1. Why did banks ask for interest-only payments?
(a) The bank would arrange for interest payments only to keep the profits coming in.
(b) The bank would arrange for interest payments only so that their customers could keep a good credit rating>
(c) The bank would arrange for interest payments only to keep the loan viable.
(d) The bank would arrange for interest payments only to take the burden off the customer.

2. Why did banks offer debtors more credit?
(a) Banks offered more credit to debtors to so they could increase their purchasing power.
(b) Banks offered more credit to debtors to help them purchase homes.
(c) Banks offered more credit to debtors to increase interest payments to the them.
(d) Banks offered more credit to debtors to help improve their credit rating.

3. What was the impact of the creation of new money on the currency?
(a) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was increasing the value of the currency.
(b) People considered the creation of new money inflationary as the prices of goods and services rose but had no impact on the currency.
(c) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality it was strengthening the currency in the world market.
(d) People considered the creation of new money inflationary as the prices of goods and services rose, but in reality this was a devaluing of the currency.

4. What organization ensures the nationalization of banks?
(a) As long as the Congressional Banking Committee existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(b) As long as the International Monetary Fund existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(c) As long as the Federal Reserve System existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.
(d) As long as the FDIC existed, it would continue nationalizing banks and perhaps other industries as they fell into financial difficulties.

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