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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 6-7.

Multiple Choice Questions

1. With how much capital did Charlie Ledley and his partner begin a hedge fund in Chapter 5?
(a) $40,000.
(b) $60,000.
(c) $75,000.
(d) $110,000.

2. At the conference in Chapter 6, Charlie Ledley found himself being courted by what company and chiefly ignored by most of the other conference attendees?
(a) AIG FP.
(b) Bear Stearns.
(c) Morgan Stanley.
(d) Standard & Poor's.

3. What does the SEC refer to?
(a) Securities and Exchange Commission.
(b) Sellers and Engineers Committee.
(c) Speculators and Experts Council.
(d) Special Experts Conglomerate.

4. Meredith Whitney was an analyst of financial firms for what company in 2007?
(a) Household Finance Corporation.
(b) Oppenheimer and Co.
(c) Citigroup.
(d) Salomon Brothers.

5. In 2007, Meredith Whitney announced that what company had so mismanaged its affairs that it would slash its dividend or crash?
(a) Salomon Brothers.
(b) Gotham Capital.
(c) The Fitch Group.
(d) Citigroup.

Short Answer Questions

1. In whose garage did Charlie Ledley begin operating a hedge fund in Chapter 5?

2. Who began taking the bottom tranches of their mortgage bonds and packaging them together to create CDOs in Chapter 3?

3. What is the title of Chapter 4?

4. In Chapter 7, Eisman came to the conclusion that none of the banks dealing in CDSs and CDOs really appreciated the disaster awaiting them because of what?

5. In Chapter 7, Eisman not only bought the CDOs offered by Lippmann, but he also began to short who?

(see the answer key)

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