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

Multiple Choice Questions

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

2. How much money did Charlie Ledley and Jamie Mai make from their first major investment in a company with legal trouble in Chapter 5?
(a) Over $3 million.
(b) Over $1 million.
(c) Over $5 million.
(d) Over $500,000.

3. With the creation of ______, mortgage companies became inspired to grow quickly and offer a great many loans to customers.
(a) Moody's.
(b) Standard & Poor's.
(c) Mortgage bonds.
(d) FICO Scores.

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

5. What does AIG FP stand for?
(a) American Investment Group Financial Portfolios.
(b) American International Group Fiscal Products.
(c) American International Group Financial Products.
(d) American Investment Group Financial Portfolios.

Short Answer Questions

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

2. With whose assistance did Steve Eisman publish a report outlining the bad practices of the subprime mortgage lender in Chapter 1?

3. In what year did Steve Eisman stop working as an analyst and start his own hedge fund?

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

5. Where did Michael Burry begin cataloging his investments and their results, which drew interest from Wall Street brokers without Burry's knowledge?

Short Essay Questions

1. How do stocks and bonds differ in trading?

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

3. How are tranches differentiated in mortgage bonds?

4. How did Charlie Ledley enter the bond market in Chapter 5?

5. How did Greg Lippmann believe he could make a fortune in the subprime mortgage industry in Chapter 3?

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

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

8. How did Cornwall Capital Management secure an ISDA? What did this mean for the company?

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

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

(see the answer keys)

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