View a FREE sample

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

Multiple Choice Questions

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

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

3. Michael Burry worked as a resident in what field in Chapter 2?
(a) Cardiology.
(b) Neurology.
(c) Proctology.
(d) Optometry.

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

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

6. With whom did Michael Burry make his first credit default swap?
(a) Cornwall Capital Management.
(b) Oppenheimer and Co.
(c) Deutsche Bank.
(d) Scion Capital.

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

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

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) Wachovia.
(b) Moody's Corporation.
(c) Deutsche Bank.
(d) Standard & Poor's.

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

11. When was Michael Lewis' first book published?
(a) 1989.
(b) 1983.
(c) 1985.
(d) 1979.

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

13. Where did Steve Eisman's wife threaten to move to and raise chickens in Chapter 1?
(a) Rhode Island.
(b) Delaware.
(c) Maine.
(d) Vermont.

14. Who began taking the bottom tranches of their mortgage bonds and packaging them together to create CDOs in Chapter 3?
(a) Scion Capital.
(b) Goldman Sachs.
(c) Standard & Poor's.
(d) Cornwall Capital Management.

15. When Cornwall Capital Management moved to Bear Sterns, their account was handled by whom?
(a) Ace Greenburg.
(b) Steve Eismann.
(c) Lewis Ranieri.
(d) Michael Lewis.

Short Answer Questions

1. What did Michael Burry study in college?

2. What does CDO stand for?

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

4. 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?

5. 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?

(see the answer keys)

This section contains 455 words (approx. 2 pages at 300 words per page) View a FREE sample