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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) Salomon Brothers.
(b) Household Finance Corporation.
(c) Citigroup.
(d) Oppenheimer and Co.

2. What was Michael Lewis' first book?
(a) Liar's Poker.
(b) Trade or Die.
(c) Stock Junkies.
(d) Digital Money.

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?
(a) Collateral debt obligation.
(b) Tranches.
(c) Credit default swap.
(d) FICO Scores.

4. Steve Eisman got his job with Oppenheimer and Co. through whom?
(a) His parents.
(b) A friend from college.
(c) His uncle..
(d) His neighbor.

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

Short Answer Questions

1. What is often referred to as a form of insurance that protects a lender if a borrower of capital defaults on a loan?

2. What are divisions of mortgage bonds in which the mortgage bonds are divided into pieces?

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

4. Where did Michael Lewis work as a bond salesman after earning his Masters degree in Economics?

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

(see the answer key)

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