1) The housing bubble in the US:

		a. eventually burst
		b. was partially due to low interest rates during a period of economic expansion
		c. resulted in people buying houses as a financial investment to be sold rather than as a place to live
		d. all of the above

2) When the prices of bank assets tumble (such as mortgage backed securities):

		a it has no effect on a bank's net worth
		b. they must sell assets to maintain a bank's net worth
		c, the higher a bank's initial net worth, the fewer assets it would need to sell to remain profitable
		d. both (b) and (c)

3) Bank panics did not occur in the US during the Financial Crisis because:

a) the government provided FDIC insurance for checking and savings accounts up to $250,000

b) depositors did not think we were going into recession

c) depositors did not see other depositors withdrawing their funds from banks

d) none of the above