The Big Short: Inside the Doomsday Machine Test | Mid-Book Test - Easy

Michael Lewis (author)
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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Who agreed to a $5 million dollar deal with Michael Burry in Chapter 2?
(a) Scion Capital
(b) Bank of America.
(c) Cornwall Capital Management.
(d) Goldman Sachs.

2. What companies approached Michael Burry and provided him with capital to begin his new company?
(a) Gotham Capital and White Mountains.
(b) FrontPoint and Oppenheimer and Co.
(c) Oppenheimer and Co. and Deutsche Bank.
(d) Deutsche Bank and Standard & Poor's.

3. What is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds?
(a) Cornwall Capital Management.
(b) Standard & Poor's.
(c) Scion Capital.
(d) Deutsche Bank.

4. Gene Park worked in offices where in Chapter 4?
(a) Virginia.
(b) Maine.
(c) Rhode Island.
(d) Connecticut.

5. What Chinese national who came in second in a math competition in China accompanied Greg Lippmann in Chapter 3?
(a) Michael Oher.
(b) Euguene Xu.
(c) Meredith Whitney.
(d) Steve Eisman.

6. What is the name of the investment group begun by Charlie Ledley and his partner in Chapter 5?
(a) FrontPoint.
(b) Scion Capital.
(c) Capital One Financial.
(d) Cornwall Capital Management.

7. In Chapter 5, Charlie Ledley and Jamie Mai continued to make risky investments until they had grown their investment company to how much?
(a) $75 million.
(b) $30 million.
(c) $200 million.
(d) $10 million.

8. Where did Michael Lewis earn his Masters degree in Economics?
(a) The Chicago School of Economics.
(b) The New York School of Economics.
(c) The Paris School of Economics.
(d) The London School of Economics.

9. In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?
(a) Auto loans.
(b) Gold and silver.
(c) Pork futures.
(d) Subprime mortgages.

10. How much money did Charlie Ledley and Jamie Mai make from their first major investment in a company with legal trouble in Chapter 5?
(a) Over $1 million.
(b) Over $3 million.
(c) Over $500,000.
(d) Over $5 million.

11. What are divisions of mortgage bonds in which the mortgage bonds are divided into pieces?
(a) Collateral debt obligation.
(b) Credit default swap.
(c) Tranches.
(d) FICO Scores.

12. What is a collection of one hundred different mortgage bonds, usually the riskiest that are combined to create a new group of bonds that could take the low rated bonds and reclassify them at a higher rate?
(a) Credit default swap.
(b) FICO Scores.
(c) Tranches.
(d) Collateral debt obligation.

13. When was Michael Lewis born?
(a) 1963.
(b) 1960.
(c) 1957.
(d) 1956.

14. What does AIG FP stand for?
(a) American Investment Group Financial Portfolios.
(b) American International Group Fiscal Products.
(c) American Investment Group Financial Portfolios.
(d) American International Group Financial Products.

15. For what company did Ben Hockett work when he met Jamie Mai?
(a) Deutsche Bank.
(b) Oppenheimer and Co.
(c) Standard & Poor's.
(d) AIG FP.

Short Answer Questions

1. In Michael Burry's first credit default swap, what was the rate of each bond purchased?

2. What is a global financial service company with its headquarters in Frankfurt, Germany?

3. Where did Michael Burry share his thoughts on investing while learning what he could from others in Chapter 2?

4. An investment corporation needs a contract through what in order to trade in securities that are traditionally only bought and sold between large investing bodies?

5. What does CDS stand for?

(see the answer keys)

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