How to determine if this fault is normal, sinistral?
So, the basic geological history is given. From this, the units named Bed 1, were deposited, then tilted. Bed 2 was deposited and tilted (along with Bed 1). The entire sequence was then faulted.

So, how can we tell what the fault did?

First of all, notice that there was movement of the eastern block to the north-west. This can be deduced because all the contacts have been shifted in that direction.

So, let us undo that shift to the north-west:



Now, we can see that the contact between Bed 2 and Bed 1 does not line up. This means that we must have had movement up or down as well. The only way to work this one out is by knowing which way the contact dips. If it dips northwards, then the eastern block moved up. If it dipped south, then it would overlie all the sediments to the south. This suggests that Bed 2 dips northwards.

Upward movement of the eastern block would then reveal Bed 1 when the area was eroded.

My conclusion therefore, is that the fault moved the eastern block north-west and up, relative to the western block.

Did I miss anything? It is late, which I will claim as an excuse. If my logic is unclear, let me know and I can try add more pictures, or video of me waving hands about, which is my usual approach.