1. What economic group is hit the hardest by an inflation?
(a) Inflation damages only the very poor in a society.
(b) Only the very wealthiest people are hurt by inflation.
(c) Only the middle class is hurt by inflation.
(d) Inflation has been a problem for the rich and poor alike, although it hit the chronically poor harder than anyone.

2. What caused the economy to get into such a state that the government was compelled to bail out banks?
(a) The International Monetary Fund had become dangerously unstable.
(b) The US Congress failed to pass legislation that would have boosted the economy.
(c) The argument could be made that lax lending practices and overly speculative investments had forced the government to use tax dollars in the bailouts.
(d) The American people were taking out too many home loans.

3. The author made what sports analogy to describe the problems with the banking system?
(a) Using a golf analogy, the problems with the banking system were presented in a fairly understandable way.
(b) Using a baseball analogy, the problems with the banking system were presented in a fairly understandable way.
(c) Using a soccer analogy, the problems with the banking system were presented in a fairly understandable way.
(d) Using a football analogy, the problems with the banking system were presented in a fairly understandable way.

4. What major banks failed in 1972?
(a) In 1972, First Bank of Michigan and New York Bank both failed.
(b) In 1972, Bank of America and Citibank failed.
(c) Unity Bank fell in 1972, as did the Commonwealth Bank of Detroit.
(d) First Bank of California and Wells Fargo Bank failed in 1972.

5. What was the main argument in favor of nationalizing banks?
(a) The fundamental argument in favor of the nationalization was that the system had to be purged of risk-taking bank executives.
(b) The fundamental argument in favor of the nationalization was that such bailouts would be allowed only once.
(c) 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.
(d) The fundamental argument in favor of the nationalization was that a weak economy would recover more quickly.