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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 2-3.

Multiple Choice Questions

1. What had Michael Burry's father warned him to stay away from in Chapter 2?
(a) Fire.
(b) Las Vegas.
(c) Women.
(d) The stock market.

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

3. In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?
(a) Pork futures.
(b) Auto loans.
(c) Gold and silver.
(d) Subprime mortgages.

4. In a short time, Michael Burry had credit default swaps worth what in subprime mortgage bonds in Chapter 2?
(a) $750 million.
(b) $550 million.
(c) $200 million.
(d) $1 billion.

5. What are bonds that are made up of mortgages sold to consumers by banks?
(a) Mortgage bonds.
(b) Optimum bonds.
(c) Subprime bonds.
(d) Mortgage rate stocks.

Short Answer Questions

1. Where did Michael Lewis work as a bond salesman after earning his Masters degree in Economics?

2. What refers to loans made to customers with less than perfect credit?

3. What mortgage lender did an Oppenheimer banker obtain information on from Steve Eisman in Chapter 1?

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

5. Steve Eisman discovered that what company was fraudulently selling fifteen year mortgages under the guise of thirty year mortgages?

(see the answer key)

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