- 1. Lords of Finance by Liaquat Ahamed presents a compelling narrative that explores the intricate relationships and decisions made by the four central bankers who played pivotal roles in shaping the global economy in the early 20th century. These figures—Benjamin Strong of the Federal Reserve, Montagu Norman of the Bank of England, Hjalmar Schacht of the Reichsbank, and Émile Moreau of the Bank of France—are depicted against the backdrop of the turbulent interwar period, where their actions directly influenced the events leading up to the Great Depression. Ahamed meticulously details how their policies, driven by differing national interests and philosophies, contributed to a devastating economic collapse that transcended borders, bringing to light the complex interplay between national stability and global economics. He describes their struggles with the liberal international order, the gold standard, and the inherent tensions that arose from their attempts to navigate through the challenges of war reparations, deflation, and the rise of extremism. Through thorough research and engaging storytelling, Ahamed not only provides a historical account but also offers valuable insights into the lessons that can be learned about economic governance, making 'Lords of Finance' a significant read for anyone interested in finance, history, and the intricate dynamics of power.
Who is the author of Lords of Finance?
A) Ben Bernanke
B) Milton Friedman
C) Liaquat Ahamed
D) John Maynard Keynes
- 2. Which central banker was known as the 'Old Lady of Threadneedle Street'?
A) Émile Moreau
B) Hjalmar Schacht
C) Benjamin Strong
D) Montagu Norman
- 3. Who was the influential head of the New York Federal Reserve during the 1920s?
A) Hjalmar Schacht
B) Montagu Norman
C) Émile Moreau
D) Benjamin Strong
- 4. Which German central banker helped stabilize the Weimar Republic's currency?
A) Montagu Norman
B) Hjalmar Schacht
C) Émile Moreau
D) Benjamin Strong
- 5. Who was the governor of the Banque de France featured in the book?
A) Hjalmar Schacht
B) Montagu Norman
C) Benjamin Strong
D) Émile Moreau
- 6. What year did Benjamin Strong die, creating a leadership vacuum before the Great Depression?
A) 1929
B) 1930
C) 1927
D) 1928
- 7. What was the primary economic event the book argues these central bankers failed to prevent?
A) The Great Depression
B) World War I
C) The 1920s boom
D) The 1907 Financial Panic
- 8. What monetary system were the central bankers trying to restore after WWI?
A) Fiat Currency System
B) The Silver Standard
C) The Gold Standard
D) Bretton Woods System
- 9. Which country returned to the gold standard at the pre-war parity in 1925?
A) United States
B) France
C) Germany
D) Great Britain
- 10. Which country experienced hyperinflation in the early 1920s?
A) France
B) Germany
C) Great Britain
D) United States
- 11. What prize did Lords of Finance win in 2010?
A) Pulitzer Prize for History
B) National Book Award
C) Nobel Prize in Economics
D) Booker Prize
- 12. Which country accumulated large gold reserves in the late 1920s?
A) Great Britain
B) France
C) United States
D) Germany
- 13. What was the ultimate fate of the gold standard by the mid-1930s?
A) Made mandatory worldwide
B) Strengthened and reformed
C) Replaced by silver standard
D) Effectively abandoned by most countries
- 14. Benjamin Strong was the influential head of which institution?
A) Banque de France
B) Bank of England
C) Federal Reserve Bank of New York
D) Reichsbank
- 15. Hjalmar Schacht was the president of Germany's central bank, the...
A) Reichsbank
B) Deutsche Bank
C) Bundesbank
D) Dresdner Bank
- 16. What was the primary consequence of Britain's return to the gold standard at the pre-war parity?
A) It caused immediate hyperinflation
B) It made British exports too expensive
C) It strengthened the pound too much
D) It led to a stock market boom
- 17. What was the Dawes Plan designed to address?
A) German war reparations
B) American banking regulations
C) French agricultural subsidies
D) British colonial debt
- 18. The Young Plan was a successor to which earlier plan?
A) The Dawes Plan
B) The Schlieffen Plan
C) The Marshall Plan
D) The Morgenthau Plan
- 19. How did the death of Benjamin Strong in 1928 affect central banking cooperation?
A) It strengthened the Federal Reserve
B) It led to immediate policy changes
C) It had no significant impact
D) It weakened international coordination
- 20. What was the significance of the 1927 meeting at Long Island?
A) It ended World War I
B) It created the International Monetary Fund
C) Central bankers attempted to coordinate monetary policy
D) It established the United Nations
- 21. What was the main difference between Benjamin Strong and other central bankers?
A) He had no formal economic training
B) He opposed the gold standard
C) He came from a banking family
D) He was more willing to innovate and experiment
- 22. What year did the Wall Street Crash occur, a key event discussed in the book?
A) 1929
B) 1914
C) 1939
D) 1921
- 23. What was Benjamin Strong's primary concern in the late 1920s?
A) Building French gold reserves
B) Preventing stock market speculation
C) Supporting British exports
D) Fighting German inflation
- 24. Which economist's ideas about the economic consequences of the peace are referenced in the book?
A) David Ricardo
B) Karl Marx
C) Adam Smith
D) John Maynard Keynes
- 25. What was the primary tool central bankers used to protect their gold reserves?
A) Wage controls
B) Interest rates
C) Export subsidies
D) Tariffs
- 26. What year did Britain abandon the gold standard?
A) 1936
B) 1931
C) 1929
D) 1933
- 27. Which U.S. president took America off the gold standard?
A) Franklin D. Roosevelt
B) Herbert Hoover
C) Woodrow Wilson
D) Calvin Coolidge
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