View a FREE sample

This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

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

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

3. In what year did Steve Eisman stop working as an analyst and start his own hedge fund?
(a) 1992.
(b) 1988.
(c) 2004.
(d) 1997.

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

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

Short Answer Questions

1. What is the title of Chapter 4?

2. For what company did Ben Hockett work when he met Jamie Mai?

3. Michael Burry lost his left eye due to what as a toddler?

4. With whom did Michael Burry make his first credit default swap?

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

Short Essay Questions

1. How is Mike Burry described in Chapter 3? What did he study before entering the stock market?

2. What led Steve Eisman to open his own hedge fund?

3. What did Goldman Sachs begin doing with their bottom tranches in Chapter 3?

4. How did Steve Eisman come to work for Oppenheimer Co.? How is he described?

5. What important individuals and concepts are introduced in Chapter 1?

6. What patterns did Steve Eisman's team discover in mortgage trading in Chapter 4?

7. What led to mortgage companies extending loans to unreliable clients, as described in Chapter 1?

8. How are AIG FP's actions described in Chapter 3?

9. Who was the only person at AIG FP to investigate the company's CDSs in Chapter 4? What did he discover?

10. What was AIG FP's role in the stock market crash, as described in Chapter 3?

(see the answer keys)

This section contains 908 words (approx. 4 pages at 300 words per page) View a FREE sample