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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. In what year did Steve Eisman stop working as an analyst and start his own hedge fund?
(a) 1992.
(b) 1997.
(c) 2004.
(d) 1988.

2. What is often referred to as a form of insurance that protects a lender if a borrower of capital defaults on a loan?
(a) Collateral debt obligation.
(b) Tranches.
(c) FICO Scores.
(d) Credit default swap.

3. When was Michael Lewis born?
(a) 1957.
(b) 1956.
(c) 1963.
(d) 1960.

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) October 11, 2008.
(b) March 4, 2006.
(c) August 15, 2009.
(d) June 28, 2007.

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

Short Answer Questions

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

2. With the creation of ______, mortgage companies became inspired to grow quickly and offer a great many loans to customers.

3. What is the name of the investment group Steve Eisman formed after quitting his job as a bond analyst?

4. 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?

5. With whose assistance did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?

(see the answer key)

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