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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 4: Blowout - The Commodities Bubble.

Multiple Choice Questions

1. According to Chapter 4, Goldman-Sachs was the dominant index cornering about how much of the speculation market?
(a) One-third.
(b) Two-thirds.
(c) Three-fourths.
(d) One-half.

2. Goldman-Sachs argued that investing in commodities futures would reduce risk and yield __________.
(a) T-bill returns.
(b) Equity-like returns.
(c) Speculative returns.
(d) Derivatives.

3. What refers to a financial market where participants can issue new debt, known as the Primary market, or buy and sell debt securities, known as the Secondary market, usually in the form of bonds?
(a) Stock market.
(b) Derivatives market.
(c) Speculative market.
(d) Bond market.

4. What are created when banks split their mortgage loan payments into three levels and sell them in separate packages?
(a) Incidentals.
(b) Collectives.
(c) Tranch blocks.
(d) Derivatives.

5. The Commodity Exchange Act was enacted in what year?
(a) 1942.
(b) 1936.
(c) 1958.
(d) 1916.

Short Answer Questions

1. What refers to the idea of a society in a repressive and controlled state, often under the guise of being Utopian?

2. The fundamental belief of what philosophy is that self-interest is a normal human state and interventionism by the government is unnatural and evil?

3. The Tea Party got its name from what CNBC economic analyst?

4. In 1991, Goldman-Sachs bought up a commodities trading company called ________.

5. The Commodity Exchange Act replaced what earlier act from 1922?

(see the answer key)

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