1. Why did banks make risky loans?
(a) The US Congress passed legislation that required banks to make ten percent of their loans to risky borrowers.
(b) Banks did not thoroughly check out the risk factor of some borrowers.
(c) The banks had incentive in terms of high profits for granting mortgages to home buyers who would not be able to pay the loans off, but who might be able to make interest payments.
(d) Banks are required by the Federal Reserve to make a certain percentage of risky loans.

2. How open to questioning were the original participants of the 1910 meeting?
(a) The participants at the 1910 meeting would only agree to talk about the establishment of the Federal Reserve with the New York Times.
(b) None of the participants at the 1910 meeting talked about the establishment of the Federal Reserve in interviews conducted years later.
(c) Only some of the participants at the 1910 meeting talked about the establishment of the Federal Reserve in interviews conducted years later.
(d) Most of the participants at the 1910 meeting openly talked about the establishment of the Federal Reserve in interviews conducted years later.

3. What risky loan activities have banks participated in?
(a) Banks loaned depositors' money to foreign governments who refused to repay the loans.
(b) Banks loaned depositors' money out to poor people during the Great Depression.
(c) Banks loaned depositors' money out to risky debtors who would likely not be able to pay the loans off.
(d) Banks loaned depositors' money out to to the US government in times of economic downturns.

4. Why has bank fraud never been eliminated?
(a) The Federal Reserve was influenced by lobbyists who advocated fraudulent regulations.
(b) The Federal Reserve was controlled by outside political interests that fostered fraud.
(c) Financial experts were taught that the way banking worked in the US was the only way it could work, and so the fraud kept on going.
(d) The Federal Reserve tried to institute European standards which led to the perpetuation of fraud.

5. If the debtors stopped paying banks altogether, what action would the Federal Reserve System take?
(a) If the debtors stopped paying altogether, the Federal Reserve System filed suit in Federal Court.
(b) If the debtors stopped paying altogether, the Federal Reserve System gave the banks more money.
(c) If the debtors stopped paying altogether, the Federal Reserve System refused to back the bad debt.
(d) If the debtors stopped paying altogether, the Federal Reserve System fined them.