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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 3: Hot Potato, The Great American Mortgage Scam.

Multiple Choice Questions

1. Eljon Williams contacted what firm to help him get a home loan with a fixed mortgage?
(a) Goldman-Sachs.
(b) Solomon Edwards.
(c) Merrill Lynch.
(d) Wachovia.

2. In Chapter 3, what process in which loans are split up and sold off to secondary investors as securities was used by banks?
(a) Authorization.
(b) Derivatives.
(c) Securitization.
(d) Amortization.

3. What do T-Bills refer to?
(a) Trade bills.
(b) Tendered bills.
(c) Treasury bills.
(d) Tranche bills.

4. By 2005, there was over how much money in subprime loans approved?
(a) $800 billion.
(b) $600 billion.
(c) $500 billion.
(d) $300 million.

5. In what year did Alan Greenspan earn his M.A. degree in economics?
(a) 1965.
(b) 1970.
(c) 1954.
(d) 1950.

Short Answer Questions

1. Alongside what Presidential nominee did Sarah Palin run as Vice President of the United States?

2. What refers to a market for securities (debt or equity), where business enterprises and governments can raise long-term funds?

3. What refers to an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities?

4. In 2002, less than how much worth of subprime loans was approved?

5. Where did Alan Greenspan earn a B.S. degree in economics summa cum laude?

(see the answer key)

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