|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What spins out of control at Salomon Brothers in 1987?
(a) New hirings.
(c) Manager's demans.
(d) Trader's risks.
2. To create a CMO, hundreds of millions of dollars in ordinary mortgage bonds are placed in a _____.
(b) Retirement account.
(c) Pension fund.
(d) Certificate of Deposit.
3. Mark Smith enters the mortgage department in 1985 and is considered a _____ by the author.
(d) Dark horse.
4. A carnival performer who bites the heads off live chickens and snakes is definition of a _____.
5. Where does Dash see a painting that he wants?
(b) The Metropolitan Museum.
6. What is the name of the Federal Housing Administration's approval to trade in whole loans?
(a) An eagle.
(b) A put.
(c) A bogey.
(d) A birdie.
7. What is another name for a call option?
(a) A stay/
(b) A warrant.
(c) A shared equity.
(d) A glue bond.
8. What is the word that means trading riskily for profit?
(d) Selling short.
9. What ritual of the London office is fairly renowned in New York?
(a) Going to France on the weekends.
(b) Two-hour lunches.
(c) Working late hours.
(d) Wine at work.
10. In New York, when a trader is starting out, the excitement of being part of the action comes at the price _____.
(b) A few million dollars.
(c) One's sanity.
(d) One's soul.
11. CMO's are divided into slices, or _____.
12. Who writes the book, On War?
13. What is it called when a trader offloads bonds down a customer's throat for the company's benefit?
14. Mike Milkin of Drexel Burnham is the guru of _____.
(a) Municipal bonds.
(b) Junk bonds.
(c) Mortgage bonds.
(d) Government bonds.
15. What is the name of the Salomon Brothers when it becomes a corporation?
(a) Salomon Brothers Incorporated.
(b) First Salomon Incorporated.
(c) Salomon Shearson Incorporated.
(d) Phibro Salomon Incorporated.
Short Answer Questions
1. Which company becomes Salomon Brothers' biggest competitor soon after mortgage trading becomes a viable investment entity?
2. Who are the biggest shoppers for mortgage products?
3. What is the name of the standard of one hundred cents on the dollar?
4. Lewis characterizes the sprinting rabbit statue at the new London office as a _____.
5. What is jargon for a gamble that is sure to succeed?
This section contains 393 words
(approx. 2 pages at 300 words per page)