View a FREE sample

This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. Cornwall Capital Management ended with more than how much in CDOs in Chapter 7?
(a) $600 million.
(b) $200 million.
(c) $450 million.
(d) $150 million.

2. Who was the head of the surveillance department at Moody in Chapter 7?
(a) Greg Lippman.
(b) Lewis Ranieri.
(c) Vincent Daniel.
(d) Ernestine Warner.

3. In Chapter 6, Eisman realized that the CDO manager sitting next to him was selling CDOs that were synthesized from what?
(a) Tranches.
(b) CDSs.
(c) ISDAs.
(d) Other synthesized CDOs.

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?
(a) The lack of ratings the rating companies were giving these CDSs and CDOs.
(b) The low ratings the rating companies were giving these CDSs and CDOs.
(c) The high ratings the rating companies were giving these CDSs and CDOs.
(d) The average ratings the rating companies were giving these CDSs and CDOs.

5. FrontPoint Partners is a subsidiary of what company?
(a) Bear Sterns.
(b) Merrill Lynch.
(c) Morgan Stanley.
(d) Wachovia.

Short Answer Questions

1. During the first six months of what year did Mike Burry find himself struggling with his investors in Chapter 8?

2. For what quickly flagging Wall Street firm was Eisman invited to make a speech in Chapter 10?

3. Where did Michael Lewis receive a BA in Art History?

4. Howie Hubler decided to find a way to bet against mortgage bonds and in doing so began forming what, which he sold to what he thought were ignorant investors?

5. In Chapter 8, Michael Burry found that his reports to his investors were appearing more and more bleak because of his heavy investment in what?

Short Essay Questions

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

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

3. For how much did Morgan Stanley settle on the CDOs in Chapter 9?

4. What actions from the 1980s does the author describe as leading up to the mortgage crisis in the Epilogue?

5. What eventually led to Morgan Stanley questioning the actions of Howie Hubler?

6. Who courted Charlie Ledley at the conference in Chapter 6? What was Ledley's objective at the conference?

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

8. What impact did the conference have on Cornwall Capital Management in Chapter 7?

9. How many CDOs did Cornwall Capital Management acquire after the conference in Chapter 7?

10. How did Michael Lewis begin his career as an author of financial books?

(see the answer keys)

This section contains 1,000 words (approx. 4 pages at 300 words per page) View a FREE sample