|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Lewis characterizes the sprinting rabbit statue at the new London office as a _____.
(a) Caveat emptor.
(b) Frivolous trinket.
(c) Non sequitur.
(d) Reminder to work hard.
2. Ranieri describes Tom Strauss as _____.
(a) A clown.
(b) A boob.
(c) A snake.
(d) A rabid dog.
3. Investment banking in America is a long-standing _____.
4. The Salomon Brothers expense account is used as a _____ compensation system.
(b) Second rate.
5. Michael Milken invents the _____.
(b) Municipal bond.
(c) Junk bond.
(d) Mortgage Bond.
6. What is the chief occupational hazard of the trading floor?
(a) Loss of concentration.
(c) Hearing loss.
(d) Carpal tunnel.
7. According to one mortgage trader, it is an accepted fact that mortgage traders have _____.
(a) No consciences.
(b) Death wishes.
(c) Fishy eyes.
(d) Iron balls.
8. CMO's are divided into slices, or _____.
9. According to the author, even knowledgeable thrift presidents feel they face a choice between rape and _____ when dealing with mortgage traders.
(b) Long-term gains.
(d) Slow suicide.
10. What is the name given to the junk bond seminar that Michael Milken speaks at every year in Beverly Hills?
(a) The Golden Parachute.
(b) TheMoney Masquerade.
(c) The Junker's Ball.
(d) The Predator's Ball.
11. What is the word that means trading riskily for profit?
(a) Selling short.
12. Ranieri says Bill Voute always has a _____.
(a) Political agenda.
(b) Sportscar image.
(c) Biting wit.
(d) Need to pick at people.
13. A carnival performer who bites the heads off live chickens and snakes is definition of a _____.
14. Mike Milkin of Drexel Burnham is the guru of _____.
(a) Government bonds.
(b) Mortgage bonds.
(c) Municipal bonds.
(d) Junk bonds.
15. What fund goes from zero investment in the mortgage market in 1983 to thirty billion dollars worth of CMOs in 1986?
(a) The Fannie Mae fund.
(b) The Freddie Mac fund.
(c) The American pension fund.
(d) The U.S. treasury bill fund.
Short Answer Questions
1. What is Latin for "buyer beware"?
2. Ranieri is the guru of the _____ industry.
3. Mark Smith enters the mortgage department in 1985 and is considered a _____ by the author.
4. The ____ outlook of traders enables traders to exploit the weakness of their customers with virtual impunity.
5. What is another name for an individual home loan?
This section contains 379 words
(approx. 2 pages at 300 words per page)