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

Multiple Choice Questions

1. What mortgage lender did an Oppenheimer banker obtain information on from Steve Eisman in Chapter 1?
(a) Gotham Capital.
(b) Citigroup.
(c) Bear Stearns.
(d) Aames Financial.

2. What does CDO stand for?
(a) Collateralized debt obligations.
(b) Common debt obligations.
(c) Client debt options.
(d) Calculated debt options.

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

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

5. What was Michael Lewis' first book?
(a) Stock Junkies.
(b) Liar's Poker.
(c) Trade or Die.
(d) Digital Money.

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

7. With whose assistance did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?
(a) Vincent Daniel's.
(b) Michael Lewis'.
(c) Greg Lippmann's.
(d) Meredith Whitney's.

8. Who offered Michael Burry bonds at $100 million a deal in Chapter 2?
(a) Deutsche Bank.
(b) Bank of America.
(c) Oppenheimer and Co.
(d) Goldman Sachs.

9. Through the use of what, was Michael Burry guaranteed to only lose only the amount of the premium payments in Chapter 2?
(a) ISDAs.
(b) CDOs.
(c) CDSs.
(d) Tranches.

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

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

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

13. Who went to a conference of subprime mortgage bond professionals and learned from a woman that her supervisors picked and chose which mortgage bonds would be triple-A rated despite her frequent recommendations that most of them be downgraded?
(a) Ernestine Warner.
(b) Vincent Daniel.
(c) Steve Eisman.
(d) Jamie Mai.

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

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

Short Answer Questions

1. Who was Gene Park's boss in Chapter 4?

2. Michael Burry could not bet against mortgage bonds in the same way he could other bonds because he could not short houses, only what?

3. 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?

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

5. Where did Michael Burry begin cataloging his investments and their results, which drew interest from Wall Street brokers without Burry's knowledge?

(see the answer keys)

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