The Ultimate Savings and Loans Quiz

The Ultimate Savings and Loans Quiz
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About This Quiz

Savings and loan associations still exist, but have been tainted by the late 1980s S&L crisis. Today's savings and loans are similar to commercial banks. Knowing about the failures of U.S. financial institutions can help you be a wary investor.
Why do savings and loan associations have bad reputations?
Many failed.
Banking officials were dishonest.
both answers
During the 1980s and 1990s, hundreds of savings and loans failed. This great failure cost the government and individuals billions of dollars.

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How were Bill and Hillary Clinton involved in the Whitewater scandal?
The Clintons were involved in a real estate deal.
The Clintons testified during Whitewater hearings.
both answers
The Clintons had some business dealings with the Whitewater Development Corporation and were called to testify during the investigation of Whitewater.

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What was the original purpose of savings and loans?
grow communities
The purpose was to help grow communities. Started in England during the 18th century, the concept was for local investors to pool funds to help enable others to pay for building costs.
give away lumber
finance auto purchases

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During the 1830s there was a type financial institution similar to savings and loans. What was this institution called?
banks
brokerage houses
building and loan associations
Building and loan associations were similar to savings and loans.

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During the depression, what happened to building and loan associations?
prospered
were unpopular
failed
During the 1930s, many banking and loan associations failed.

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How do savings and loans differ from commercial banks?
S&L depositors own stock.
Usually the depositors in savings and loan associations also own stock, and if the savings and loan makes a profit so do the stock owner. Bank depositors do not own stock in the bank.
S&L depositors do not own stock.
Bank depositors own stock.

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What was the great weakness of savings and loans?
lowering interest rates
stagnant interest rates
rising interest rates
Rising interest rates took a toll on savings and loans.

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During the depression, what banking bill did Franklin D. Roosevelt sign?
1933 Emergency Banking Bill
FDR signed the 1933 Emergency Banking Bill.
Emergency Stabilization Act of 2008
Consumer Protection Bill of 2010

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What was the combined worth of the savings and loan failure?
$519 million
$5.19 billion
$519 billion
$519 billion was the combined worth of the failure.

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When he was prosecuted for criminal investment practices, which S&L was Charles Keating working for?
Whitewater Savings and Loan
Lincoln Savings and Loan Association
Charles Keating was head of the Lincoln Savings and Loan Association.
We Trust Savings and Loan Association

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Which presidential candidate was involved in the Keating Five?
John McCain
John McCain was involved in the Keating Five, he accepted campaign donations from Charles Keating.
Al Gore
Bob Dole

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Were the savings and loans insured for losses?
They were not insured.
They were insured by the Federal Deposit Insurance Corporation.
They were insured by the Federal Savings and Loan Insurance Corporation.
The savings and loans were insured by the Federal Savings and Loan Insurance Corporation.

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Do savings and loans still exist?
Savings and loans are in operation today.
Savings and loans operate like commercial banks.
Both answers are correct.
Today's savings and loans operate like commercial banks and are closely regulated and supervised.

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What was the Keating Five?
group of five senators
The Keating Five was a group of five senators who accepted campaign contributions from Charles Keating. Claims were made that the campaign donations had an impact on the senators' decisions regarding savings and loan association policies.
rock group
basketball superstars

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What was the purpose of deregulation?
allow savings and loans to make more profit
The purpose of deregulation was to allow savings and loans the opportunity to pursue other business ventures, so those profits would offset losses due to rising interest rates.
allow savings and loans to close
increase the insurance on accounts

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During the 1980s, what type of real estate ventures did many savings and loans invest in?
low-risk
high-risk
high-risk and high-cost
High-risk and high-cost real estate investments were popular with many savings and loans.

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Which tax reform act created incentives for real estate investors?
Depository Institutions Deregulation and Monetary Control Act of 1980
Tax Reform Act of 1981
The Tax Reform Act of 1981 created many incentives for real estate investors.
Emergency Banking Act of 1981

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Which act removed the restrictions on business practices of savings and loan associations?
Depository Institutions Deregulation and Monetary Control Act of 1980
The Depository Institutions Deregulation and Monetary Control Act of 1980 revoked the restrictions of the savings and loan associations.
Tax Reform Act of 1981
Emergency Banking Act of 1933

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When did savings and loans start to feel the effects of rising interest rates?
1960s
It was during the 1960s when rising interest rates started to create issues for savings and loan associations.
1970s
1980s

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Where did the bailout money for savings and loans come from?
other countries
social security fund
taxpayer money
The federal government used taxpayer money to bailout the savings and loans. The cost of the bailout was estimated to be $153 billion.

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You Got:
/20
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