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

Multiple Choice Questions

1. Through the use of what, was Michael Burry guaranteed to only lose only the amount of the premium payments in Chapter 2?
(a) CDOs.
(b) CDSs.
(c) ISDAs.
(d) Tranches.

2. Cornwall Capital Management ended with more than how much in CDOs in Chapter 7?
(a) $200 million.
(b) $450 million.
(c) $150 million.
(d) $600 million.

3. What is the central banking system of the United States?
(a) The World Bank.
(b) Wells Fargo.
(c) U.S. Bank.
(d) The Federal Reserve.

4. What are divisions of mortgage bonds in which the mortgage bonds are divided into pieces?
(a) Collateral debt obligation.
(b) Credit default swap.
(c) FICO Scores.
(d) Tranches.

5. What does CDS stand for?
(a) Commercial data systems.
(b) Credit foreclosure systems.
(c) Consumer data system.
(d) Credit default swap.

Short Answer Questions

1. 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?

2. Analysts from where revealed to Eisman that no one truly understood these CDOs in Chapter 6?

3. What led Michael Burry to leave his original profession and become a money manager?

4. Who asked Howie Hubler for money owed Deutsche Bank on the CDOs purchased from Hubler in Chapter 9?

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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