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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) Citigroup.
(b) Gotham Capital.
(c) Aames Financial.
(d) Bear Stearns.

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

3. 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) Standard & Poor's.
(c) Moody's Corporation.
(d) Wachovia.

4. 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) Jamie Mai.
(b) Steve Eisman.
(c) Vincent Daniel.
(d) Ernestine Warner.

5. 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) 18.
(b) 17.
(c) 24.
(d) 15.

6. When was Michael Burry born?
(a) 1960.
(b) 1971.
(c) 1963.
(d) 1959.

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

8. What Chinese national who came in second in a math competition in China accompanied Greg Lippmann in Chapter 3?
(a) Michael Oher.
(b) Meredith Whitney.
(c) Steve Eisman.
(d) Euguene Xu.

9. Michael Burry lost his left eye due to what as a toddler?
(a) A car accident.
(b) Glaucoma.
(c) Cancer.
(d) Asperger's Syndrome.

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

11. What does AIG FP stand for?
(a) American International Group Financial Products.
(b) American Investment Group Financial Portfolios.
(c) American International Group Fiscal Products.
(d) American Investment Group Financial Portfolios.

12. Steve Eisman got his job with Oppenheimer and Co. through whom?
(a) A friend from college.
(b) His uncle..
(c) His neighbor.
(d) His parents.

13. 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.

14. In finance, what occurs when a debtor has not met his or her legal obligations according to the debt contract?
(a) Refinancing.
(b) Default.
(c) Forclosure.
(d) Repossesion.

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

Short Answer Questions

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

2. When did money manager Michael Burry become interested in bonds?

3. What does CDS stand for?

4. When did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?

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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