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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

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

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

3. When did Lehman Brothers declare bankruptcy?
(a) September 2009.
(b) November, 2007.
(c) September, 2008.
(d) October, 2008.

4. What refers to a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation?
(a) Ponzi scheme.
(b) Unsubsidized loans.
(c) Derivitaves market.
(d) Subsidized market.

5. Ronald Reagan was the thirty-third governor of what state?
(a) Washington.
(b) California.
(c) Texas.
(d) Arizona.

Short Answer Questions

1. Eljon Williams and his wife were shocked when their mortgage went up over how much from one month to the next in Chapter 3?

2. Eljon Williams learned that the firm which helped him obtain a mortgage had gotten a commission of how much money?

3. For what political party was Sarah Palin the nominee for Vice President of the United States?

4. According to the author, many loans were _____ meaning there was no documentation that confirmed their qualifications for the loans.

5. The protagonist of The Fountainhead is in what profession?

Short Essay Questions

1. What truth of American politics does Taibbi assert in Chapter 1?

2. What setback does the author describe for a banker named Andy?

3. Describe the different tranches of subprime loans discussed in Chapter 3. What were the differences between the tranches?

4. How did the public and private sectors evolve and change during Alan Greenspan's reign of the Federal Reserve, as described in Chapter 2?

5. How are "no doc" loans described in Chapter 3? How were the borrowers scammed in this system?

6. What does Taibbi assert was at the root of the 2008 financial crisis?

7. What actions did Alan Greenspan take which led directly to the housing bubble bust?

8. How does the Tea Party mislead its followers from the true enemy, according to the author?

9. What is the fundamental belief of objectivism, as described in Chapter 2?

10. What process did banks undertake in order to sells risky loans, as described in Chapter 3?

(see the answer keys)

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