|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. Ronald Reagan was the thirty-third governor of what state?
2. What refers to the part of the economy which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state?
(a) Education system.
(b) Public sector.
(c) Stock market.
(d) Private sector.
3. Who appointed Alan Greenspan as the Federal Reserve chairman?
(a) Ronald Reagan.
(b) George H. Bush.
(c) George W. Bush.
(d) Bill Clinton.
4. When was Ayn Rand born?
5. When was Atlas Shrugged published?
Short Answer Questions
1. For what magazine was Matt Taibbi working as a reporter when he describes having listened to the acceptance speech of Sarah Palin in Chapter 1?
2. Eljon Williams and his wife were shocked when their mortgage went up over how much from one month to the next in Chapter 3?
3. From 1948 to 1953, Alan Greenspan worked as an economic analyst at what business and industry oriented think-tank in New York City?
4. When was The Fountainhead published?
5. 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?
Short Essay Questions
1. Describe the different tranches of subprime loans discussed in Chapter 3. What were the differences between the tranches?
2. What did Eljon Williams learn about the commission involved in his mortgage?
3. How does the author relate Alan Greenspan's methods with those of a casino?
4. How did the market for subprime loans change between 2002 and 2005?
5. How did Ayn Rand influence Alan Greenspan, and in effect, American finance?
6. Describe Alan Greenspan's childhood and education. Where did Greenspan study economics?
7. Where was Ayn Rand from? How is she described in Chapter 2?
8. What does Taibbi assert was at the root of the 2008 financial crisis?
9. Who was Eljon Williams and how did he become involved in a mortgage scam as described in Chapter 3?
10. What actions did Alan Greenspan take which led directly to the housing bubble bust?
This section contains 855 words
(approx. 3 pages at 300 words per page)