|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What does NINJA stand for in the mortgage industry?
2. What refers to an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities?
3. What was the name of Ayn Rand's circle of intellectuals which was dedicated to relentless self-interest?
4. What are created when banks split their mortgage loan payments into three levels and sell them in separate packages?
5. By 2005, there was over how much money in subprime loans approved?
Short Essay Questions
1. Describe the different tranches of subprime loans discussed in Chapter 3. What were the differences between the tranches?
2. How did the market for subprime loans change between 2002 and 2005?
3. How does the author relate Alan Greenspan's methods with those of a casino?
4. Who was Joe Cassano? What authority did he achieve?
5. How did the public and private sectors evolve and change during Alan Greenspan's reign of the Federal Reserve, as described in Chapter 2?
6. How did Greenspan's views of American politics change over time?
7. As described in Chapter 2, what was Alan Greenspan's focus in controlling the United States economy?
8. How are "no doc" loans described in Chapter 3? How were the borrowers scammed in this system?
9. What campaign strategy of Richard Nixon's does Taibbi describe in Chapter 1?
10. What process did banks undertake in order to sells risky loans, as described in Chapter 3?
Write an essay for ONE of the following topics:
Essay Topic 1
Compare and contrast the strategies of the Nixon campaign with those of the Tea Party. How did Palin's approach relate to Nixon's?
Essay Topic 2
Define and analyze securitization, sub prime loans and derivatives. How and when did these terms enter the American financial world?
Essay Topic 3
Discuss the role of the Federal Reserve in American finance and the approach that Alan Greenspan had in controlling the American economy. What are the different ways in which the Fed can monitor the economy?
This section contains 916 words
(approx. 4 pages at 300 words per page)