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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 led Michael Burry to leave his original profession and become a money manager?
(a) His son's birth.
(b) His daughter's birth.
(c) His father's death.
(d) His wife's death.

2. When did money manager Michael Burry become interested in bonds?
(a) 2000.
(b) 1996.
(c) 2004.
(d) 2002.

3. In Michael Burry's first credit default swap, he bought how many bonds?
(a) 6.
(b) 10.
(c) 12.
(d) 15.

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

5. With the creation of ______, mortgage companies became inspired to grow quickly and offer a great many loans to customers.
(a) Moody's.
(b) Standard & Poor's.
(c) Mortgage bonds.
(d) FICO Scores.

Short Answer Questions

1. Who thought that if AIG stopped buying the bonds, the subprime mortgage bond market would collapse, making him a fortune in Chapter 3?

2. What had Steve Eisman studied in college?

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

4. Who agreed to a $5 million dollar deal with Michael Burry in Chapter 2?

5. In finance, what occurs when a debtor has not met his or her legal obligations according to the debt contract?

(see the answer key)

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