The Big Short: Inside the Doomsday Machine Test | Final Test - Medium

Michael Lewis (author)
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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What does the SEC refer to?
(a) Special Experts Conglomerate.
(b) Sellers and Engineers Committee.
(c) Securities and Exchange Commission.
(d) Speculators and Experts Council.

2. Who is an American former stockbroker, investment adviser, non-executive chairman of the NASDAQ stock market, and the admitted operator of what has been described as the largest Ponzi scheme in history?
(a) Greg Lippmann.
(b) Charlie Ledley.
(c) Bernard Madoff.
(d) Lewis Ranieri.

3. The first night of the conference in Chapter 6, Steve Eisman found himself attending a dinner thrown by what company?
(a) Moody's.
(b) Wachovia.
(c) Oppenheimer and Co.
(d) Deutsche Bank.

4. In his Epilogue, what does the author amount to billion dollar gifts paid for by the American people?
(a) Tax revenues.
(b) The national parks.
(c) The bond market.
(d) Government bailouts.

5. How much did Cornwall Capital Management make from selling its CDOs in Chapter 9?
(a) Over $450 million.
(b) Over $240 million.
(c) Over $120 million.
(d) Over $80 million.

Short Answer Questions

1. What is the title of the book's Epilogue?

2. What company fell after Bear Sterns in Chapter 10?

3. The contract with which one of Scion's original investors was coming up in Chapter 8?

4. In Chapter 7, Eisman came to the conclusion that none of the banks dealing in CDSs and CDOs really appreciated the disaster awaiting them because of what?

5. A percentage of FrontPoint was owned by what major investment firm?

Short Essay Questions

1. What led Cornwall Capital Management to sell off their CDOs in Chapter 9? How much did they make?

2. Who did Steve Eisman meet at the dinner held by Deutsche Bank in Chapter 6? What did he learn?

3. What role did Ben Hockett play in the success of Cornwall Capital Management?

4. How does the author describe the events at FrontPoint on September 18, 2008?

5. What was Wing Chau selling essentially, as discovered by Eisman in Chapter 6?

6. What did Morgan Stanley offer Howie Hubler in Chapter 9?

7. What did Charlie Ledley and Michael Burry do in the aftermath of the market disaster in Chapter 10?

8. Who took the hardest hit from the mortgage crisis, according to the author in his conclusion of the book?

9. How much did Mike Burry make from his CDSs in Chapter 9? What was his outcome?

10. What conclusion did Steve Eisman reach regarding the CDSs and CDOs in Chapter 7?

(see the answer keys)

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