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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 8-9.

Multiple Choice Questions

1. What refers to a cumulative number that suggests a consumer's credit risk?
(a) Credit default swap.
(b) Tranches.
(c) Collateral debt obligation.
(d) FICO Score.

2. What is a global financial service company with its headquarters in Frankfurt, Germany?
(a) Morgan Stanley.
(b) Oppenheimer and Co.
(c) Deutsche Bank.
(d) The Fitch Group.

3. Who thought that if AIG stopped buying the bonds, the subprime mortgage bond market would collapse, making him a fortune in Chapter 3?
(a) Michael Lewis.
(b) Greg Lippman.
(c) Meredith Whitney.
(d) Euguene Xu.

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

5. In Chapter 7, Eisman not only bought the CDOs offered by Lippmann, but he also began to short who?
(a) The Wall Street banks involved in these bonds.
(b) The London banks involved with the bonds.
(c) The Federal Reserve.
(d) The SEC.

Short Answer Questions

1. Who wrote the book "The Greatest Trade Ever: How John Paulson Bet Against The Markets and Made $20 Billion"?

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

3. During their research, Ledley and Mai discovered that many CDOs were comprised of triple-B rated mortgages being sold as what?

4. After the conference in Chapter 6, Eisman and his group began paying close attention to what?

5. In criminal law, what is an intentional deception made for personal gain or to damage another individual?

(see the answer key)

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