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

2. 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 in reality this was a devaluing of 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 had no impact on the currency.

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

4. The banking system before the Federal Reserve System allowed banks to lend out what percentage of money against one percent in deposits.
(a) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to ninety-nine percent loaned out with only one percent in deposits.
(b) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to fithy percent loaned out with only one percent in deposits.
(c) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to twenty percent loaned out with only one percent in deposits.
(d) The banking system before the Federal Reserve System allowed banks to lend out more money than they held in deposits, up to sixty percent loaned out with only one percent in deposits.

5. What resulted after the first electronic run on banks in 1983?
(a) The first electronic run on banks happened in 1983, leading to a massive bailout in the $6 billion range.
(b) The first electronic run on banks happened in 1983, leading to a hoarding of cash.
(c) The first electronic run on banks happened in 1983, leading to a collapse of the economy.
(d) The first electronic run on banks happened in 1983, leading to one trillion dollars being added to the deficit.