View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Section I. What Creature Is This? Chapter 4 Home Sweet Loan.

Multiple Choice Questions

1. What impacted housing prices in the Midwest states?
(a) The Rust Belt area of the country was not considered a desirable place in which to live.
(b) House prices declined because homeowners due to the region's lack of good school systems.
(c) The depression in the rust belt that included northern Midwestern states such as Michigan, Ohio and Pennsylvania reduced the number of potential home buyers which in turn depressed housing prices in those areas.
(d) Housing prices declined because of poor construction standards in the area.

2. What did the Federal Reserve System help banks to do?
(a) The Federal Reserve helped banks keep a healthy cash flow.
(b) The Federal Reserve helped banks to stay in operation.
(c) The Federal Reserve helped banks keep individuals, businesses and entire countries perpetually in debt and working mostly for the banks.
(d) The Federal Reserve helped banks by making special laws for them.

3. Since its inception in 1910, the Federal Reserve had made what decisions about bank bailouts?
(a) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts only if they could prove they had complied with all regulations.
(b) Since its inception in 1910, the Federal Reserve had decided that medium-sized banks would get the majority of bailouts.
(c) Since its inception in 1910, the Federal Reserve had decided that large banks would be the only banks to get bailouts.
(d) Since its inception in 1910, the Federal Reserve had decided that large banks would get bailouts, medium-sized banks would get some bailouts, and small banks would be left to fail or be acquired by larger banks.

4. What has caused the economy's boom-bust cycle?
(a) The economy's boom-bust cycle is caused by the instability of the International Monetary Fund.
(b) The Federal Reserve's advertised purpose was to stabilize the economy, but depressions and recessions have resulted instead in a boom-bust cycle.
(c) The economy's boom-bust cycle is caused from trade deficits.
(d) The economy's boom-bust cycle is caused from people hoarding cash.

5. After analysis, what was the real nature of the S&L system?
(a) The S&L system turned out to actually be a scam.
(b) The S&L system turned out to actually be criminal.
(c) The S&L system turned out to actually be operated by international interests.
(d) The S&L system turned out to actually be a cartel within a cartel.

Short Answer Questions

1. What happened when Congress stepped in during the S&L crisis?

2. What resulted from the 1970 Penn Central Railroad bailout?

3. How open to questioning were the original participants of the 1910 meeting?

4. The banking system before the Federal Reserve System allowed banks to lend out what percentage of money against one percent in deposits.

5. What action was taken by the Federal Reserve during the 1980s S&L crisis?

(see the answer key)

This section contains 839 words (approx. 3 pages at 300 words per page) View a FREE sample