The savings and loan crisis in the 1980s was a result of

a) the cost of the military
b) the federal budget surplus
c) the number of new taxes
d) the number of failing banks

The correct answer is D) The number of failing banks. The answer can easily be obtained through the process of elimination. The cost of the military would have little to do with the Savings and Loan sector. A federal budget surplus would not have any effect on the Savings and Loan crisis, as a surplus would indicate there was extra money. Clearly, the word "crisis" would point to a reduction in funding, not a surplus. New taxes would provide additional income to the government, so again, this would create more money and would not contribute to a crisis situation. Answer D would make the most sense, since banks are directly related to Savings and Loan operations. The failure of many banks would absolutely contribute to the Savings and Loan Crisis.

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