1. How was some property converted for home ownership during the 1980s?
(a) In some towns, student housing was converted to property that was sold to homeowners.
(b) Less expensive condominiums that often times had been rental apartments became another way. Rent-to-buy deals popped into the market.
(c) Trailer parks were developed as suburban subdivisions.
(d) Some storefront small business buildings were converted to property that was sold for private homes.

2. How does a currency drain occur within the banking system?
(a) A currency drain occurs when foreign investors withdrawn their funds from US banks.
(b) A currency drain occurs when the government devalues the currency system.
(c) A currency drain happened when many depositors wrote checks, and the receivers of the checks cashed them at another bank, thereby requiring more money from the first bank than it had on hand.
(d) A currency drain occurs when the Federal government demands repayment of loans.

3. How did poor regulation contribute to the Savings and Loan crisis of the 1980s?
(a) Government regulations allowed S&Ls to file individual bankruptcies.
(b) Government regulations allowed S&Ls to claim assets that had no value, such as community good will toward them, and encouraged bad lending practices to increase home ownership.
(c) Government regulations allowed S&Ls did not require them to repay their debtors in full.
(d) Government regulations allowed S&Ls to hoard money to increase their cash flow.

4. What was the main argument in favor of nationalizing banks?
(a) The fundamental argument in favor of the nationalization was that such bailouts would be allowed only once.
(b) The fundamental argument in favor of the nationalization was that the system was so broken that it simply could not be regulated enough to work without eventually nationalizing all banking and industry.
(c) The fundamental argument in favor of the nationalization was that the system had to be purged of risk-taking bank executives.
(d) The fundamental argument in favor of the nationalization was that a weak economy would recover more quickly.

5. How did many people feel about those who went too far into debt?
(a) Many felt that the nation had been taught to rely too much on credit.
(b) Many argued that people who went too far into debt had done this on their own--nobody had forced people into the mortgages or credit cards.
(c) Many argued that those in deep debt should be forgiven much of their dept because of the reclining economy.
(d) Many felt that people who were in debt had been encouraged to do so by political figures.