View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 2-3.

Multiple Choice Questions

1. For what company did Michael Lewis begin working after earning his Masters degree in Economics?
(a) Aames Financial.
(b) Salomon Brothers.
(c) Citigroup.
(d) Oppenheimer and Co.

2. In Michael Burry's first credit default swap, what was the rate of each bond purchased?
(a) $3 million.
(b) $1 million.
(c) $10 million.
(d) $7 million.

3. In a short time, Michael Burry had credit default swaps worth what in subprime mortgage bonds in Chapter 2?
(a) $550 million.
(b) $1 billion.
(c) $750 million.
(d) $200 million.

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

5. What is a legal document that institutions and businesses use to describe the securities they are offering for participants and buyers?
(a) Contract.
(b) Syllabus.
(c) Terms of Service.
(d) Prospectus.

Short Answer Questions

1. Who began taking the bottom tranches of their mortgage bonds and packaging them together to create CDOs in Chapter 3?

2. What had Michael Burry's father warned him to stay away from in Chapter 2?

3. What does CDS stand for?

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

5. Where did Michael Lewis earn his Masters degree in Economics?

(see the answer key)

This section contains 229 words (approx. 1 page at 300 words per page) View a FREE sample