5/5/26, 12:54 AM Quiz 1 (reviewing 1/28's lecture): Spring 2026-IE 420-Financial Engineering-Sections GO, UO
Quiz 1 (reviewing 1/28's lecture)
Due Feb 11 at 5:30pm
Points 10
Questions 46
Time Limit None
Instructions
Questions to test key terms and concepts from the previous lectures.
Attempt History
Attempt Time Score
LATEST Attempt 1 75 minutes 10 out of 10
Score for this quiz: 10 out of 10
Submitted Feb 11 at 2:02am
This attempt took 75 minutes.
Correct answer
Question 1
pts
In the lecture, “currency” most directly refers to:
Local money typically issued by governments for transactions and saving
Only gold and other precious metals
A company’s shares traded on an exchange
Any asset that goes up in value over time
Correct answer
Question 2
pts
Which is a key feature of a gold-backed currency system?
Interest rates must be negative
The currency’s value is set by social media sentiment
Banks can lend only if they have 100% of deposits in cash
The currency has a fixed exchange rate to physical gold (or another metal)
Correct answer
https://canvas.illinois.edu/courses/65661/quizzes/408041 1/13
, 5/5/26, 12:54 AM Quiz 1 (reviewing 1/28's lecture): Spring 2026-IE 420-Financial Engineering-Sections GO, UO
Question 3
pts
Under a gold-backed system, a major constraint on governments is that:
They can’t “print money” freely without corresponding gold reserves
They can print unlimited currency without consequence
They must always run a budget surplus
They must peg their currency to the euro
Correct answer
Question 4
pts
In Bretton Woods (as described), the U.S. committed to:
Allowing all exchange rates to float freely
Fixing USD to gold at $35 per ounce
Fixing USD to oil at $35 per barrel
Fixing USD to silver at $1 per ounce
Correct answer
Question 5
pts
In the Bretton Woods framework described, other major countries generally:
Fixed their currency to gold directly
Refused to hold USD reserves
Used only silver coins
Fixed their currency to USD
Correct answer
Question 6
pts
A “fiat currency” is best defined as:
A currency not physically backed by a commodity (like gold)
A currency backed by company stock
A currency backed 1:1 by gold in a vault
https://canvas.illinois.edu/courses/65661/quizzes/408041 2/13
Quiz 1 (reviewing 1/28's lecture)
Due Feb 11 at 5:30pm
Points 10
Questions 46
Time Limit None
Instructions
Questions to test key terms and concepts from the previous lectures.
Attempt History
Attempt Time Score
LATEST Attempt 1 75 minutes 10 out of 10
Score for this quiz: 10 out of 10
Submitted Feb 11 at 2:02am
This attempt took 75 minutes.
Correct answer
Question 1
pts
In the lecture, “currency” most directly refers to:
Local money typically issued by governments for transactions and saving
Only gold and other precious metals
A company’s shares traded on an exchange
Any asset that goes up in value over time
Correct answer
Question 2
pts
Which is a key feature of a gold-backed currency system?
Interest rates must be negative
The currency’s value is set by social media sentiment
Banks can lend only if they have 100% of deposits in cash
The currency has a fixed exchange rate to physical gold (or another metal)
Correct answer
https://canvas.illinois.edu/courses/65661/quizzes/408041 1/13
, 5/5/26, 12:54 AM Quiz 1 (reviewing 1/28's lecture): Spring 2026-IE 420-Financial Engineering-Sections GO, UO
Question 3
pts
Under a gold-backed system, a major constraint on governments is that:
They can’t “print money” freely without corresponding gold reserves
They can print unlimited currency without consequence
They must always run a budget surplus
They must peg their currency to the euro
Correct answer
Question 4
pts
In Bretton Woods (as described), the U.S. committed to:
Allowing all exchange rates to float freely
Fixing USD to gold at $35 per ounce
Fixing USD to oil at $35 per barrel
Fixing USD to silver at $1 per ounce
Correct answer
Question 5
pts
In the Bretton Woods framework described, other major countries generally:
Fixed their currency to gold directly
Refused to hold USD reserves
Used only silver coins
Fixed their currency to USD
Correct answer
Question 6
pts
A “fiat currency” is best defined as:
A currency not physically backed by a commodity (like gold)
A currency backed by company stock
A currency backed 1:1 by gold in a vault
https://canvas.illinois.edu/courses/65661/quizzes/408041 2/13
