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

Multiple Choice Questions

1. What NBC correspondent did Alan Greenspan marry?
(a) Andrea Mitchell.
(b) Alexis Marcantel.
(c) Michelle Kimble.
(d) Jane Pauley.

2. When was Alan Greenspan born?
(a) 1911.
(b) 1953.
(c) 1926.
(d) 1940.

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

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

5. Where was Ayn Rand born?
(a) Alberta, Canada.
(b) Saint Petersburg, Russia.
(c) New Brunswick, Canada.
(d) New York, New York.

6. What refers to a financial market where participants can issue new debt, known as the Primary market, or buy and sell debt securities, known as the Secondary market, usually in the form of bonds?
(a) Bond market.
(b) Stock market.
(c) Derivatives market.
(d) Speculative market.

7. When was Ayn Rand born?
(a) 1905.
(b) 1925.
(c) 1915.
(d) 1930.

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

9. Of what political party was Ronald Reagan a member?
(a) Democrat.
(b) Tea Party.
(c) Green Party.
(d) Republican.

10. AIG was listed on the Dow Jones Industrial Average from _________ to September 22, 2008.
(a) March 12, 2008.
(b) April 8, 2004.
(c) September 19, 2005.
(d) August 5, 2003.

11. Who was Vice President to Richard Nixon?
(a) Ronald Reagan.
(b) Spiro Agnew.
(c) George H. Bush.
(d) Lyndon Johnson.

12. The fundamental belief of what philosophy is that self-interest is a normal human state and interventionism by the government is unnatural and evil?
(a) Subjectivism.
(b) Pluralism.
(c) Objectivism.
(d) Absurdism.

13. Where did Alan Greenspan study clarinet from 1943 to 1944?
(a) Harvard University.
(b) New York University.
(c) Boston College.
(d) The Juilliard School.

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

15. What refers to trade in high volumes at prices that are considerably at variance with intrinsic values?
(a) Bubble economy.
(b) Free-market economics.
(c) Socialism.
(d) Capitalism.

Short Answer Questions

1. What was the name of Ayn Rand's circle of intellectuals which was dedicated to relentless self-interest?

2. In Chapter 3, what process in which loans are split up and sold off to secondary investors as securities was used by banks?

3. Since 2002, Deutsche Bank's Chief Executive Officer and Chairman of the Group Executive Committee has been __________.

4. What is a private, actively managed investment fund that utilizes sophisticated strategies in international and/or domestic markets, offsets losses during a market downturn, and/or generates returns higher than traditional stock and bond investments?

5. Who is the protagonist of The Fountainhead?

(see the answer keys)

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