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

Multiple Choice Questions

1. In Michael Burry's first credit default swap, what was the rate of each bond purchased?
(a) $10 million.
(b) $7 million.
(c) $3 million.
(d) $1 million.

2. In criminal law, what is an intentional deception made for personal gain or to damage another individual?
(a) Contempt.
(b) Heresy.
(c) Embezzlement.
(d) Fraud.

3. For what company did Ben Hockett work when he met Jamie Mai?
(a) AIG FP.
(b) Oppenheimer and Co.
(c) Standard & Poor's.
(d) Deutsche Bank.

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

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

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

7. How old was Charlie Ledley when he moved to California to create a hedge fund?
(a) 18.
(b) 21.
(c) 27.
(d) 30.

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

9. The sale of CDSs grew AIG FP so quickly that it provided what percent of AIG's profits in Chapter 3?
(a) 25.
(b) 15.
(c) 20.
(d) 35.

10. At what age was Michael Lewis when he was shocked that Wall Street would allow him to buy and sell stocks, as described in the Prologue?
(a) 18.
(b) 15.
(c) 17.
(d) 24.

11. Who offered Michael Burry bonds at $100 million a deal in Chapter 2?
(a) Bank of America.
(b) Deutsche Bank.
(c) Oppenheimer and Co.
(d) Goldman Sachs.

12. 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 $3 million.
(b) Over $1 million.
(c) Over $500,000.
(d) Over $5 million.

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

14. 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) COMA.
(b) IMDB.
(c) USDA.
(d) ISDA.

15. In what year did Steve Eisman stop working as an analyst and start his own hedge fund?
(a) 2004.
(b) 1997.
(c) 1992.
(d) 1988.

Short Answer Questions

1. With whom did Michael Burry make his first credit default swap?

2. Meredith Whitney was an analyst of financial firms for what company in 2007?

3. What is the title of Chapter 5?

4. What is the title of Chapter 4?

5. What was Michael Lewis' first book?

(see the answer keys)

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