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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Meredith Whitney was an analyst of financial firms for what company in 2007?
(a) Citigroup.
(b) Household Finance Corporation.
(c) Salomon Brothers.
(d) Oppenheimer and Co.

2. 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) Euguene Xu.
(c) Greg Lippman.
(d) Meredith Whitney.

3. In Chapter 5, Ledley and Mai bought multi-million dollar triple-A CDOs rather than the triple-B CDOs who had purchased?
(a) Cassano and Burry.
(b) Lippmann and Cassano.
(c) Lippmann and Xu.
(d) Burry and Eisman.

4. Gene Park worked in offices where in Chapter 4?
(a) Connecticut.
(b) Virginia.
(c) Rhode Island.
(d) Maine.

5. What is the name of the investment group begun by Charlie Ledley and his partner in Chapter 5?
(a) Capital One Financial.
(b) FrontPoint.
(c) Cornwall Capital Management.
(d) Scion Capital.

6. What is the title of Chapter 4?
(a) Migrant Workers in Beverly Hills.
(b) My Work in Mortgages.
(c) The Mortgage Harvest.
(d) How to Harvest a Migrant Worker.

7. 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) 24.
(b) 15.
(c) 18.
(d) 17.

8. Where did Michael Lewis work as a bond salesman after earning his Masters degree in Economics?
(a) Paris.
(b) London.
(c) Stockholm.
(d) Berkeley.

9. Where did Michael Burry share his thoughts on investing while learning what he could from others in Chapter 2?
(a) Online social networks.
(b) Seminars.
(c) Wall street.
(d) Church.

10. What majority-owned subsidiary of Fimalac, S.A., is a global rating agency dedicated to providing value beyond the rating through independent and prospective credit opinions, research and data?
(a) Standard & Poor's.
(b) Wachovia.
(c) Deutsche Bank.
(d) The Fitch Group.

11. As Steve Eisman's team investigated in Chapter 4, they found patterns in the people and states that what?
(a) Were more educated.
(b) Had warmer climates.
(c) Were the most successful.
(d) Suffered the highest default rates.

12. Who from Deutsche Bank asked if they could buy the swaps back from Michael Burry in Chapter 2?
(a) Michael Lewis.
(b) Greg Lippman.
(c) Meredith Whitney.
(d) Euguene Xu.

13. With Ben Hockett's help, Cornwall received a contract which allowed them to buy what?
(a) CDOs.
(b) CDSs.
(c) FICOs.
(d) ISDAs.

14. What led Michael Burry to leave his original profession and become a money manager?
(a) His son's birth.
(b) His father's death.
(c) His wife's death.
(d) His daughter's birth.

15. Where did Michael Lewis grow up?
(a) Denver, Colorado.
(b) Phoenix, Arizona.
(c) New Orleans, Louisiana.
(d) Dallas, Texas.

Short Answer Questions

1. With whom did Michael Burry make his first credit default swap?

2. What does CDS stand for?

3. 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?

4. Steve Eisman's team discovered in Chapter 4 that the mortgage lenders were using what to alter the rating of their bonds?

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

(see the answer keys)

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