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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 6-7.

Multiple Choice Questions

1. What does FINRA stand for?
(a) Financial Industry Regulatory Authority, Inc.
(b) Fiscal Imaginaton Repression Agency.
(c) Future Inverstment Reparations Act.
(d) Fiscal Investment Recovery Act.

2. In Chapter 7, Steve Eisman learned that the rating companies were working with the same information as who?
(a) The investors.
(b) The Chinese.
(c) The government.
(d) Himself.

3. How much money did Charlie Ledley and Jamie Mai make from their first major investment in a company with legal trouble in Chapter 5?
(a) Over $500,000.
(b) Over $5 million.
(c) Over $3 million.
(d) Over $1 million.

4. What is the name of the investment group Steve Eisman formed after quitting his job as a bond analyst?
(a) Scion Capital.
(b) Deutsche Bank.
(c) FrontPoint.
(d) Cornwall Capital Management.

5. Michael Burry could not bet against mortgage bonds in the same way he could other bonds because he could not short houses, only what?
(a) Commercial buildings.
(b) Construction workers.
(c) Government buildings.
(d) House builders.

Short Answer Questions

1. Who thought that if AIG stopped buying the bonds, the subprime mortgage bond market would collapse, making him a fortune in Chapter 3?

2. What led Michael Burry to leave his original profession and become a money manager?

3. Who offered Michael Burry bonds at $100 million a deal in Chapter 2?

4. On what date did the head of the International Monetary Fund warn that the world financial system was teetering on the "brink of systemic meltdown"?

5. The alterations to bond ratings made by mortgage lenders in Chapter 4 led to such things as lending how much money to a migrant worker who made only $14,000 a year?

(see the answer key)

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