The Collapse of the American Dream (Interactive Video Quiz)

What happens when a homeowner fails to make their loan payments to the bank?

• The bank will offer them a new, smaller loan.

• The bank will take possession of their home through foreclosure.

• The homeowner can keep the house if they promise to pay later.

• The bank will send a friendly reminder letter.

How do banks primarily earn money?

• By selling goods and services to customers.

• By receiving donations from the government.

• By making loans and charging interest on the debt.

• By investing in the stock market.

Where does the money that banks lend to people originally come from?

• It is printed by the U.S. Treasury.

• It is created by the Federal Reserve.

• It comes from other customers' savings accounts.

• It is borrowed from foreign countries.

What is the Federal Reserve, as described in the video?

• A government agency that controls all banks.

• A private bank owned by private stockholders.

• A non-profit organization that helps people get loans.

• A public institution that manages the national debt.

How does the Federal Reserve primarily provide money to commercial banks?

• By directly giving them newly printed cash.

• By lending them money that must be repaid with interest.

• By allowing them to print their own money.

• By collecting taxes from citizens and distributing it to banks.

What was a significant challenge faced by people using a bartering system for trade?

• It was difficult to transport large quantities of goods.

• People often did not want the specific goods offered by others.

• There was no way to store wealth for future use.

• Only certain types of goods could be exchanged.

How did the concept of paper money, like "IOUs," first emerge?

• Governments created paper money to simplify trade.

• Merchants started writing down debts on paper.

• Goldsmiths gave customers paper receipts for gold stored in their vaults.

• People began trading valuable paper instead of physical goods.

What economic problem occurs when too much paper money is created without a corresponding increase in valuable goods or services?

• Deflation, where prices decrease.

• Economic growth, leading to more jobs.

• Inflation, where prices increase.

• Stagnation, where the economy stops growing.

How did the Red Shield gain control of England's wealth after the Battle of Waterloo?

• By winning the Battle of Waterloo.

• By secretly buying up English stocks after spreading false rumors of defeat.

• By directly taking over the government through military force.

• By lending money to England at very high interest rates.

What was Thomas Jefferson's main concern about private banks controlling a nation's money supply?

• It would lead to excessive government spending.

• It would cause inflation and deflation, eventually making people homeless.

• It would make the country too dependent on foreign powers.

• It would prevent the government from collecting taxes effectively.