|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What are created when banks split their mortgage loan payments into three levels and sell them in separate packages?
(c) Tranch blocks.
2. Of what political party was Ronald Reagan a member?
(b) Green Party.
(c) Tea Party.
3. What refers to a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation?
(a) Subsidized market.
(b) Ponzi scheme.
(c) Derivitaves market.
(d) Unsubsidized loans.
4. The fundamental belief of what philosophy is that self-interest is a normal human state and interventionism by the government is unnatural and evil?
5. From 1948 to 1953, Alan Greenspan worked as an economic analyst at what business and industry oriented think-tank in New York City?
(a) The Federal Reserve.
(b) The Republican Commission for Wealth.
(c) The Democratic Board of Industry.
(d) The National Industrial Conference Board.
6. The Tea Party got its name from what CNBC economic analyst?
(a) John Anderson.
(b) Ted Coppell.
(c) Rick Santelli.
(d) Anderson Cooper.
7. What do T-Bills refer to?
(a) Tendered bills.
(b) Tranche bills.
(c) Treasury bills.
(d) Trade bills.
8. In Chapter 3, what fee did companies that would attach a borrower's name to the credit score of another person who was more credit worthy charge?
9. Who is the protagonist of Atlas Shrugged?
(a) Michael Williams.
(b) Dagny Taggart.
(c) James Edwards.
(d) Howard Roark.
10. Where are the headquarters of Deutsche Bank?
(a) Amsterdam, Netherlands.
(b) Oslo, Norway.
(c) Frankfurt, Germany.
(d) Bern, Switzerland.
11. What does AIG stand for?
(a) Atlanta International Group.
(b) American International Group.
(c) American Industrial Group.
(d) American Independent Group.
12. In 2002, less than how much worth of subprime loans was approved?
(a) $1 billion.
(b) $200 billion.
(c) $100 billion.
(d) $300 million.
13. What refers to a public entity for the trading of company stock and derivatives at an agreed price?
(a) Stock market.
(b) Bond market.
(c) Capital market.
(d) Treasury market.
14. According to the author, many loans were _____ meaning there was no documentation that confirmed their qualifications for the loans.
(a) "No doc."
(c) "On spec."
(d) "No trans."
15. Who appointed Alan Greenspan as the Federal Reserve chairman?
(a) George H. Bush.
(b) Ronald Reagan.
(c) George W. Bush.
(d) Bill Clinton.
Short Answer Questions
1. In finance, what occurs whenever the loan payment for any period is less than the interest charged over that period so that the outstanding balance of the loan increases?
2. Before declaring bankruptcy, Lehman Brothers Holdings Inc. was ranked as the _________ largest investment bank in the United States.
3. The protagonist of The Fountainhead is in what profession?
4. Eljon Williams contacted what firm to help him get a home loan with a fixed mortgage?
5. T-Bills mature in what time?
This section contains 450 words
(approx. 2 pages at 300 words per page)