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

Michael Lewis (author)
This set of Lesson Plans consists of approximately 132 pages of tests, essay questions, lessons, and other teaching materials.
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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Where did Michael Burry begin cataloging his investments and their results, which drew interest from Wall Street brokers without Burry's knowledge?

2. For what company did Michael Lewis begin working after earning his Masters degree in Economics?

3. With Ben Hockett's help, Cornwall received a contract which allowed them to buy what?

4. Where did Steve Eisman's wife threaten to move to and raise chickens in Chapter 1?

5. What is the name of the investment group begun by Charlie Ledley and his partner in Chapter 5?

Short Essay Questions

1. What patterns did Steve Eisman's team discover in mortgage trading in Chapter 4?

2. What did Steve Eisman's team conclude after analyzing the mortgage data in Chapter 4?

3. How did Cornwall Capital Management secure an ISDA? What did this mean for the company?

4. Who was the only person at AIG FP to investigate the company's CDSs in Chapter 4? What did he discover?

5. With whom did Charley Ledley work in New York? What individual did he meet from Berkeley, California in Chapter 5?

6. How do stocks and bonds differ in trading?

7. What picture does the author paint of Steve Eisman and Wall Street in 2005 in Chapter 1?

8. What did Vincent Daniel discover about the ratings companies in Chapter 4?

9. What led to mortgage companies extending loans to unreliable clients, as described in Chapter 1?

10. How are AIG FP's actions described in Chapter 3?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Discuss Cornwall Capital Management in comparison with Scion and FrontPoint. How did each of these companies compare in terms of assets and investors?

Essay Topic 2

Define and discuss CDSs and CDOs. How many different mortgage bonds comprise a CDO and from what tranches are they chosen?

Essay Topic 3

Describe FICO and the role of rating systems in the mortgage crisis. From whom did Eisman make the discoveries about the ratings companies?

(see the answer keys)

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