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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) Bear Stearns.
(d) Aames Financial.

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

3. What refers to a cumulative number that suggests a consumer's credit risk?
(a) Tranches.
(b) FICO Score.
(c) Credit default swap.
(d) Collateral debt obligation.

4. 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) Commercial buildings.
(b) House builders.
(c) Government buildings.
(d) Construction workers.

5. 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 newspaper.
(c) A blog.
(d) A library.

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

7. An investment corporation needs a contract through what in order to trade in securities that are traditionally only bought and sold between large investing bodies?
(a) USDA.
(b) ISDA.
(c) COMA.
(d) IMDB.

8. What is the name of the investment group Steve Eisman formed after quitting his job as a bond analyst?
(a) Cornwall Capital Management.
(b) Scion Capital.
(c) Deutsche Bank.
(d) FrontPoint.

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

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

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

12. Gene Park worked for what company in Chapter 4?
(a) Standard & Poor's.
(b) AIG FP.
(c) Wachovia.
(d) FrontPoint.

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

14. What is the name of the investment group begun by Charlie Ledley and his partner in Chapter 5?
(a) Cornwall Capital Management.
(b) FrontPoint.
(c) Capital One Financial.
(d) Scion Capital.

15. What companies approached Michael Burry and provided him with capital to begin his new company?
(a) Gotham Capital and White Mountains.
(b) Oppenheimer and Co. and Deutsche Bank.
(c) FrontPoint and Oppenheimer and Co.
(d) Deutsche Bank and Standard & Poor's.

Short Answer Questions

1. How much money did Charlie Ledley and Jamie Mai make from their first major investment in a company with legal trouble in Chapter 5?

2. In Chapter 5, Ledley and Mai bought multi-million dollar triple-A CDOs rather than the triple-B CDOs who had purchased?

3. What is the title of Chapter 5?

4. 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?

5. Who began taking the bottom tranches of their mortgage bonds and packaging them together to create CDOs in Chapter 3?

(see the answer keys)

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