

c)

By 1920

d)

By 1930

25.

What was Nelson Aldrich carrying when he arrived at the station?

a)

A briefcase

b)

A suitcase

c)

A silver-tipped walking stick

d)

A shotgun case

26.

What unusual event occurred as the train carrying Senator Aldrich and other passengers began its journey?

a)

The train accelerated rapidly.

b)

The train reversed direction.

c)

The train stopped for additional passengers.

d)

The train sounded a unique whistle.

27.

What precaution was taken by the passengers who boarded the train with Senator Aldrich to avoid revealing their identities?

a)

They wore disguises.

b)

They used code names.

c)

They used first names only.

d)

They boarded at different stations.

28.

Who was the Republican "whip" in the Senate, Chairman of the National Monetary Commission, and a business associate of J.P. Morgan, father-in-law to John D. Rockefeller, Jr.?

a)

Frank A. Vanderlip

b)

Henry P. Davison

c)

Nelson W. Aldrich

d)

Benjamin Strong

29.

Which individual was the Assistant Secretary of the United States Treasury?

a)

Paul M. Warburg

b)

Abraham Piatt Andrew

c)

Charles D. Norton

d)

Benjamin Strong

30.

Who was the president of the National City Bank of New York?

a)

Henry P. Davison

b)

Paul M. Warburg

c)

Frank A. Vanderlip

d)

Charles D. Norton

31.

Identify the senior partner of the J.P. Morgan Company.

a)

Benjamin Strong

b)

Charles D. Norton

c)

Henry P. Davison

d)

Nelson W. Aldrich

32.

Who was the head of J.P. Morgan's Bankers Trust Company?

a)

Paul M. Warburg

b)

Benjamin Strong

c)

Abraham Piatt Andrew

d)

Frank A. Vanderlip

33.

Paul M. Warburg was a partner in which investment banking firm?

4 lines
34.

By 1910, which two groups were the main focal points of financial control in the United States?

a)

The Morgan group and the Rothschild group

b)

The Rockefeller group and the Warburg group

c)

The Morgan group and the Rockefeller group

d)

The European financiers and the Rockefeller group

35.

What did the final report of the committee investigating the concentration of financial power in the United States reveal?

a)

It showed a fair distribution of wealth among various groups.

b)

It confirmed a well-defined identity and community of interest among a few men.

c)

It disproved any concentration of control over money and credit.

d)

It highlighted the efficiency of the Federal Reserve Act.

36.

According to the text, what is one-sixth of the world's wealth represented by?

a)

Members of the Jekyll Island Club

b)

The European financiers

c)

The Rockefeller group

d)

The Warburg group

37.

Who was considered a spokesman for the old interests and was part of the investigation into the concentration of financial power in the United States?

a)

George Baker

b)

Arsene Pujo

c)

A member of the Morgan group

d)

A member of the Rockefeller group

38.

What was the purpose of the elite group of financiers' journey to Jekyll Island?

a)

To establish a new bank

b)

To take a vacation

c)

To discuss the country's reserves of money and credit

d)

To attend a public event

39.

Which of the following towns was NOT mentioned as a destination on the financiers' journey?

a)

Atlanta

b)

Savannah

c)

Brunswick

d)

Charleston

40.

What was the population size of Brunswick, Georgia, at the time of the financiers' journey?

a)

A population of only a few hundred people

b)

A population of over ten thousand people

c)

A population of a few thousand people

d)

The document does not specify

41.

What was Brunswick, Georgia, primarily known for?

a)

It was a fishing village with a port for cotton and lumber

b)

It was a large industrial city

c)

It was a popular tourist destination

d)

It was the capital of Georgia