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

Multiple Choice Questions

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

2. In Chapter 4, AIG FP did not get whose message as he assumed they had?
(a) Michael Lewis'.
(b) Ben Hockett's.
(c) Greg Lippmann's.
(d) Ace Greenburg's.

3. When did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?
(a) 1997.
(b) 1990.
(c) 1994.
(d) 1988.

4. For what company did Ben Hockett work when he met Jamie Mai?
(a) Oppenheimer and Co.
(b) Deutsche Bank.
(c) AIG FP.
(d) Standard & Poor's.

5. Who thought that if AIG stopped buying the bonds, the subprime mortgage bond market would collapse, making him a fortune in Chapter 3?
(a) Meredith Whitney.
(b) Greg Lippman.
(c) Michael Lewis.
(d) Euguene Xu.

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

7. Michael Burry could not bet against mortgage bonds in the same way he could other bonds because he could not short houses, only what?
(a) Construction workers.
(b) Commercial buildings.
(c) House builders.
(d) Government buildings.

8. Where did Michael Lewis work as a bond salesman after earning his Masters degree in Economics?
(a) Paris.
(b) Stockholm.
(c) London.
(d) Berkeley.

9. What led Michael Burry to leave his original profession and become a money manager?
(a) His wife's death.
(b) His son's birth.
(c) His father's death.
(d) His daughter's birth.

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

11. Where did Michael Lewis earn his Masters degree in Economics?
(a) The London School of Economics.
(b) The Paris School of Economics.
(c) The Chicago School of Economics.
(d) The New York School of Economics.

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

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

14. As Steve Eisman's team investigated in Chapter 4, they found patterns in the people and states that what?
(a) Had warmer climates.
(b) Were the most successful.
(c) Suffered the highest default rates.
(d) Were more educated.

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

Short Answer Questions

1. What is the name of the investment group begun by Charlie Ledley and his partner in Chapter 5?

2. What does AIG FP stand for?

3. After Eisman's published report, there were no more public subprime mortgage lenders by what year, as described in Chapter 1?

4. With how much capital did Charlie Ledley and his partner begin a hedge fund in Chapter 5?

5. With Ben Hockett's help, Cornwall received what contract?

(see the answer keys)

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