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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. Steve Eisman discovered that what company was fraudulently selling fifteen year mortgages under the guise of thirty year mortgages?
(a) Household Finance Corporation.
(b) The Fitch Group.
(c) Salomon Brothers.
(d) Gotham Capital.

2. In 2007, Meredith Whitney announced that what company had so mismanaged its affairs that it would slash its dividend or crash?
(a) Citigroup.
(b) Gotham Capital.
(c) The Fitch Group.
(d) Salomon Brothers.

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

4. Where did Michael Lewis earn his Masters degree in Economics?
(a) The Chicago School of Economics.
(b) The New York School of Economics.
(c) The Paris School of Economics.
(d) The London School of Economics.

5. When did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?
(a) 1997.
(b) 1990.
(c) 1994.
(d) 1988.

Short Answer Questions

1. At what age was Michael Lewis when he was shocked that Wall Street would allow him to buy and sell stocks, as described in the Prologue?

2. What was Michael Lewis' first book?

3. What are bonds that are made up of mortgages sold to consumers by banks?

4. Steve Eisman got his job with Oppenheimer and Co. through whom?

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

(see the answer key)

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