View a FREE sample

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

Multiple Choice Questions

1. What are divisions of mortgage bonds in which the mortgage bonds are divided into pieces?
(a) Collateral debt obligation.
(b) Credit default swap.
(c) FICO Scores.
(d) Tranches.

2. The alterations to bond ratings made by mortgage lenders in Chapter 4 led to such things as lending how much money to a migrant worker who made only $14,000 a year?
(a) $700 thousand.
(b) $350 thousand.
(c) $150 thousand.
(d) $500 thousand.

3. What is a collection of one hundred different mortgage bonds, usually the riskiest that are combined to create a new group of bonds that could take the low rated bonds and reclassify them at a higher rate?
(a) Collateral debt obligation.
(b) Tranches.
(c) Credit default swap.
(d) FICO Scores.

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

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

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

7. In Michael Burry's first credit default swap, what was the rate of each bond purchased?
(a) $7 million.
(b) $1 million.
(c) $3 million.
(d) $10 million.

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

9. In a short time, Michael Burry had credit default swaps worth what in subprime mortgage bonds in Chapter 2?
(a) $1 billion.
(b) $550 million.
(c) $750 million.
(d) $200 million.

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

11. What had Steve Eisman studied in college?
(a) Corporate law.
(b) International trade.
(c) South American history.
(d) Art history.

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

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

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

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

Short Answer Questions

1. With Ben Hockett's help, Cornwall received a contract which allowed them to buy what?

2. What is the name of Mike Burry's investment group?

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

4. Who offered Michael Burry bonds at $100 million a deal in Chapter 2?

5. Where did Steve Eisman's wife threaten to move to and raise chickens in Chapter 1?

(see the answer keys)

This section contains 442 words (approx. 2 pages at 300 words per page) View a FREE sample