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

Multiple Choice Questions

1. What did "NASDAQ" originally stand for?
(a) Numbering Association of Stock Dealers Automated Quotations.
(b) National Association of Securities Dealers Automated Quotations.
(c) National Association of Specialized Dealers in Automotive Quotations.
(d) National Assets of Securities Dealers Automated Queries.

2. In Chapter 7, Eisman not only bought the CDOs offered by Lippmann, but he also began to short who?
(a) The London banks involved with the bonds.
(b) The Federal Reserve.
(c) The SEC.
(d) The Wall Street banks involved in these bonds.

3. Howie Hubler was a bond trader for what company in Chapter 9?
(a) Morgan Stanley.
(b) Merrill Lynch.
(c) Wachovia.
(d) Bear Sterns.

4. How much money did Howie Hubler owe Deutsche Bank on the CDOs purchased from Hubler in Chapter 9?
(a) $650 million.
(b) $900 million.
(c) $1.2 billion.
(d) $750 million.

5. Where did Michael Lewis receive a BA in Art History?
(a) Princeton University.
(b) Yale University.
(c) U.C. Davis.
(d) Harvard University.

6. When did Howie Hubler go on vacation and never return in Chapter 9?
(a) October, 2007.
(b) March, 2005.
(c) July, 2002.
(d) April, 2006.

7. Howie Hubler decided to find a way to bet against mortgage bonds and in doing so began forming what, which he sold to what he thought were ignorant investors?
(a) CEOs.
(b) CFSs.
(c) CDSs.
(d) CDOs.

8. What is a spectrum of psychological conditions characterized by widespread abnormalities of social interactions and communication, as well as restricted interests and repetitive behavior?
(a) Schizophenic spectrum.
(b) The autism spectrum.
(c) The Asperger spectrum.
(d) ADHD.

9. What does NYSE stand for?
(a) New York Stock Exchange.
(b) New York Securities Enterprise.
(c) New York Securities Engine.
(d) New York Stock Entrepreneurs.

10. How much did Cornwall Capital Management make from selling its CDOs in Chapter 9?
(a) Over $120 million.
(b) Over $240 million.
(c) Over $80 million.
(d) Over $450 million.

11. In Chapter 7, Steve Eisman learned that the rating companies were working with the same information as who?
(a) The Chinese.
(b) Himself.
(c) The government.
(d) The investors.

12. What nickname was John Gutfreund given by Business Week in 1985?
(a) "King of Wall Street".
(b) "Mob Boss".
(c) "Wall Street's Tycoon".
(d) "King of the Hill".

13. In Chapter 7, Eisman came to the conclusion that none of the banks dealing in CDSs and CDOs really appreciated the disaster awaiting them because of what?
(a) The high ratings the rating companies were giving these CDSs and CDOs.
(b) The lack of ratings the rating companies were giving these CDSs and CDOs.
(c) The low ratings the rating companies were giving these CDSs and CDOs.
(d) The average ratings the rating companies were giving these CDSs and CDOs.

14. Where was the conference for subprime mortgage bond salesmen and buyers in Chapter 6?
(a) Las Vegas.
(b) New York.
(c) Miami.
(d) Chicago.

15. Asperger's syndrome differs from other autistic disorders by its relative preservation of development in what areas?
(a) Linguistic and cognitive.
(b) Linguistic.
(c) Coordination and Linguistic.
(d) Cognitive and spacial.

Short Answer Questions

1. For what quickly flagging Wall Street firm was Eisman invited to make a speech in Chapter 10?

2. What does the SEC refer to?

3. When did John Gutfreund become managing partner of Salomon Brothers?

4. Who was the head of the surveillance department at Moody in Chapter 7?

5. In Chapter 6, Eisman realized that the CDO manager sitting next to him was selling CDOs that were synthesized from what?

(see the answer keys)

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