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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 4-5.

Multiple Choice Questions

1. What is the title of Chapter 5?
(a) The Blind Investors.
(b) Accidental Capitalists.
(c) Wall Street Rookies.
(d) A Lucky Fortune.

2. Who began taking the bottom tranches of their mortgage bonds and packaging them together to create CDOs in Chapter 3?
(a) Goldman Sachs.
(b) Standard & Poor's.
(c) Cornwall Capital Management.
(d) Scion Capital.

3. Gene Park worked for what company in Chapter 4?
(a) AIG FP.
(b) FrontPoint.
(c) Standard & Poor's.
(d) Wachovia.

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

5. The woman who stated that her supervisors picked and chose which mortgage bonds would be triple-A rated despite her frequent recommendations that most of them be downgraded worked for what company in Chapter 4?
(a) Deutsche Bank.
(b) Moody's Corporation.
(c) Wachovia.
(d) Standard & Poor's.

Short Answer Questions

1. What is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds?

2. Who offered Michael Burry bonds at $100 million a deal in Chapter 2?

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

4. What refers to loans made to customers with less than perfect credit?

5. How much money did Charlie Ledley and Jamie Mai make from their first major investment in a company with legal trouble in Chapter 5?

(see the answer key)

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