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

Multiple Choice Questions

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

2. For what company did Ben Hockett work when he met Jamie Mai?
(a) AIG FP.
(b) Deutsche Bank.
(c) Standard & Poor's.
(d) Oppenheimer and Co.

3. During their research, Ledley and Mai discovered that many CDOs were comprised of triple-B rated mortgages being sold as what?
(a) Triple-C.
(b) Double-B.
(c) Double-C.
(d) Triple-A.

4. In Michael Burry's first credit default swap, he bought how many bonds?
(a) 15.
(b) 6.
(c) 12.
(d) 10.

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

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

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

8. When did money manager Michael Burry become interested in bonds?
(a) 2000.
(b) 2004.
(c) 1996.
(d) 2002.

9. 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.

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

11. What is the name of Mike Burry's investment group?
(a) Scion Capital.
(b) Oppenheimer and Co.
(c) Moody's.
(d) Cornwall Capital Management.

12. In Chapter 5, Charlie Ledley and Jamie Mai continued to make risky investments until they had grown their investment company to how much?
(a) $200 million.
(b) $30 million.
(c) $10 million.
(d) $75 million.

13. The sale of CDSs grew AIG FP so quickly that it provided what percent of AIG's profits in Chapter 3?
(a) 20.
(b) 25.
(c) 15.
(d) 35.

14. 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) 2005.
(d) 2007.

15. Who was Gene Park's boss in Chapter 4?
(a) Joe Cassano.
(b) John Weatherfield.
(c) Theodore Williams.
(d) Amos Robinson.

Short Answer Questions

1. An investment corporation needs a contract through what in order to trade in securities that are traditionally only bought and sold between large investing bodies?

2. What is often referred to as a form of insurance that protects a lender if a borrower of capital defaults on a loan?

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

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

5. In Chapter 5, Ledley and Mai bought multi-million dollar triple-A CDOs rather than the triple-B CDOs who had purchased?

(see the answer keys)

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