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This quiz consists of 5 multiple choice and 5 short answer questions through Prologue and Chapter 1.

Multiple Choice Questions

1. By what year had Steve Eisman gathered a group of investors around himself filled with people who believed as he did that no one on Wall Street knew what they were doing, as described in Chapter 1?
(a) 1999.
(b) 2001.
(c) 2005.
(d) 2007.

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

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

4. On what date did the head of the International Monetary Fund warn that the world financial system was teetering on the "brink of systemic meltdown"?
(a) March 4, 2006.
(b) October 11, 2008.
(c) August 15, 2009.
(d) June 28, 2007.

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

Short Answer Questions

1. For what company did Michael Lewis begin working after earning his Masters degree in Economics?

2. When was Michael Lewis' first book published?

3. What is a collection of one hundred different mortgage bonds, usually the riskiest that are combined to create a new group of bonds that could take the low rated bonds and reclassify them at a higher rate?

4. What was Michael Lewis' first book?

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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