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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 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.

2. What refers to loans made to customers with less than perfect credit?
(a) CDS's.
(b) High interest.
(c) Gambles.
(d) Subprime.

3. Who agreed to a $5 million dollar deal with Michael Burry in Chapter 2?
(a) Scion Capital
(b) Goldman Sachs.
(c) Cornwall Capital Management.
(d) Bank of America.

4. What is the name of the investment group Steve Eisman formed after quitting his job as a bond analyst?
(a) Deutsche Bank.
(b) Scion Capital.
(c) Cornwall Capital Management.
(d) FrontPoint.

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

Short Answer Questions

1. With Ben Hockett's help, Cornwall received a contract which allowed them to buy what?

2. Michael Burry worked as a resident in what field in Chapter 2?

3. With how much capital did Charlie Ledley and his partner begin a hedge fund in Chapter 5?

4. For what company did Michael Lewis begin working after earning his Masters degree in Economics?

5. What company did Charlie Ledley and Jamie Mai investigate because of some legal troubles, deciding that the legal trouble would blow over and their low stock would soon rally in Chapter 5?

(see the answer key)

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