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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 2-3.

Multiple Choice Questions

1. What refers to a security interest in real property held by a lender as a security for a debt?
(a) Mortgage
(b) Stock
(c) Subprime lending
(d) Short-seller

2. What was the largest and most prestigious investment bank in the nation that Jamie Dimon advised his staff could possibly file bankruptcy in the Prologue?
(a) Wells Fargo
(b) Goldman Sachs
(c) Wachovia
(d) Barclays

3. Timothy Geithner was the President of the Federal Reserve Bank of New York during what years?
(a) 2002-2005
(b) 1999-2002
(c) 2001-2010
(d) 2003-2009

4. Where was Dick Fuld visiting when he received an urgent call from Henry Paulson regarding the collapse of the fifth largest investment bank in the U.S., according to the author in Chapter 1?
(a) Iceland
(b) England
(c) India
(d) China

5. What word in finance refers to the act of making loans to people who may have difficulty maintaining the repayment schedule?
(a) Subprime lending
(b) Derivative lending
(c) Short-selling
(d) Naked short-selling

Short Answer Questions

1. Who nominated Hank Paulson to his post in the federal cabinet?

2. On what date did Lehman Brothers release its earnings report for the first quarter of 2008?

3. According to the author in Chapter 1, Henry Paulson called and informed Dick Fuld that Bear Stearns collapsed and that the U.S. Treasury had taken the step of backing how much in Bear Stearns assets to restore confidence in the market?

4. According to the author in Chapter 3, Geithner kept Jamie Dimon from abandoning the negotiations with Bear Stearns by working out a deal where the Federal Reserve lent money to Bear Stearns through JP Morgan, guaranteeing Morgan against how much in losses?

5. Dick Fuld was the CEO of what global financial services firm in March, 2008?

(see the answer key)

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