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

Multiple Choice Questions

1. 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) 1999.
(c) 2007.
(d) 2005.

2. 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?
(a) 17.
(b) 24.
(c) 18.
(d) 15.

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

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

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

Short Answer Questions

1. What does CDS stand for?

2. In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?

3. Who agreed to a $5 million dollar deal with Michael Burry in Chapter 2?

4. Michael Burry could not bet against mortgage bonds in the same way he could other bonds because he could not short houses, only what?

5. What was Michael Lewis' first book?

(see the answer key)

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