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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 8-9.

Multiple Choice Questions

1. Gene Park discovered that the CDSs being sold by his company contained more what than anyone knew?
(a) Subprime mortgage bonds.
(b) Grain futures.
(c) Precious metals.
(d) Car loans.

2. Michael Burry could not bet against mortgage bonds in the same way he could other bonds because he could not short houses, only what?
(a) Construction workers.
(b) Government buildings.
(c) House builders.
(d) Commercial buildings.

3. What majority-owned subsidiary of Fimalac, S.A., is a global rating agency dedicated to providing value beyond the rating through independent and prospective credit opinions, research and data?
(a) Deutsche Bank.
(b) The Fitch Group.
(c) Standard & Poor's.
(d) Wachovia.

4. What company did Charlie Ledley and Jamie Mai investigate because of some legal troubles, deciding that the legal trouble would blow over and their low stock would soon rally in Chapter 5?
(a) Capital One Financial.
(b) Cornwall Capital Management.
(c) Deutsche Bank.
(d) Oppenheimer and Co.

5. During their research, Ledley and Mai discovered that many CDOs were comprised of triple-B rated mortgages being sold as what?
(a) Triple-A.
(b) Double-B.
(c) Triple-C.
(d) Double-C.

Short Answer Questions

1. How much ownership was Howie Hubler over his own company in the deal in Chapter 9?

2. Where did Michael Burry share his thoughts on investing while learning what he could from others in Chapter 2?

3. In Chapter 9 the author writes that it became apparent that no one at Morgan Stanley fully understood the CDO deals, including who?

4. The sale of CDSs grew AIG FP so quickly that it provided what percent of AIG's profits in Chapter 3?

5. The woman who stated that her supervisors picked and chose which mortgage bonds would be triple-A rated despite her frequent recommendations that most of them be downgraded worked for what company in Chapter 4?

(see the answer key)

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