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

Multiple Choice Questions

1. 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.

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

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?
(a) Oppenheimer and Co.
(b) Deutsche Bank.
(c) Capital One Financial.
(d) Cornwall Capital Management.

4. How old was Charlie Ledley when he moved to California to create a hedge fund?
(a) 21.
(b) 18.
(c) 30.
(d) 27.

5. Who agreed to a $5 million dollar deal with Michael Burry in Chapter 2?
(a) Bank of America.
(b) Scion Capital
(c) Goldman Sachs.
(d) Cornwall Capital Management.

6. In criminal law, what is an intentional deception made for personal gain or to damage another individual?
(a) Fraud.
(b) Heresy.
(c) Contempt.
(d) Embezzlement.

7. Where did Michael Burry begin cataloging his investments and their results, which drew interest from Wall Street brokers without Burry's knowledge?
(a) A magazine.
(b) A library.
(c) A newspaper.
(d) A blog.

8. What are bonds that are made up of mortgages sold to consumers by banks?
(a) Optimum bonds.
(b) Subprime bonds.
(c) Mortgage rate stocks.
(d) Mortgage bonds.

9. In what year did Steve Eisman stop working as an analyst and start his own hedge fund?
(a) 2004.
(b) 1992.
(c) 1988.
(d) 1997.

10. What did Michael Burry study in college?
(a) Engineering.
(b) Law.
(c) History.
(d) Medicine.

11. In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?
(a) Subprime mortgages.
(b) Auto loans.
(c) Gold and silver.
(d) Pork futures.

12. What does CDS stand for?
(a) Consumer data system.
(b) Credit foreclosure systems.
(c) Commercial data systems.
(d) Credit default swap.

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

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

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

Short Answer Questions

1. For what company did Ben Hockett work when he met Jamie Mai?

2. 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?

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

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

5. Who from Deutsche Bank asked if they could buy the swaps back from Michael Burry in Chapter 2?

(see the answer keys)

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