Question 1
Traditionally, banks issued loans cautiously, demanding detailed documentation to account for one's ability to pay back the loan.
Indicate whether this statement is true or false.
Question 2
Flipping referred to the method by which people
A) sold houses and quickly sold them at a loss.
B) bought houses and quickly sold them at a profit.
C) sold houses to pay off mortgages to the bank.
D) bought houses and sold them at a loss.
Question 3
Sliced and diced referred to the method in which banks divided
A) mortgages into smaller shares.
B) interest rates into smaller rates.
C) loan payments into smaller shares.
D) profits into smaller shares.
Question 4
The massive flood surge following the breach of New Orleans' levees further weakened the city by
A) washing away bridges.
B) flooding the city's drainage systems.
C) cutting the city off from federal government responses to deliver aid to New Orleans.
D) flooding generators in the hospitals caring for people who could not evacuate the city.
Question 5
Many New Orleans' residents, who were unable to evacuate the city, took refuge at
A) Tulane University.
B) the Superdome.
C) the Convention Center.
D) the University of New Orleans.
Question 6
FEMA's failure to respond with relief for victims of Hurricane Katrina was in large measure due to
A) the lack of available funds needed to buy supplies and transport them to the people affected by Hurricane Katrina.
B) the hesitation of the federal government to declare a state of national emergency in the affected areas.
C) administrative leaders having no experience in dealing with disasters of any kind on a massive scale.
D) the lack of cooperation between state and federal government.
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