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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Through the use of what, was Michael Burry guaranteed to only lose only the amount of the premium payments in Chapter 2?

2. Meredith Whitney was an analyst of financial firms for what company in 2007?

3. Where did Michael Lewis earn his Masters degree in Economics?

4. What led Michael Burry to leave his original profession and become a money manager?

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

Short Essay Questions

1. What "expert" did Greg Lippmann bring to speak with Steve Eisman in Chapter 3? Why?

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

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

4. What obstacles did Cornwall Capital Management face as a beginning business?

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

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

7. What drew Mike Burry to an interest in CDSs?

8. How are tranches differentiated in mortgage bonds?

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Discuss Moody's and Standard & Poor's. When were these rating companies established? What is their role on Wall Street?

Essay Topic 2

Discuss the role that Merrill Lynch played in the mortgage crisis of 2008. What actions did the company take which led directly or indirectly to the failings of banks?

Essay Topic 3

Discuss the differences between stock trading and bond trading. How are bonds more difficult to determine the value of?

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