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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. According to the author, in his years of power, Alan Greenspan was able to turn the Federal Reserve into what?
(a) A bail-out mechanism for the ultra-rich.
(b) A place of integrity and fairness.
(c) A Socialist mechanism.
(d) An establishment for the poor.

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

3. In what year did Alan Greenspan tell Congress that the risk involved in derivatives was "negligible"?
(a) 1987.
(b) 1982.
(c) 1994.
(d) 1990.

4. According to the author, the Tea Party believes that the economy is self-correcting as long as commerce and _______ are separated.
(a) Socialism.
(b) Government.
(c) Business.
(d) Derivatives.

5. Where did Matt Taibbi hear Sarah Palin's acceptance speech in Chapter 1?
(a) The Hewlitt Packard Center, San Jose, CA.
(b) Wall Street, New York, NY.
(c) The Xcel Center in St. Paul, MN.
(d) The Superdome, New Orleans, LA.

6. Who is the protagonist of Atlas Shrugged?
(a) Howard Roark.
(b) James Edwards.
(c) Dagny Taggart.
(d) Michael Williams.

7. The loans on the bottom tier of derivatives were referred to as what?
(a) Bottom feeders.
(b) AAA.
(c) Toxic waste.
(d) Top notch.

8. What are created when banks split their mortgage loan payments into three levels and sell them in separate packages?
(a) Derivatives.
(b) Incidentals.
(c) Collectives.
(d) Tranch blocks.

9. During his economic studies, Alan Greenspan worked under Eugene Banks, a managing director at what Wall Street investment bank?
(a) Solomon Edwards.
(b) Brown Brothers Harriman.
(c) Deutche Bank.
(d) Simon & Schuster.

10. T-Bills mature in what time?
(a) 5 years or more.
(b) 10 years or less.
(c) 2 years.
(d) 1 year or less.

11. What refers to the part of the economy which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state?
(a) Stock market.
(b) Public sector.
(c) Private sector.
(d) Education system.

12. Who is the protagonist of The Fountainhead?
(a) Dagny Taggart.
(b) John Gatsby.
(c) Sarah Anderson.
(d) Howard Roark.

13. What does NINJA stand for in the mortgage industry?
(a) No indictments, job, or allimony.
(b) No incidental job or abilities.
(c) No income, job, or allocations.
(d) No income, job, or assets.

14. Alan Greenspan was born in what area of New York City?
(a) Washington Heights.
(b) Greenwich Village.
(c) Astoria, Queens.
(d) The Upper East Side.

15. When was The Fountainhead published?
(a) 1954.
(b) 1943.
(c) 1967.
(d) 1941.

Short Answer Questions

1. For what magazine was Matt Taibbi working as a reporter when he describes having listened to the acceptance speech of Sarah Palin in Chapter 1?

2. Where did Alan Greenspan study clarinet from 1943 to 1944?

3. What involves an exchange of the defaulted loan instrument (and with it the right to recover the default loan at some later time) for immediate money - usually the face value of the loan?

4. In finance, what occurs whenever the loan payment for any period is less than the interest charged over that period so that the outstanding balance of the loan increases?

5. When was Ronald Reagan born?

(see the answer keys)

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