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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What is a legal document that institutions and businesses use to describe the securities they are offering for participants and buyers?
(a) Contract.
(b) Prospectus.
(c) Syllabus.
(d) Terms of Service.

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

3. Gene Park discovered that the CDSs being sold by his company contained more what than anyone knew?
(a) Precious metals.
(b) Subprime mortgage bonds.
(c) Grain futures.
(d) Car loans.

4. Where did Michael Lewis earn his Masters degree in Economics?
(a) The Paris School of Economics.
(b) The New York School of Economics.
(c) The Chicago School of Economics.
(d) The London School of Economics.

5. In 2007, Meredith Whitney announced that what company had so mismanaged its affairs that it would slash its dividend or crash?
(a) Salomon Brothers.
(b) The Fitch Group.
(c) Citigroup.
(d) Gotham Capital.

6. What did Michael Burry study in college?
(a) History.
(b) Engineering.
(c) Medicine.
(d) Law.

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

8. Who from Deutsche Bank asked if they could buy the swaps back from Michael Burry in Chapter 2?
(a) Greg Lippman.
(b) Michael Lewis.
(c) Euguene Xu.
(d) Meredith Whitney.

9. What is a global financial service company with its headquarters in Frankfurt, Germany?
(a) The Fitch Group.
(b) Deutsche Bank.
(c) Morgan Stanley.
(d) Oppenheimer and Co.

10. Who thought that if AIG stopped buying the bonds, the subprime mortgage bond market would collapse, making him a fortune in Chapter 3?
(a) Greg Lippman.
(b) Michael Lewis.
(c) Euguene Xu.
(d) Meredith Whitney.

11. Who agreed to a $5 million dollar deal with Michael Burry in Chapter 2?
(a) Bank of America.
(b) Scion Capital
(c) Goldman Sachs.
(d) Cornwall Capital Management.

12. What mortgage lender did an Oppenheimer banker obtain information on from Steve Eisman in Chapter 1?
(a) Aames Financial.
(b) Bear Stearns.
(c) Gotham Capital.
(d) Citigroup.

13. An investment corporation needs a contract through what in order to trade in securities that are traditionally only bought and sold between large investing bodies?
(a) ISDA.
(b) IMDB.
(c) COMA.
(d) USDA.

14. With Ben Hockett's help, Cornwall received a contract which allowed them to buy what?
(a) CDOs.
(b) CDSs.
(c) FICOs.
(d) ISDAs.

15. When was Michael Lewis' first book published?
(a) 1979.
(b) 1989.
(c) 1985.
(d) 1983.

Short Answer Questions

1. With whose assistance did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?

2. When did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?

3. What is the title of Chapter 4?

4. How old was Charlie Ledley when he moved to California to create a hedge fund?

5. After Eisman's published report, there were no more public subprime mortgage lenders by what year, as described in Chapter 1?

(see the answer keys)

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