Final

Question 1

President Woodrow Wilson wanted to remain neutral during World War I.

Answer 1

True

Question 2

What country deciphered the Zimmermann Telegram before they shared it contents with the United States?

A) Great Britain
B) Germany
C) Mexico
D) Japan

Answer 2

A) Great Britain

Question 3

1. True or False: White was one of the most valuable Soviet spies.

Answer 3

True

Question 4

What was one institution NOT created at Bretton Woods?

a) IMF
b) GATT
c) ITO
d) The World Bank

Answer 4

c) ITO

Question 5

Iran is a signatory of the Non-Proliferation Treaty.

Answer 5

True

Question 6

Which of the following countries has set a “red line” position on Iranian enrichment?
a) United States b) Saudi Arabia c) Russia d) Israel e) Jordan

Answer 6

Israel

Question 7

The only social group in Russia interested in the Revolution in 1917 was the intelligentsia (not the peasants, not the workers or the elite).

Answer 7

True

Question 8

What are the reasons behind the Russian Revolution on October 25, 1917?

a) Russian mismanagement the World War I (war losses and costs)
b) Unrelieved social tension and social reforms from the revolt of 1905
c) Growth of radical political movements and terrorism
d) All of the above

Answer 8

d) All of the above

Question 9

Anti-Semitism was a new phenomenon that only appeared after WWI.

Answer 9

False

Question 10

Who won the legal battle between Irving v. Penguin and Lipstadt?

Answer 10

Lipstadt

Question 11

Which of the following is the reason the Weimar Republic failed:

a. Highly polarized political parties
b. Never had the full support of the Armed/Civil services
c. Problems with the Weimar Constitution
d. Failure to adequately deal with important situations
e. All of the Above

Answer 11

e) All of the Above

Question 12

Which country does NOT have navel warships poised outside of Syria?
A) US B) Russia
C) China D) UK

Answer 12

D) UK

Question 13

Israel has ratified the CWC agreement

Answer 13

False

Question 14

How many chemical attacks does the UN speculate Syria committed?
A) 3 B) 1
C) 0 D) 7

Answer 14

D) 7

Question 15

Khrushchev enjoyed unwavering popularity among his Communist peers, both within the Soviet Union and internationally.

Answer 15

False

Question 16

What was the major foreign policy disaster that occurred within the first year of President Kennedy’s administration, diminishing his international popularity and undermining his ability to negotiate in Vienna?

a. ) The Cuban Missile Crisis
b. ) The shooting down of an American U-2 over Soviet airspace
c. ) The Bay of Pigs Invasion
d. ) U.S. involvement in Vietnam

Answer 16

c) Bay of Pigs

Question 17

Which of the following is NOT a model of decision making proposed by Allison and Zelikow:
A) Organizational Behavior Model
B) Rational Actor Model
C) International Affairs Model
D) Governmental Policies Model

Answer 17

C) International Affairs Model

Question 18

Allison and Zelikow believe that the rational choice model is the absolute best method of decision making.

Answer 18

False

Question 19

The Strategic Defense Initiative, “nicknamed Star Wars” was a US defense program viewed by the Soviets as an attempt to achieve strategic superiority.

Answer 19

True

Question 20

Which of the following was NOT part of Reagan’s four part agenda with the Soviets:
A, Protection of human rights
B. Opening the USSR
C. Reducing weaponry
D. Increasing defense systems
E. Disengaging from armed conflicts in third countries

Answer 20

D) Increasing Missile Defense

Question 21

United States largely contributed to the “Japanese post-war economic miracle”, which also get benefit from the cold war.

Answer 21

True

Question 22

In its financial crisis, which economic policy did the Japanese government implement?
A) Quantitative Easing Monetary Policy
B )Tight monetary policy
C )Increase Tax
D )Adjustment of economic structure.

Answer 22

A) Quantitative Easing Monetary Policy

Question 23

The focus of the book is not on a rounded picture of Japan but on practices potentially useful for Americans wanting to improve their country.

Answer 23

True (Week 7)

Question 24

Which of the following explanations of the Japanese miracle were emphasized by Vogel?

(a) Japan’s effective organization and superior planning
(b) Japanese workers receive low salaries
(c) Japan’s disciplined work force
(d) Japan copied Western Technology

Answer 24

A) Japan’s effective organization and superior planning

&

C) Japan’s disciplined work force

Question 25

Japanese officials felt that economic and political security was possible without expanding into China.

Answer 25

False

Question 26

According to Barnhart, what incident effectively closed the door on peaceful settlement between the US and Japan?
A – The Mukden (Manchuria) Incident
B – The bombing of Nanjing
C – American imposed freeze of Japanese assets
D – Continuation of Japanese Southward Expansion

Answer 26

C - American imposed freeze of Japanese assets

Question 27

What was the reason for Obama missing the two Asian summits?
A) He didn’t want to go
B) He was in the Middle East
C) Political problems at home

Answer 27

C) Political Problems at home

Question 28

Is the Obama administration’s “pivot” strategy to strategically move away from the Middle East towards Asia?

Answer 28

True

Question 29

Sino/Japanese relations have recently deteriorated because of the violence in the Senkaku Islands

Answer 29

True

Question 30

China surprisingly won the bid for the long-range missile system being built in _____
A) Germany B) Iran C) North Korea D) Turkey

Answer 30

D) Turkey

Question 31

The major emphasis of the Chinese five year plan in 1953, as well as the more ambitious Great Leap Forward, was on agriculture.

Answer 31

False

Question 32

Among other consequences of the Great Leap Forward was

a) celebrated agricultural development.
b) the production of a whole new generation of machinery.
c) soaring industrial output.
d) widespread famine and death.

Answer 32

D) Widespread famine and death

Question 33

The Sino-Soviet Split was based on ideological differences, in that Khrushchev wanted to practice a more radical form of Communism.

Answer 33

False

Question 34

Which of the following was not a contributing event to the Sino-Soviet Split?
 A. Vietnam War
 B. Soviet-American Rapprochement
 C. Sino-American Rapprochement
 D. Cuban Missile Crisis

Answer 34

C) Sino-American Rapprochement

Question 35

Police officials were encouraged not to punish the violence, including killings, carried out by Red Guards.

Answer 35

True

Question 36

Mao’s wife, Jiang Qing:
A. Refused to confess
B. Blamed Mao for her actions
C. Was sentenced to death, but never executed
D. Committed suicide
E. All of the above

Answer 36

E) All of the above

Question 37

Which of the following was NOT a “channel” that the United States and China used to have secret talks?
A. Japan channel
B. Pakistan channel
C. Paris channel
D. UN channel

Answer 37

A) Japan Channel

Question 38

In which year the United States to establish diplomatic relations with china?
A. 1972
B. 1973
C. 1975
D. 1979

Answer 38

D) 1979

Question 39

Why does Iraq want US military supplies:
A) To combat “spill over” violence from Syria
B) To overthrow the Iraqi government
C) To counter the Al’ Qaeda resurgence
D) Both A and C

Answer 39

D) Both A and C

Question 40

What year did US forces leave Iraq?‬
‪A.2010‬‬‬‬‬
‪B.2011‬‬‬‬‬
‪C.Didn’t know we left‬?‬‬‬‬

Answer 40

B) 2011

Question 41

What Conference was the issue of an independent Kurdish state, Kurdistan, discussed?
A) Conference of Paris
B) Conference of Cairo
C) Conference of Versailles
D) Conference of the Lords of the Ring

Answer 41

B) Conference of Cairo

Question 42

Great Britain’s main interest in the Middle East was to secure its routes to India and the Suez Canal from Russian and French expansion.

Answer 42

True

Question 43

Oil played a significant role throughout the conflict due to the importance of oil for both Iran and Iraq’s economy and had implications for Western involvement since more than half the world’s oil production was in the Persian Gulf.

Answer 43

True

Question 44

Which of the following can be understood more by examining the Iran-Iraq War?

a. Iran’s anxiety about internal security
b. Iran’s fear of foreign intelligence operatives
c. Iran’s desire to assert its regional influence
d. Iran’s desire for an independent nuclear enrichment program
e. all of the above

Answer 44

E) All of the above

Question 45

The SIGIR report found a sizable amount of fraud and waste during the reconstruction of Iraq

Answer 45

True

Question 46

The U.S. spent roughly $__ billion on the reconstruction of Iraq:

a) 10
b) 3
c) 60
d) 40

Answer 46

C) 60 billion

Question 47

The United States was a founding member of UNESCO

Answer 47

True

Question 48

Palestine was accepted as a member of UNESCO in ____

a. 1998
b. 2001
c. 2009
d. 2011

Answer 48

D) 2011

Question 49

Ataturk believed that all nations have the right to self-determination.

Answer 49

False

Question 50

Which of the following was NOT a component of Kemalism?

(a) Fashion reform
(b) Banning of religion
(c) Equal rights for women
(d) Education reform

Answer 50

B) Banning of religion

Question 51

One successful US policy is the emphasis on “linkage,” in which the US will not to normalize relations with Iran until a full range of changes, from nuclear policy to the use of terrorism to relations with Iraq, takes place

Answer 51

False

Question 52

Former President _______ most closely mirrors the current Iranian president Rouhani and his staff in looking towards a more reformist approach to US-Iranian relations, including dialogue regarding Iran’s nuclear program
A. Khamenei B. Rafsanjani C. Khatami D. Ahmadinejad

Answer 52

C) Khatami

Question 53

Which of the following goals did Nasser focus on achieving during his time as Egypt’s leader?
A) The resolution of the Palestinian/Israeli issue, either by force or through peace
B) The destruction of the Muslim Brotherhood and Political Islam
C) The establishment of a pan-Arab state extending from the Atlantic to the Gulf
D) All of the above

Answer 53

D) All of the above

Question 54

During the 1950s, Nasser focused on developing a strong relationship with the United States by signing an arms agreement following the Bandung Conference in Indonesia.

Answer 54

False

Question 55

Jahiliyya is the barbaric state wherein Muslims do not recognize their violation of the imperative to devote all worship to God alone.

Answer 55

True

Question 56

Wahhabi doctrine is responsible for radicalizing the suicide bombers who attacked the World Trade Center towers on September 11th, 2001

Answer 56

False

Question 57

Pakistan has never used radical militant groups as foreign policy tools.

Answer 57

False

Question 58

After partition of the British Empire the Bengal Delta region became part of what state?
A. India
B. Nepal
C. Pakistan
D. Burma

Answer 58

C) Pakistan

Question 59

India helped a newly independent Bangladesh win the Liberation War of 1971.

Answer 59

True

Question 60

Brazil is angry with the U.S. due to leaked NSA documents that expose electronic-surveillance operations targeted at the Brazilian citizenry.

Answer 60

False

Question 61

Which of the following is NOT a consequence of the U.S.-Brazilian spying crisis?

(a) U.S. companies are no longer allowed to maintain Brazilian operations
(b) President Rouseff postponed a state dinner which was to be held in her honor
(c) U.S. technology companies are experiencing revenue loss in emerging markets
(d) Brazil is considering disconnecting itself from the U.S. internet

Answer 61

(a) U.S. companies are no longer allowed to maintain Brazilian operations

Question 62

How many attempts did it take for the government to destroy Conselheiro and his forces at Canudos?
A. 2
B. 3
C. 4
D. 5

Answer 62

C. 4

Question 63

Conselheiro decided to create the settlement of Canudos because of its fertile land?

Answer 63

False

Question 64

Getúlio Vargas, at some point during his political career, openly supported the following institution(s):
A. Fascism
B. Social Democracy
C. Populism
D. Catholicism
E. All of the above

Answer 64

E. All of the above

Question 65

Vargas was a firm supporter of the Allied Powers and the United States during World War II.

Answer 65

False. he only supported the Allies and the United States after receiving financial support.

Question 66

Emiliano Zapata and Pancho Villa collaborated throughout the Mexican Revolution

Answer 66

False

Question 67

• What was the major outcome of the Mexican Revolution?:

(a) The transition from a hacienda system to publicly owned agriculture,
(b) the beginnings of a multi-party democracy in Mexico, (c) the imposition of Villa and Zapata as national government figures,
(d) the return to a brutal, Porfiriato-like dictatorship,
(e) none of the above

Answer 67

E) None of the above

Question 68

Blustein simply blames corrupt officials and nefarious bankers for the collapse of Argentina in 2001.

Answer 68

False

Question 69

The Argentine debacle resembles the current Greek crisis because of what two factors:

a. Empanadas and spanakopita
b. Debt and monetary policy
c. Dictatorships and democratization
d. Corruption and wind energy

Answer 69

B) Debt and Monetary Policy

Question 70

Crackdowns by Nigerian security forces resulting in the capture and execution of its founder Mohammed Yusuf have weakened Boko Haram.

Answer 70

False

Question 71

President Obsanjo (Nigeria) had a two alterantive plan to maintain power after his second term

Answer 71

True

Question 72

_______ is a power sharing comcpet between Nigeria’s Muslim north and Christian South.
A) Zoning B) Delta cyphining C) Boko Haram D) AFRICOM

Answer 72

A) Zoning

Question 73

In the last quarter of the eighteenth century, and for long after, … was the
single most important industry in Britain and much of Europe.
(a) the smelting of iron, (b) the building of steam engines, (c) the spinning of
thread and the making of cloth, (d) the building of railroad

Answer 73

C) The spinning of thread and the making of cloth

Question 74

Which explanation does Robert Allen find most compelling for why the
Industrial Revolution took place in Britain?
(a) Enclosure movement in the countryside created cheap labor for factories in the
cities,

(b) more technological innovation due to greater penetration of the Scien-
tific Revolution,

(c) cultural differences, particularly the Protestant ethic,
(d) a combination of relatively high wages and cheap energy and capital,
(e) wealth gained from trade and dominion (exploitation of overseas empires)

Answer 74

D) a combination of relatively high wages and cheap energy and capital

Question 75

According to Allen, the increase in English coal mining and production over the period from 1560 to 1800 was due to the increased demand, resulting from the success of English trade and the growth of London

Answer 75

True

Question 76

The breakthrough that enabled Britain to increase its production of iron in the eighteenth century was the use of … for smelting.
(a) coal, (b) charcoal, (c) coke, (d) blasts of hot air

Answer 76

C) Coke

Question 77

Evidence that the French Revolution retarded industrialization can be found in teh examples of Antoine Lavoisie, Marcu Brunel and teh du Ponts

Answer 77

True

Question 78

According to Allen, the Industrial Revolution spread beyond England only when English engineers improved their inventions to the point where it made economic sense for them to be used elsewhere.

Answer 78

True

Question 79

Adam Smith argued that the source of wealth was …
(a) gold, (b) a favorable balance of trade, (c) supply and demand, (d) labor

Answer 79

D) Labor

Question 80

Smith believed that the way to increase wealth was
through a division of labor and specialization since that would maximize production (and the wealth of nations).

Answer 80

True

Question 81

Smith’s (economic) policy advice can be summarized as …
(a) mercantilism, (b) protectionism, (c) laissez-faire, (d) Physiocratic

Answer 81

C) Laissez-faire

Question 82

The 19th century German economic thinker Friedrich List, who became a fierce opponent of Adam Smith, was influenced by the American debate over how to challenge Britain’s industrial ascendancy. Which U.S. free trader was he drawn to although philosophically he was on the side of interventionism?

A) Millard Fillmore

B) Andrew Jackson

C) John Quincy Adams

D) Alexander Hamilton

Answer 82

D) Alexander Hamilton

Question 83

For six months in 1919, Paris was the capital of the world, according to Margaret MacMillian, because the world’s most important business - peace - was debated there, new nations, organizations formed

Answer 83

True

Question 84

MacMillan summarizes the formative political campaigns of the Big Three as attacks —Wilson on banks, Clemenceau on the church, and Lloyd George
on (a) trade unions, (b) landowners and aristocracy, (c) shipping magnates, (d) Irish free staters

Answer 84

B) landowners and the aristocracy

Question 85

Clemenceau was not against the League of Nations, but
since the Franco-Prussian War of 1871 he believed a balance of power was crucial — meaning France needed Allies. His goals in the negotiation were to reduce the German threat and ensure that Britain and America would come to France’s aid.

Answer 85

True

Question 86

The UK’s secret agreements with France during the war
were primarily intended to protect and strengthen trade routes to India.

Answer 86

True

Question 87

Canadians suggested, if the League of Nations did not work, (a) a return to the balance of power, (b) an Anglo-Saxon alliance, (c) a division of Germany, (d) a new entente with Russia

Answer 87

B) An Anglo-Saxon alliance

Question 88

The “Supreme Council” began as a Council of Ten but eneded as a Council of Four. Besides foreign ministers, who was dropped? (a) Germans, (b) Japanese, (c) Italians, (d) Russians

Answer 88

B) Japanese

Question 89

Pressure for a rapid conclusion did not come from (a) disease, (b) hunger,
(c) demobilization, (d) inflation, (e) revolutionary insurrections

Answer 89

D) Inflation

Question 90

MacMillan says that Churchill and Foch were right about
the Bolsheviks, while Wilson and Lloyd George were wrong

Answer 90

True

Question 91

Keynes proposed financing economic recovery with (a) German reparations, (b) American aid, (c) a world bank, (d) a return to the gold standard

Answer 91

B) American Aid

Question 92

The Japanese demand for a provision on racial equality was most adamantly blocked by (a) Clemenceau, (b) Orlando, (c) Wilson, (d) Lloyd George

Answer 92

C) Wilson

Question 93

Article 231 - The “war guilt” clause - was a compromise put forward in part by John Foster Dulles to help solve the debate over reparations

Answer 93

True

Question 94

The first age of “globalization” in the modern sense of the word was (a) before teh First World War, (b) during the Great Depression, (c) after the Second World War, (d) at the end of the 20th Century

Answer 94

(A) WW1

Question 95

During the First World War, the British Government did not suspend convertiblity (the gold standard) as it had during the Napoleonic Wars, although the French and German Governments did.

Answer 95

False

Question 96

Montague Norman was the most influential banker in the world. His best friend was: (a) John Maynard Keynes, (b) Benjamin Strong, (c) Hjalmar Schact, (d) Emile Moreau

Answer 96

B) Benjamin Strong

Question 97

Benjamin Strong was (a) Chairman of the Federal Reserve, (b) Chancellor of the Exchequer, (c) Governor of the New York Fed, (d) Secretary of the U.S. Treasury

Answer 97

C) Governor of the New York Fed

Question 98

Emile Moreau argued against those who believed that international finance was an Anglo-American conspiracy to keep France down

Answer 98

False

Question 99

Hjalmar Schact succeeded in ending the period of hyperinflation in Germany in the early 1920s by returning to the gold standard; this action and the ensuing boom earned him the reputation of a financial wizard

Answer 99

False

Question 100

The policy that Montague Norman pursued as Governor o the Bank of England in returning Britain to the gold standard was: (a) deflation (i.e., letting the pound sterling increase in value) OR (b) devaluation

Answer 100

A) Deflation

Question 101

Europe impoverished itself by borrowing to finance the First World War. The county it borrowed from was the United States. Hence, after the war the US held most of the world’s gold. The European power with the most gold was: (a) Germany, (b) Britain, (c) France, (d) Soviet Union

Answer 101

C) France

Question 102

To repay the US, Britain and France were counting on the reparations imposed on Germany by the Treaty of Versailles

Answer 102

True

Question 103

Liaquat Ahamed believes that the Great dEpression was the result of inexorable economic forces, not policy mistakes

Answer 103

False

Question 104

Which banker’s first names were really “Horace Greeley”? (a) Norman, (b) Strong, (c) Schacht, (d) Moreau

Answer 104

C) Schacht

Question 105

Winston Churchill was (a) never a member of the Liberal Party, (b) a member of the Labour Party, (c) always a member of the Conservative Party, though he served in coalition governments, (d) a famous turncoat.

Answer 105

(d) a famous turncoat.

Question 106

When FDR asked Churchill what the Second World War should be called, he replied (a) the war to end all wars, (b) the unnecessary war, (c) the war to make the world safe for democracy, (d) the great patriotic war.

Answer 106

(b) the unnecessary war

Question 107

The high-mark of inter-war peace was embodied in the 1925 Locarno accords, negotiated between Austin Chamberlain, Aristide Briande, and Gustav Stresemann. True of False: While these agreements provided mutual guarantees of Germany’s western borders, there was no “Eastern Locarno,” with the implication that, despite French Agreements with POlan and Czechoslovakia, Germany’s eastern borders were open to revision

Answer 107

True

Question 108

What aspect of Hitler’s policy did Churchill warn about? His (a) fascism, (b) rearmament, (c) anti-communism, (d) hatred of Britain?

Answer 108

b) rearmament

Question 109

In November 1935, the Conservatives led by Stanley Baldwin won the last British General Election until 1945, with what as the keystone of its foreign policy? (a) The League of Nations, (b) splendid isolation, (c) renewed focus on empire, (d) rearmament

Answer 109

a) The League of Nations

Question 110

At the end of chapter 8, Churchill criticized the Baldwin
government for estranging Italy (and upsetting the Stresa Front and the balance of power in Europe) while gaining nothing for Ethiopia

Answer 110

True

Question 111

When Hitler occupied the Rhineland in March 1936, in
breach of the Treaties of Versailles and Locarno, but made conciliatory proposals, Baldwin refused to support French Foreign Minister Flandin’s proposal for a police action, saying he could not accept the risk of war

Answer 111

True

Question 112

Following Hitler’s annexation of Austria in March 1938,
Prime Minister Chamberlain concluded that there was nothing to be done to save Czechoslovakia

Answer 112

True

Question 113

In June 1938, French Premier Daladier (a) abandoned, (b) equivocated about,
(c) said nothing about, (d) reaffirmed French commitments to Czechoslovakia
dating from 1924

Answer 113

(d) reaffirmed French commitments to Czechoslovakia
dating from 1924

Question 114

At about the same time (June 1938), Hitler told his supreme commander Keitel that he was convinced, “as in the case of teh demilitarized zone [of the Rhineland] and the entry into Austria, that France will not march, and that therefore England wiill not intervene.”

Answer 114

True

Question 115

British Prime Minister Neville Chamberlain’s efforts in September 1938 to ensure “peace in our time” are generally remembered as a policy of:
(a) pacifism, (b) anti-communism, (c) rearmament, (d) appeasement

Answer 115

(d) appeasement

Question 116

Churchill wrote the following — “History, which, we are told, is mainly the record of the crimes, follies, and miseries of mankind, may be scoured and ransacked to find a parallel to this sudden and complete reversal of
five or six years’ policy of easygoing placatory appeasement, and its transformation almost overnight into a readiness to accept an obviously imminent war on far worse conditions and on the greatest scale” - about (a) the Munich Accord, (b) the Polish Guarantee, (c) the Nazi-Soviet Pact, (d) the German invasion of the Soviet Union

Answer 116

B) the Polish Guarantee

Question 117

At the end of April 1939, Chamberlain, reversing repeated pledges, (a) introduced conscription, (b) ordered a mobilization of imperial forces, (c) reversed British policy on India, (d) invited Churchill to join the Cabinet as First Lord of the Admiralty

Answer 117

A) Introduced conscription

Question 118

At the same time, British foreign policy foreign policy was unsure of how to respond to (a) Hitler’s denunciation of the Anglo-German naval agreement of 1935, (b) Hitler’s denunciation of the Polish-German non-aggression pact, (c) Litvinov’s offer of a united front with Britain, France and Poland, (d) Mussolini’s offer to mediate.

Answer 118

c) Litvinov’s offer of a united front with Britain, France and Poland

Question 119

When Germany invaded Poland, Chamberlain asked Churchill to become part of the War Cabinet as (a) First Lord of the Admiralty, (b) Lord Privy Seal, (c) Chancellor of the Exchequer, (d) Prime Minster.

Answer 119

a) First Lord of the Admiralty,

Question 120

Chamberlain resigned as Prime Minister when the
Germans invaded the Netherlands, Belgium and France on May 10 because he could not form a multi-party national government

Answer 120

True

Question 121

According to Kissinger, the United States consistently went to war throughout the twentieth century in the name of resisting aggression and reinforcing collective security

Answer 121

True

Question 122

Kissinger says that the Korean Conflict grew out of a double misunderstanding. One was that Communists, based on American statements that the peninsula lay outside the American defense perimeter, had not expected the U.S. to intervene. The other was a flaw in containment based on the assumption that the next war would be an unlimited one, beginning with a Soviet attack on teh United States or _______*

(a) Japan, (b) Southeast Asia, (c) the Middle East, (d) Europe

Answer 122

D) Europe

Question 123

After the Chinese Communists entered the war and counterattacked, Truman dropped what aim (which MacArthur’s landing at Inchon had made seem possible)?

(a) Liberation and unification, (b) defeating Communism, (c) containment,
(d) negotiating a ceasefire with the North Koreans

Answer 123

(a) Liberation and unification

Question 124

How was Vietnam different from the Korean Conflict?
(a) Vietnam was a conventional war, (b) it was a guerilla war, (c) it was not a colonial war for independence, (d) it was a proxy war with the PRC.

Answer 124

b) it was a guerilla war,

Question 125

What course did Eisenhower’s Secretary of State John Foster Dulles propose in reponse to French appealse for help at Dien Bien Phu? (a) a conference at Geneva, (b) massive airstrikes, including possible use of nuclear weapons, (c) United Action, (d) SEATO

Answer 125

c) United Action

Question 126

What new strategy did the Kennedy Administration develop to cope with the kind of war if faced in Vietnam and threat of wars of national liberation? (a) neo-colonialism, (b) brinksmanship, (c) MAD, (d) nation-building

Answer 126

(d) nation-building

Question 127

Kissinger’s interpretation (and explanation) of
the strength of anti-war protest and the Peace Movement is that the Vietnam Conflict caused American exceptionalism to turn on itself and question the very basis of the argument that the U.S. was not pursuing its own selfish interests buth international peace and progress

Answer 127

True

Question 128

The three great empires that came to dominate most of the Islamic world in the early modern era (Ottoman, Safavid, and Mogul) and that dominated it until the rise of the modern state system are called “gunpowder emprires” because the technological advantage of gunpowder brought to an end the instability inherent in the military patronage system.

Answer 128

True

Question 129

The “single most important political event in the history of the modern Middle East,” according to Gelvin, is (a) Zionism, (b) World War I, (c) nationalism, (d) WWII

Answer 129

b) WWI

Question 130

States in the state system in the modern Middle East were created in two ways, “by decree” (i.e., partitioned out of the Ottoman Empire by the victorious great powers Britain and France) or “by revolutiona nd conquest.” Which of the following was NOT created by decree? (a) Syria, (b) Palestine/Israel, (c) Egypt, (d) Iraq.

Answer 130

c) Egypt,

Question 131

Which state emerged as independent as a result of revolution? (a) Turkey, (b) Iran, (c) Egypt, (d) Saudi Arabia

Answer 131

C) Egypt

Question 132

Gelvin argues that the mandates system established for Syria, Jordan and Iraq (among other places) after the First World War stacked the deck against economic development (a) because mandatory powers were free to apply tarrifs, (b) could not apply any measure that would restrict trade, (c) could not maintain the usual colonial-style system of trade of buying raw materials and dumping finished goods on unprotected markets, (d) broke down under the threat of German U-boats during the Second World War.

Answer 132

b) could not apply any measure that would restrict trade,

Question 133

In 1924, seven months after the Hashemite sharif of Mecca Husayn (the father of Faysal of Iraq and ‘Abdullah of Jordan) had himself proclaimed the caliph of all Muslims, ibn Sa’ud drove him out of western
Arabia.

Answer 133

True

Question 134

The 1919 Revolution in Egypt occurred (a) when the British declared Egypt a protectorate, (b) when a delegation of Egyptian politicians tested Wilson’s promise of self-determination by petitioning the British high commissioner for the permission to go to the Paris peace talks, (c) when the British arrested and deported the leader of this delegation Sa’d Zaghlul, (d) when the Milner Commission’s recommendation for conditional independence was rejected.

Answer 134

(c) when the British arrested and deported the leader of this delegation Sa’d Zaghlul,

Question 135

During the period of conditional Egyptian independence that existed for most of the inter-war period power was shared by the Egyptian king (a de- scendant of Mehmet Ali), the British Ambassador, and (a) the Wafd party, (b) the Communist Party, (c) the Muslim Brotherhood, (d) the Arab League.

Answer 135

(a) the Wafd party

Question 136

Gelvin argues that by limiting its focus to independence and by representing only the interests of some social groups the main nationalist movement in Egypt left the door open for other political movements, but the leading modern Islamist organization made its peace with the idea of the na- tion-state (and was not pan-Arab).

Answer 136

True

Question 137

Which of the following did not send armies of occupation to western Ana- tolia at the end of World War I? (a) Britain, (b) France, (c) Italy, (d) Greece.

Answer 137

(a) Britain,

Question 138

The leader of Turkey’s anti-occupation forces, Mustafa Ke- mal, eliminated all clothing styles that alluded to regional, religious or ethnic identities — including the fez that had been associated with high Ottoman modernity.

Answer 138

True

Question 139

The state-directed economic model that Kemal adopted for Turkey was closer to (a) the New Deal or (b) the Fascist model of Italy.

Answer 139

b) the Fascist model of Italy.

Question 140

The leading opponents of Kemalism today are Kurds and Islamists.

Answer 140

True

Question 141

When the Bolsheviks took Russia out of the First World
War, Britain was able to impose the Anglo-Persian Treaty of 1919 on Persia

Answer 141

False

Question 142

Reza Khan, who had himself proclaimed Shah in 1926, pro- moted a single nationalist ideology that went back to Persia’s pre-Islamic, Ar- yan roots and successfully eliminated Turkish and Arabic words from the Per- sian language.

Answer 142

False - [was NOT successful at eliminating Turkish & Arabic words]

Question 143

Reza Shah introduced the French civil law code and the Ital- ian penal code and refused to give exit visas for pilgrims wishing to go to Mecca and Medina or to the Shi’a holy cities of Karbala and Najaf in Iraq.

Answer 143

True

Question 144

Which of the following is NOT usually cited as an explanation of Kemal’s “success” versus Reza Shah’s failure? (a) defensive developmentalism in the Ottoman Empire had greater impact because the state had played a leading role for a longer period of time, (b) Kemal created an interdependent state and government at the same time while Reza Shah created a government in a state that already had a long history of independence, (c) Kemal established his changes following a popular war of national liberation, while Reza Shah came to power through a coup d’état, (d) Turkey was a Sunni country while Iran was Shi’a.

Answer 144

(d) Turkey was a Sunni country while Iran was Shi’a. [‘d’ is true, but not usually cited as an explanation.]

Question 145

The first nationalist movement in the Middle East was (a) the Syrian, (b) the Egyptian, (c) the Lebanese, (d) the Arab.

Answer 145

b) the Egyptian

Question 146

Nationalism came to the Ottoman Empire with the spread of the modern economic and state system and with the spread of modern in- stitutions of governance and market relations.

Answer 146

True

Question 147

20. The effort to create an Ottoman nationalism was led by bureaucrats and imperial functionaries wanting to copy European techniques of state- building. It was called (a) osmanlilik, (b) Young Turks, (c) Kemalism, (d) Ataturkism.

Answer 147

(a) osmanlilik,

Question 148

Economic developments in the 19th century, such as the opening of the Suez Canal in 1869, encouraged the economic integration of Greater Syria with Mesopotamia (the area that would become Iraq).

Answer 148

False

Question 149

Efforts by the Young Turks in the early 20th century to “turkify” the Ottoman Empire — e.g., by making Turkish the official lan- guage — did not contribute to the rise of Arab nationalism.

Answer 149

False - Did contribute

Question 150

Nationalist movements created nations in the modern Mid- dle East; despite efforts to claim ancient forebearers, the ideas of a Turkish, Persian or Arab nation really had “shallow roots.”

Answer 150

True

Question 151

Nationalist parties did not emerge in the Levant and Meso- potamia until after the First World War.

Answer 151

True

Question 152

Arab nationalism had to compete with regional national- isms, and it fell victim to the mandate system and that system’s successor, the regional state system.

Answer 152

True

Question 153

Zionism is not a nationalist movement that redefined a reli- gious community (the Jews) as a nationalist community but a response to Eu- ropean anti-Semitism.

Answer 153

False - [It was a nationalist movement and a response….]

Question 154

27. A high-profile instance of anti-Semitism in Europe from the 1890s was the Dreyfus case, resulting from the accusation of a Jewish officer (Dreyfus) of spying. Dreyfus was an officer in which country? (a) Britain, (b) France,
    (c) Germany, (d) Russia.

Answer 154

b) France

Question 155

Which country was he [Dreyfus] accused of spying for? (a) France, (b) Austria-Hungary, (c) Russia, (d) Germany

Answer 155

d) Germany

Question 156

The First Zionist Congress, organized by Austrian journal- ist Theodor Herzl in Basel in 1897, created the World Zionist Organization and the “Basel Program” which called for the creation of a Jewish homeland through emigration in waves, called aliyot in Hebrew.

Answer 156

False - [through diplomacy]

Question 157

29. The Zionists of the second and third aliyot in 1904-14 and 1918-23 adopted slogans calling for the “conquest of land” and the “conquest of (a) language, (b) labor, (c) love, (d) light.”

Answer 157

b) labor

Question 158

30. An early success of the Zionist movement was (a) the creation of a distinct mandate for trans-Jordan in 1921, (b) the Sykes-Picot agreement of 1916, (c) the Balfour Declaration of 1916, (d) the Churchill White Paper of 1922

Answer 158

(c) the Balfour Declaration of 1916,

Question 159

Palestinians were not originally attracted to Arab national- ism and Syrian nationalism.

Answer 159

False - [were attracted originally…]

Question 160

Over the course of the mandate period Arab and Syrian na- tionalist options became less viable because the mandates divided the Arab world into separate states and separated Palestinian elites from Syrian (who were oriented to Paris).

Answer 160

True

Question 161

33. The unique aspect of Palestinian nationalism was that (a) it embraced both Christians and Muslims, (b) it was defined as distinct from Jordanian nationalism, (c) that it was defined in relation to Zionist settlement, (d) it was anti-Arab.

Answer 161

c) that it was defined in relation to Zionist settlement,

Question 162

After the 1948 war, the most traumatic event for Palestini- ans was the 1936 Great Revolt which was prompted by the expansion of the Jewish population of Palestine from 17 to 31% in the period from 1931 to 1935.

Answer 162

True

Question 163

After putting down the revolt with a brutal counterinsur- gency, the British first issued a White Paper in 1937 putting restrictions on (but not ending) Jewish immigration, calling for closer supervision of (but not ending) land sales, and setting a target for independence in ten years; when both communities rejected these proposals the British in 1939 proposed parti- tion into a Palestinian state and a Zionist state.

Answer 163

False - [all true but part. rej. in 1937]

Question 164

The 1948 war, which Israelis call their war for independ- ence, the Palestinians call the nakba — (a) the catastrophe, (b) the armistice,
(c) the settlement, (d) the holocaust.

Answer 164

a) the catastrophe

Question 165

37. The 1948 war also had an affect on other Arab states where groups of mili- tary officers accused their governments of entering the war half-heartedly and being unwilling to promote the sort of economic development that would have assured success on the battlefield. In which of the following states was there NOT a military coup d’état that could trace its roots to this war? (a) Syria (1949), (b) Egypt (1952), (c) Jordan (1955), (d) Iraq (1958)

Answer 165

(c) Jordan (1955)

Question 166

38. Which of the following was NOT a source of economic policy for the lead- ers of Middle Eastern states in the 1950s and 60s? (a) Communism, (b) mod- ernization theory, (c) Third Worldism, (d) neo-liberalism

Answer 166

(d) neo-liberalism

Question 167

These states were able to finance their policies, including their social programs, through the nationalization of foreign properties and of properties belonging to “enemies of the state,” through foreign aid, through oil, and through the ensuing economic growth

Answer 167

False - [not all grew]

Question 168

Gelvin argues that the piecemeal abandonment of subsi- dies for basic economies and employment guarantees under pressure from the United States and the World Bank/IMF in line with neo-liberal thinking created an opening for Islamist movements that trumpeted the same commit- ment to social justice and welfare that governments had espoused prior to 1970.

Answer 168

True

Question 169

While conceding that there are grounds for nostalgia about the liberalism and freedoms of the mandate period, Gelvin argues that the British and French fostered elites that had no history and that they imposed limitations on freedoms and governments.

Answer 169

True

Question 170

Gelvin traces the origins of the developmentalism of the military coups to its appeal to elites, such as merchants, and to the policies of the Great Powers, such as France, which introduced policies modeled on the Popular Front (1936-38).

Answer 170

True

Question 171

Britain, France and Israel invaded Egypt in 1956 because Nasser nationalized the Suez Canal, supported Algerian insurgents, conclud- ed an arms deal with Czechoslovakia, and discovered oil in the Sinai.

Answer 171

False

Question 172

Military coup leaders (Nasser in Egypt, the Ba’thists in Syr- ia and Iraq) typically deposed a monarch, confiscated his properties, dis- solved his court, dismissed parliaments, disbanded political parties and de- stroyed the economic power of old elites through land reform that gave peas- ants land and set up cooperatives.

Answer 172

True

Question 173

By the mid-1960s, the Egyptian government controlled banks, insurance companies, textile mills, sugar-refining and food processing facilities, air and sea transport, public utilities, urban mass transit, cinemas, department stores, agricultural credit institutions, fertilizer production and construction companies.

Answer 173

True

Question 174

The “revolutionary” regimes set up by military coups ex- panded the rights of workers but diminished the rights of women.

Answer 174

False

Question 175

The Shah of Iran attempted to emulate these reforms with his White Revolution in 1963, and he succeeded in building a strong base among the peasantry.

Answer 175

False - [He did attempt to emulate but he failed to build a base.]

Question 176

The original model for the exploitation of oil in the Middle East was (a) the concession, (b) participation, (c) joint partnership, (d) nationalization.

Answer 176

(a) the concession

Question 177

Gelvin interprets OPEC’s decrease in production in 1973 not so much as a response to the Arab-Israeli War of that year (the Yom Kip- pur War) as a reaction to the end of Bretton Woods.

Answer 177

True

Question 178

Some political scientists have attributed the Iranian Revo- lution of 1978-79 to the collapse of oil prices in 1975-77

Answer 178

True

Question 179

The uneven distribution of oil has led to a migration of la- bor in the Middle East, but the effects of these population movements are disputed.

Answer 179

True

Question 180

The United States replaced Britain and France as the primary Western power in the region after (a) the Second World War, (b) the Arab-Israeli War of 1948, (c) the Suez Crisis of 1956, (d) the Yom Kippur War of 1973.

Answer 180

(c) the Suez Crisis of 1956,

Question 181

American policy objectives — including the containment of the Soviet Union, access to oil, peaceful resolution of conflicts preserving a regional balance of power, the preservation of the State of Israel, and the pro- tection of sea lanes — have remained fairly constant over the ensuing 40 years, but in the region its policy has been perceived as inconsistent.

Answer 181

True

Question 182

American strategies for containment in the region have NOT included (a) a NATO-style Baghdad Pact, (b) strong-point containment resting on key countries like Iran, (c) the Nixon Doctrine, and (d) an Alliance for Progress.

Answer 182

d) an Alliance for Progress.

Question 183

Of all its policy objectives, the one the United States has not been able to attain, according to former NSC staffer William Quandt, is (a) containment,
(b) oil, (c) Israel, (d) ending regional conflicts.

Answer 183

d) ending regional conflicts.

Question 184

Gelvin attributes American’s intervention in Iraq in 2003 to the neoconservative agenda.

Answer 184

True

Question 185

Problems left over by the 1948 war did NOT include (a) lack of Arab recognition of Israel, (b) Palestinian refugees, (c) repatriation and restitution, (d) Arab governments’ focus on Israel.

Answer 185

d) Arab governments’ focus on Israel.

Question 186

After the 1967 war the focus shifted from the return of ter- ritories to the existence of Israel.

Answer 186

False - [The other way around.]

Question 187

The basis for all subsequent negotiations became the for- mula first laid out in UN Security Council Resolution 242: “land for peace.”

Answer 187

True

Question 188

The resolution calls for Israel to withdraw from all occu- pied territory and for all Arab states to sign peace treaties with Israel.

Answer 188

False - [not all]

Question 189

Which of the following was NOT one of the “three no’s” adopted by the Arab summit in Khartoum following the war? (a) no trade with Israel, (b) no negotiations with Israel, (c) no peace with Israel, (d) no recognition of Israel.

Answer 189

(a) no trade with Israel,

Question 190

What were NOT one of America’s other preoccupations at the time of the Yom Kippur War in 1973? (a) the Vietnam War, (b) the opening with China, (c) Castro’s adventures in Africa, (d) détente with the Soviet Union

Answer 190

(c) Castro’s adventures in Africa [later],

Question 191

Most of the international community considers Israeli settlements on oc- cupied territory a violation of the (a) First, (b) Second, (c) Third, (d) Fourth Geneva Convention, which states that an “occupying power shall not deport or transfer parts of its own civilian population into the territory it occupies.”

Answer 191

d) Fourth Geneva Convention,

Question 192

Until Spring 2004, the official American position was that the settlements were (a) a bargaining chip, (b) a violation of international law, (c) something to be ignored, (d) an obstacle to peace.

Answer 192

d) an obstacle to peace.

Question 193

While Israel initially pursued a policy of making Palestini- ans in the occupied territories economically dependent, since 1993 Israel has begun replacing Palestinian workers with workers imported from East and South Asia, Eastern Europe, and Africa.

Answer 193

True

Question 194

From early on, PLO leaders believed they would have to rely upon themselves, and not other Arab nations, for their liberation and that Palestine included trans-Jordan.

Answer 194

True

Question 195

Gelvin argues that the PLO concluded the Oslo Peace Ac- cords because it was faced with a challenge from Islamist groups like Hamas and needed a victory.

Answer 195

True

Question 196

The Arab-Israeli conflict has come full circle: It began as a dispute between Zionists and Palestinians, then turned into an issue of land- for-peace after the Six-Day War in 1967, but the Oslo Accords in 1993 turned it back into a dispute between Israelis and Palestinians.

Answer 196

True

Question 197

A key period for the history of modern Iran, according to Gelvin, was the premiership of Muhammad Mossadegh (1951-53), which fea- tured a drive to modernization like that of Arab military coup leaders (with a drive for an “oilless” economy) and a policy of non-alignment called “nega- tive equilibrium” (to distinguish it from the 19th-century Qajars’ efforts to play Britain and Russia off each other). It was key because its failure meant greater dependence on oil and the United States.

Answer 197

True

Question 198

Opposition to the Shah’s repression did NOT center on which of the fol- lowing: (a) armed groups modeled on Algerian and Palestinian resistance,
(b) agitation against the White Revolution centered on the Shi’a ulama, (c) oil field workers, (d) traditional elites.

Answer 198

(d) traditional elites.

Question 199

There are many explanations for the Iranian Revolution of 1978-79.
Which of the following is NOT one of them? (a) Religious or cultural factors stressing the role of Shi’ism, (b) economic explanations stressing the role of the 1975-77 downturn, (c) growth of anti-Americanism in the aftermath of the Yom Kippur War of 1973, (d) conjunction of a variety of factors including un- even development, easing of repression, formation of a broad opposition, and the right international context.

Answer 199

c) growth of anti-Americanism in the aftermath of the Yom Kippur War of 1973

Question 200

The Iranian Revolution is considered significant because (a) it established a new model for government based on the Qu’ran, (b) unlike previous revo- lutions it rejected modernist utopias for ancient ones, (c) it established a suc- cessful third way to economic development that was Islamist, (d) undercut Arab nationalism as the leading force in the Islamic world.

Answer 200

b) unlike previous revo- lutions it rejected modernist utopias for ancient ones,

Question 201

The election of Mahmoud Ahmadinejad reinforced the idea of an “Iranian Thermidor.”

Answer 201

False

Question 202

Mass-based Islamic movements — many of which drew inspiration from Iran — have transformed the political landscape in the Mid- dle East in recent years.

Answer 202

True

Question 203

Islamic movements are dedicated to expanding the reach of Islamic law, imposing Islamic norms on society, influencing government, but not working for social justice.

Answer 203

False - [Do make social justice a stated goal.]

Question 204

Islamic movements, because of their emphasis on Islam’s universalism, are opposed to nationalism, and never betray other Islamic movements.

Answer 204

False

Question 205

The Islamic movement in Lebanon is (a) Hamas, (b) Hizbullah, (c) Hada- tha, (d) Druze.

Answer 205

(b) Hizbullah,

Question 206

The Shi’as of Baghdad in many cases used to be Com- munists.

Answer 206

True

Question 207

The largest and most effective Islamist party for over a half century was the Muslim Brotherhood of Syria

Answer 207

False - [of egypt]

Question 208

Islamist political groups have an advantage in their strug- gle with official nationalisms in that they have in Islam their own form of cul- tural “authenticity.”

Answer 208

True

Question 209

Islamist movements have not found success at the polls.

Answer 209

False

Question 210

Gelvin is not sanguine about nationalism’s ability to weath- er the Islamist storm.

Answer 210

False - [he is sanguine]

Question 211

Gelvin is also not sanguine about globalization’s ability to democratize the Middle East.

Answer 211

True

Question 212

Brazil’s military coup in 1964 was the first in Latin America since the wave of democratization in the 1950s

Answer 212

True

Question 213

The first military government was formed in partnership with teh conservative National Democratic Union (UDN), because the “soft-liners” led by Castello Branco were concerned about (a) appearances, (b) legitimacy, (c) pressure from the United States, (d) the eventual return to democracy

Answer 213

(b) legitimacy

Question 214

Brazil’s military coup in 1964 called into question Kennedy’s strategy with his “alliance fo Progress,” which aimed to stregthen democratic rule by promoting economic growth and social reform

Answer 214

True

Question 215

The coup faced immediate armed resistance by guerillas who based their strategy on Fidel Castro’s emphasis on the countryside

Answer 215

False

Question 216

In 1968, the military issused a new Institutional Act (No. 5) that made the government a genuine dictatorship, closing Congress, making all crimes against national security subject to military justince, and introducing censorship. Which of the follow did NOT occur in the run-up to this step? (a) Wildcat strikes in Minas Gerais in protest against the fall in real wages, (b) noisy protest marches by students in Rio de Janerio, (c) a sermon by teh Cardinal Archibishop of Porto Alegre Alfredo Vincente Scherer endorsing liberation theolgy, (d) a speech by a young Rio Congressman Marcio Moreira Alves suggesting Brazilian women protest by witholding favors from the military

Answer 216

c) a sermon by teh Cardinal Archibishop of Porto Alegre Alfredo Vincente Scherer endorsing liberation theolgy,

Question 217

The principal architect of the boom from 1968 to 1974 was a young Sao Paulo economics professor (a) Antonio Delfim Neto, (b) Jose Pinero, (c) Guido Mantega, (d) Domingo Cavallo, who served as Minister of Finance in the hard-line Costa e Silva government

Answer 217

(a) Antonio Delfim Neto

Question 218

Two key policy instruments were indexation (automatic adjustment for inflation), which maintained stable capital markets, and (a) the “Crawling peg,” a sytem of small but frequent devaluations, (b) wage and price controls, (c) elimination of all tariffs to keep prices down through cheap imports, (d) privatization of state

Answer 218

(a) the “Crawling peg,” a sytem of small but frequent devaluations,

Question 219

Faced wqith teh oil shock of 1973, Brazils’ Finance Minister and his advisors decided to “grow their way out of the oil shock,” by borrowing, primarily on the accounts of Brazils’ state corporations

Answer 219

True

Question 220

Whena second oil shock followed in 1979, Brazil took two steps to reduce oil imports: a massive program to produce alcohol fuel for cars from sugar cane and a program for (a) building nuclear power plants, (b) using solar energy, (c) generating hydro-electric energy from dams on the Amazon, (d) drilling for oi lin teh cerrado

Answer 220

(a) building nuclear power plants,

Question 221

Brazil’s strategy of “debt-led growth,” aided by the availability of petro-dollars, collapsed when the U.S. Federal Reserve, led by Paul Volcker, introduced a massive credit squeeze. Brazil defaulted on commercial bank loans and its boom ended.

Answer 221

True

Question 222

While authoritarianism was eroded during the Presidency of General Ernesto Geisel (1974-79), a soft-line “Castelista” (moderate), the final push for a return to democracy centered on an effort for direct election of his successor (1979-85), Joao Baptista de Oliveira Figueiredo.

Answer 222

True

Question 223

The Constitution of 1988, meant to solidify Brazil’s return to democracy, failed to (a) stiuplate a long list of citizen rights, including such corporatist tenets as absolute job tenure for federal civil servants, (b) establish the inviolability of the state oil monopoly Petrobras, (c) expand property rights in the countryside, (d) reallocate federal revenues, giving more to states and municipalities but at the same time insuring a federal deficit

Answer 223

(c) expand property rights in the countryside,

Question 224

Initially the strongest political force, capitalizing on theintiail success of the cruzado, was teh opposition political party established during the military dictatorship, the PMBD, which drew on the strength of populism

Answer 224

True

Question 225

After the debacle of Fernando Collor de Melo’s brief Presidency, the strongest political parties in Brazil were teh PT led by Luiz Inacio Lula da Silva and teh PSDB led by Fernando Henrique Cardoso

Answer 225

True

Question 226

Cardoso’s success in the presidential election of November 1994 turned on his alliance with the PFL, a break-awy party of the PMDB that had supported the election of Tancredo Neves

Answer 226

False

Question 227

According to the “Myth of Racial Democracy,” race is less important that social calss, education, or luck in a clientalistic culture like Brazil

Answer 227

True

Question 228

Insurance is about the management of risk, but an adequate theoretical basis for the evaluation of risk did not exist until the late 17th century, when a series of crucial mathematical breakthroughs were made, including (a) proba- bility, (b) life expectancy, (c) certainty, (d) normal distribution, (e) utility, (f) infer- ence, (g) all of the foregoing.

Answer 228

(g) all of the foregoing.

Question 229

True or false. The first successful effort to turn this theory into practice and create a modern insurance fund based on correct actuarial and financial principles was the Scottish Ministers’ Widows’ Fund founded in 1748 by two Scottish ministers, Robert Wallace and Alexander Webster.

Answer 229

True

Question 230

Which of the following pioneered the use of insurance to develop the wel- fare state?

(a) German Chancellor Otto von Bismarck (conservative), (b) British Prime Minister David Lloyd George (Liberal), (c) British Prime Minister Ramsay MacDonald (Labour), (d) American President Franklin D. Roosevelt (Democrat)

Answer 230

(a) German Chancellor Otto von Bismarck (conservative)

Question 231

Which state took the principle of the welfare state — compulsory social insurance to tackle “want, disease, ignorance, squalor and idleness” (e.g., as laid out here during the Second World War by the Beveridge Report) — fur- thest, becoming the world’s welfare superpower?
(a) Britain, (b) Germany, (c) the United States, (d) Japan

Answer 231

(d) Japan

Question 232

Which economist is associated with the changes in the welfare state that were implemented in the late 20th century?

(a) John Maynard Keynes, (b) Milton Friedman, (c) John Kenneth Galbraith,
(d) Joseph Stiglitz

Answer 232

b) Milton Friedman

Question 233

Which country went the furthest in implementing this economist’s recom- mendations, which included ending the “stagflation” (stagnation and infla- tion) of the 1970s by reducing deficit spending?
(a) Britain under Margaret Thatcher, (b) the United States under Ronald Rea- gan, (c) China under Deng Xiao-ping, (d) Chile under Augusto Pinochet

Answer 233

(d) Chile under Augusto Pinochet

Question 234

True or false. One of the innovations put forward by one of this econo- mist’s disciples, José Piñero, was a radically new pension system that re- placed a payroll tax with an individual Personal Retirement Account.

Answer 234

True

Question 235

Another way of buying protection, besides insurance and welfare, is hedg- ing; the origins of hedging can be found in agriculture when a farmer made a contract with a merchant to sell his produce at a certain price. Standardized, with rules for enforcement, and a market for selling them, these contracts were called (a) futures, (b) derivatives, (c) options, (d) swaps.

Answer 235

(a) futures

Question 236

Property-owning democracies were the creation of (a) Revolutionary France,
(b) Victorian Britain, (c) New Deal America, (d) Communist China.

Answer 236

a) Revolutionary France

Question 237

True or false: The decline of the landowning aristocracy in Victorian Brit- ain was due to decreased grain production around the world, rising transpor- tation costs, and the raising of tariffs (repeal of the Corn Laws in 1846).

Answer 237

False

Question 238

True or false: In the United States, the most important New Deal initiative that increased the opportunity for Americans to own a home (blunting the ap- peal of Communism) was the Federal Housing Administration. The FHA pro- vided federally backed insurance to mortgage lenders, standardized the long- term mortgage and created a national system of inspection and valuation. The FHA also laid the basis for a national secondary market in 1938 when a new Federal National Mortgage Association — nicknamed “Fannie Mae” — was authorized to issue bonds and use the proceeds to buy mortgages from local Savings & Loans.

Answer 238

True

Question 239

The practice of giving whole areas negative credit-rating reinforced segre- gation and was known as (a) red-, (b) green-, (c) black-, (d) blue-lining.

Answer 239

(a) Red

Question 240

When Savings and Loans, which provided mortgages, were hit with dou- ble-digit inflation in the late 1970s and sharply rising interest rates imposed by Fed Chairman Paul Volcker to break the wage-price spiral, the Carter and Reagan Administrations tried to salvage the sector with tax breaks and
(a) regulation, (b) deregulation, (c) competition, (d) bail outs. The result was what economists call “moral hazard.” Extra credit: why?

Answer 240

(b) deregulation,

Question 241

True or false: When the S&Ls tried to sell their mortgages to remain sol- vent, Salomon Brothers bundled them as government-backed securities and sold them as an alternative to government and corporate bonds in a process known as “securitization.”

Answer 241

True

Question 242

True or false: The Subprime Crisis: The subprime mortgage market busi- ness model worked as long as interest rates stayed low, borrowers kept their jobs and real estate prices continued to fall

Answer 242

False (rise).

Question 243

True or false: During the Asian Financial Crisis of 1997-8, the convention- al wisdom was that financial crises were less likely to happen on the “periphery” of the world economy, in the so-called emerging markets.

Answer 243

False

Question 244

In the two years after Silicon Valley’s dot-com bubble peaked in August 2000, U.S. stock prices fell by almost (a) one eighth, (b) one quarter, (c) one third,
(d) one half, and the Standard & Poor’s 500 did not recoup their losses until May 2007.

Answer 244

(d) one half, and the Standard & Poor’s 500 did not recoup their losses until May 2007.

Question 245

True or false: Three months later, when the credit crunch hit the U.S. market, as millions of households found they could not service their sub- prime mortgages, the remarkable development was that the Asian economy was scarcely affected, suggesting a “decoupling” and one of the most aston- ishing shifts ever in the global balance of financial power.

Answer 245

True

Question 246

True or false: Globalization in the sense of a rapid integration of interna- tional markets for commodities, manufactures, labor and capital, is not a new phenomenon, but occurred in the three decades before 1914, but it ended with a bang not a wimper at the outbreak of the First World War.

Answer 246

True

Question 247

True or false: In 1913, 25% of the world’s stock of foreign capital was in- vested in countries with per capita incomes of one fifth or less of U.S. per cap- ita GDP; in 1997, the proportion was just 5%.

Answer 247

True

Question 248

True or false: Besides the spread of the gold standard, one of the attrac- tions of foreign investment for the British was control of their colonies, practi- cally ensuring no default, but in China, despite European treaty ports and control of Chinese customs, events like the war with Japan (1894-5), the Boxer Rebellion (1900), and the Revolution (1911), were hard to control.

Answer 248

True

Question 249

In 1910, the same year Andrew Carnegie established his Endowment for International Peace, left-leaning British journalist Norman Angell published The Great Illusion, arguing (a) that peace was a capitalist illusion, (b) that war was an impossibility because of the interdependence of credit-built finance, (c) that war was inevitable because of economic competition, (d) that default was inevitable.

Answer 249

b) that war was an impossibility because of the interdependence of credit-built finance,

Question 250

In the last week of July 1914, when investors began to realize the likeli- hood and scope of the coming war, bond and stock prices began to fall, ex- change rates went haywire; stock markets closed for (a) a week, (b) two weeks, (c) a month, (d) up to five months. Government authorities responded, as they had in the Napoleonic Wars, by releasing banks from liability and “injecting liquidity” into the system.

Answer 250

(d) up to five months. Government authorities responded, as they had in the Napoleonic Wars, by releasing banks from liability and “injecting liquidity” into the system.

Question 251

When Nixon abandoned Bretton Woods in 1971 and the Arab oil embargo struck in 1973, most central banks tended to accommodate the price shock with easier credit, leading to an inflationary spiral. “Petrodollars” were recy- cled by investments in (a) the Middle East, (b) the Far East, (c) Latin America,
(d) Western Europe.

Answer 251

c) Latin America,

Question 252

The response to Mexican default in 1982 was the imposition of “conditionality” — no reforms, no money — by the IMF & World Bank in the form of 10 policies known as the (a) Washington, (b) New York, (c) Geneva,
(d) Buenos Aires Consensus, including fiscal discipline, tax reform, property rights, privatization, deregulation.

Answer 252

a) Washington

Question 253

True or false: Joseph Stiglitz, the World Bank’s Chief Economist at the time of the Asian Financial Crisis of 1997-98, argued that the imposition of these measures actually worsened the crisis, but a convincing argument of how the crisis might have been better managed along Keynesian lines has not been made in Niall Ferguson’s view.

Answer 253

True

Question 254

The hedge fund manager (for Quantum) that helped force the devaluation of the British pound (and uncoupling from the European Exchange Rate Mechanism ERM) in 1992, when German borrowing to finance unification was driving up interest rates (and the Deutschmark), was (a) Karl Popper, (b) Kenneth C. Griffin, (c) Gerson von Bleichröder, (d) George Soros.

Answer 254

d) George Soros.

Question 255

Long-Term Capital Management — relying on a mathematical model to calculate the price of an option to buy stock (a model that earned a Nobel Prize)— failed spectacularly when the (a) Russian, (b) Argentinian, (c) Thai, (d) Malaysian Government defaulted in August 1998 — demonstrating short- term capital mismanagement (and forgetting history).

Answer 255

(a) Russian

Question 256

In describing the dual economy of “Chimerica,” Niall Ferguson lays out a series of ways in which the Chinese and American economies relate to each other. Which of the following is NOT one of them? (a) By outsourcing manu- facturing to China, U.S. corporations have been able to reap the benefits of cheap la- bor. (b) By selling billions of the dollars that it earns, China has been able to keep the Chinese currency from strengthening against the dollar — part of a system of Asian currency pegs some have called Bretton Woods II. (c) By importing cheap Chinese goods Americans have been able to buy more for their dollar. (d) By selling billions of dollars of bonds to the People’s Bank of China, the United States has been able to en- joy significantly lower interest rates than would otherwise have been the case.

Answer 256

b) By selling billions of the dollars that it earns, China has been able to keep the Chinese currency from strengthening against the dollar — part of a system of Asian currency pegs some have called Bretton Woods II.

Question 257

True or false: Even more important than the rise of hedge funds for the reor- ientation of global finance since 1998 has been the creation of sovereign wealth funds by countries running large trade surpluses. By the end of 2007, they had around $2.6 trillion under management , and were not far behind government pension funds and central bank reserves.

Answer 257

True