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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

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

2. When was Michael Lewis born?
(a) 1956.
(b) 1960.
(c) 1957.
(d) 1963.

3. After Eisman's published report, there were no more public subprime mortgage lenders by what year, as described in Chapter 1?
(a) 2002.
(b) 2007.
(c) 2006.
(d) 2004.

4. Who was Gene Park's boss in Chapter 4?
(a) Amos Robinson.
(b) Joe Cassano.
(c) John Weatherfield.
(d) Theodore Williams.

5. 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.

Short Answer Questions

1. Gene Park worked for what company in Chapter 4?

2. Gene Park worked in offices where in Chapter 4?

3. Michael Burry could not bet against mortgage bonds in the same way he could other bonds because he could not short houses, only what?

4. What had Michael Burry's father warned him to stay away from in Chapter 2?

5. Through the use of what, was Michael Burry guaranteed to only lose only the amount of the premium payments in Chapter 2?

Short Essay Questions

1. Who was the only person at AIG FP to investigate the company's CDSs in Chapter 4? What did he discover?

2. What important individuals and concepts are introduced in Chapter 1?

3. How are tranches differentiated in mortgage bonds?

4. What did Steve Eisman discover about Household Finance Corporation in Chapter 1?

5. How did Charlie Ledley's first investment pay out? What was the company's worth?

6. With whom did Charley Ledley work in New York? What individual did he meet from Berkeley, California in Chapter 5?

7. What report did Steve Eisman publish in 1997? Who assisted him?

8. What was AIG FP's role in the stock market crash, as described in Chapter 3?

9. What drew Mike Burry to an interest in CDSs?

10. What "expert" did Greg Lippmann bring to speak with Steve Eisman in Chapter 3? Why?

(see the answer keys)

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