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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 4-5.

Multiple Choice Questions

1. For what company did Michael Lewis begin working after earning his Masters degree in Economics?
(a) Oppenheimer and Co.
(b) Aames Financial.
(c) Citigroup.
(d) Salomon Brothers.

2. During their research, Ledley and Mai discovered that many CDOs were comprised of triple-B rated mortgages being sold as what?
(a) Double-C.
(b) Double-B.
(c) Triple-A.
(d) Triple-C.

3. With whose assistance did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?
(a) Vincent Daniel's.
(b) Greg Lippmann's.
(c) Michael Lewis'.
(d) Meredith Whitney's.

4. In finance, what occurs when a debtor has not met his or her legal obligations according to the debt contract?
(a) Default.
(b) Forclosure.
(c) Refinancing.
(d) Repossesion.

5. With Ben Hockett's help, Cornwall received what contract?
(a) JRCA.
(b) BYR.
(c) ISDA.
(d) CDO.

Short Answer Questions

1. In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?

2. What are bonds that are made up of mortgages sold to consumers by banks?

3. In Michael Burry's first credit default swap, what was the rate of each bond purchased?

4. Who from Deutsche Bank asked if they could buy the swaps back from Michael Burry in Chapter 2?

5. Steve Eisman got his job with Oppenheimer and Co. through whom?

(see the answer key)

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