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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. Ranieri describes Tom Strauss as _____.
(a) A snake.
(b) A rabid dog.
(c) A boob.
(d) A clown.

2. Ranieri owns exactly four suits, all of them _____.
(a) Wool.
(b) Rayon.
(c) Silk.
(d) Polyester.

3. According to the author, what is a symbol of Britain's long economic decline?
(a) Sagging thin black socks.
(b) The low price of liquor.
(c) Going beltless.
(d) Meatless Mondays.

4. Howie Rubin is picked up by which company when he is fired from Merrill Lynch?
(a) Shearson Lehman.
(b) Bear Stearns.
(c) Salomon Brothers.
(d) Drexel Burnham.

5. What is Latin for "buyer beware"?
(a) Quid pro quo.
(b) Semper fedelis.
(c) Meum dictum pactum.
(d) Caveat emptor.

Short Answer Questions

1. According to one mortgage trader, it is an accepted fact that mortgage traders have _____.

2. What is jargon for a gamble that is sure to succeed?

3. What book does Conni Bruck write?

4. According to the author, the whole idea of globalization at Salomon Brothers is _____.

5. What are the European genus, English species, of slick financial people called?

Short Essay Questions

1. As the author gains more experience working in London, what does he think interests European traders that differs from American traders?

2. When is the best time to sell short?

3. What is drifting away from Salomon Brothers and toward Drexel Burnham in 1987? Why?

4. Why do thrifts come back for more, even though they don't understand what is happening to their loans in the mortgage bond market?

5. What is the particular need of thrifts in terms of investing in the mortgage bond market?

6. Who took the hit for the AT&T bond loss that the author advised Herman on?

7. How does Lewie Ranieri feel about Michael Milken? How does this differ from John Gutfreund's opinion of him?

8. How does Bear Stearns take the $250 million loss that Howie Rubin incurs at Merrill Lynch?

9. What are the two kinds of friction at Salomon Brothers?

10. What is the relationship of IOs and POs to the market?

(see the answer keys)

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