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

2. What mortgage lender did an Oppenheimer banker obtain information on from Steve Eisman in Chapter 1?
(a) Citigroup.
(b) Bear Stearns.
(c) Aames Financial.
(d) Gotham Capital.

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

4. Where did Steve Eisman's wife threaten to move to and raise chickens in Chapter 1?
(a) Rhode Island.
(b) Delaware.
(c) Vermont.
(d) Maine.

5. 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) 2001.
(b) 2007.
(c) 1999.
(d) 2005.

Short Answer Questions

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

2. 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?

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

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"?

5. After Eisman's published report, there were no more public subprime mortgage lenders by what year, as described in Chapter 1?

(see the answer key)

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