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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 16-17.

Multiple Choice Questions

1. When did Bob Willumstad accept the position of CEO of AIG?
(a) November, 2005
(b) March, 2007
(c) August, 2006
(d) June, 2008

2. According to the author in Chapter 5, David Einhorn was a hedge manager controlling over how much money in assets?
(a) $3 billion
(b) $10 billion
(c) $12 billion
(d) $6 billion

3. Henry Paulson told the bankers at the meeting at the Treasury building in Chapter 11 that they had three objectives. What were they?
(a) Public opinion, taxpayer protection, and interest rates
(b) Stock values, interest rates, and new legislation
(c) Market stability, mortgage availability, and taxpayer protection
(d) Wealth security, public opinion, and legal loopholes

4. In what year does the author state Long-Term Capital Management blew up in Chapter 5?
(a) 1996
(b) 1998
(c) 1995
(d) 1999

5. Hank Paulson and his staff prepared a secret plan for how to deal with the situation in Chapter 4. Their plan proposed that should the banks fail, the Treasury Department would purchase up to how many of the bad assets of the banks in order to stabilize the market?
(a) $300 billion
(b) $100 billion
(c) $200 billion
(d) $500 billion

Short Answer Questions

1. What does KDB stand for?

2. Regarding the problems at AIG, the plan that was finally put in place was for the government to take over 80% of AIG in exchange for a loan of how much?

3. Where does the author say Gerald Domini lived in Chapter 5?

4. Freddie Mac had a reported loss of how much in the morning when Henry Paulson met with the top bankers at the Treasury building in Chapter 11?

5. Who was the Assistant Secretary for Financial Markets of the Treasury in Chapter 11?

(see the answer key)

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