Is thayer's quest just like a multiple choice test you put more quarters in every time you choose the wrong answer?

I have seen Let's plays for Thayers quest and I do not understand the control mechanism the player uses

I do not think I ever watched a whole let's play for it and never played the game

Also is there more than one version of it

Also is it similar to an old animated cartoon about the Bible in terms of graphic style? If so which one?