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

Multiple Choice Questions

1. For what company did Ben Hockett work when he met Jamie Mai?
(a) Oppenheimer and Co.
(b) Standard & Poor's.
(c) AIG FP.
(d) Deutsche Bank.

2. The mortgage boom and bust which is central in The Big Short: Inside the Doomsday Machine took place between what years?
(a) 1999-2004.
(b) 2005-2008.
(c) 2002-2006.
(d) 2001-2007.

3. With Ben Hockett's help, Cornwall received what contract?
(a) ISDA.
(b) BYR.
(c) JRCA.
(d) CDO.

4. What is a legal document that institutions and businesses use to describe the securities they are offering for participants and buyers?
(a) Contract.
(b) Syllabus.
(c) Prospectus.
(d) Terms of Service.

5. In Michael Burry's first credit default swap, what was the rate of each bond purchased?
(a) $3 million.
(b) $10 million.
(c) $7 million.
(d) $1 million.

Short Answer Questions

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

2. Where did Steve Eisman's wife threaten to move to and raise chickens in Chapter 1?

3. What refers to a cumulative number that suggests a consumer's credit risk?

4. What does CDS stand for?

5. In a short time, Michael Burry had credit default swaps worth what in subprime mortgage bonds in Chapter 2?

(see the answer key)

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