View a FREE sample

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

Multiple Choice Questions

1. As Steve Eisman's team investigated in Chapter 4, they found patterns in the people and states that what?
(a) Had warmer climates.
(b) Were the most successful.
(c) Were more educated.
(d) Suffered the highest default rates.

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

3. What was Michael Lewis' first book?
(a) Digital Money.
(b) Trade or Die.
(c) Liar's Poker.
(d) Stock Junkies.

4. In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?
(a) Auto loans.
(b) Gold and silver.
(c) Subprime mortgages.
(d) Pork futures.

5. With whom did Michael Burry make his first credit default swap?
(a) Oppenheimer and Co.
(b) Cornwall Capital Management.
(c) Scion Capital.
(d) Deutsche Bank.

Short Answer Questions

1. What is the title of Chapter 4?

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

3. With how much capital did Charlie Ledley and his partner begin a hedge fund in Chapter 5?

4. In Chapter 5, Charlie Ledley and Jamie Mai continued to make risky investments until they had grown their investment company to how much?

5. Michael Burry worked as a resident in what field in Chapter 2?

Short Essay Questions

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

2. What led Steve Eisman to open his own hedge fund?

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

4. What obstacles did Cornwall Capital Management face as a beginning business?

5. How did Greg Lippmann go about finding investors in Chapter 3?

6. How did Charlie Ledley enter the bond market in Chapter 5?

7. What did Ledley and Mai discover about CDOs and CDSs in Chapter 5?

8. What led to mortgage companies extending loans to unreliable clients, as described in Chapter 1?

9. What patterns did Steve Eisman's team discover in mortgage trading in Chapter 4?

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

(see the answer keys)

This section contains 901 words (approx. 4 pages at 300 words per page) View a FREE sample