The Ultimate Savings and Loans Quiz
by Staff
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

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

What was the original purpose of savings and loans?

  • grow communities
  • give away lumber
  • finance auto purchases

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

During the depression, what happened to building and loan associations?

  • prospered
  • were unpopular
  • failed

How do savings and loans differ from commercial banks?

  • S&L depositors own stock.
  • S&L depositors do not own stock.
  • Bank depositors own stock.

What was the great weakness of savings and loans?

  • lowering interest rates
  • stagnant interest rates
  • rising interest rates

During the depression, what banking bill did Franklin D. Roosevelt sign?

  • 1933 Emergency Banking Bill
  • Emergency Stabilization Act of 2008
  • Consumer Protection Bill of 2010

What was the combined worth of the savings and loan failure?

  • $519 million
  • $5.19 billion
  • $519 billion

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
  • We Trust Savings and Loan Association

Which presidential candidate was involved in the Keating Five?

  • John McCain
  • Al Gore
  • Bob Dole

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.

Do savings and loans still exist?

  • Savings and loans are in operation today.
  • Savings and loans operate like commercial banks.
  • Both answers are correct.

What was the Keating Five?

  • group of five senators
  • rock group
  • basketball superstars

What was the purpose of deregulation?

  • allow savings and loans to make more profit
  • allow savings and loans to close
  • increase the insurance on accounts

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

Which tax reform act created incentives for real estate investors?

  • Depository Institutions Deregulation and Monetary Control Act of 1980
  • Tax Reform Act of 1981
  • Emergency Banking Act of 1981

Which act removed the restrictions on business practices of savings and loan associations?

  • Depository Institutions Deregulation and Monetary Control Act of 1980
  • Tax Reform Act of 1981
  • Emergency Banking Act of 1933

When did savings and loans start to feel the effects of rising interest rates?

  • 1960s
  • 1970s
  • 1980s

Where did the bailout money for savings and loans come from?

  • other countries
  • social security fund
  • taxpayer money