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

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

3. What is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds?
(a) Deutsche Bank.
(b) Cornwall Capital Management.
(c) Scion Capital.
(d) Standard & Poor's.

4. In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?
(a) Auto loans.
(b) Subprime mortgages.
(c) Gold and silver.
(d) Pork futures.

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.

Short Answer Questions

1. When was Michael Lewis' first book published?

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

3. What did Michael Burry study in college?

4. In 2007, Meredith Whitney announced that what company had so mismanaged its affairs that it would slash its dividend or crash?

5. In a short time, Michael Burry had credit default swaps worth what in subprime mortgage bonds in Chapter 2?

Short Essay Questions

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

2. What did Ledley and Mai discover about CDOs and CDSs in Chapter 5?

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

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

5. How does the author describe his impressions of Wall Street when he began working there in Chapter 1?

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

7. What did Vincent Daniel discover about the ratings companies in Chapter 4?

8. Discuss Steve Eisman's work with mortgage bonds. How were mortgage bonds divided?

9. How did Charlie Ledley's first investment pay out? What was the company's worth?

10. What did Steve Eisman discover about Household Finance Corporation in Chapter 1?

(see the answer keys)

This section contains 902 words (approx. 4 pages at 300 words per page) View a FREE sample