- 1. Who is the author of the book 'The Big Short: Inside the Doomsday Machine'?
A) Sylvia Nasar
B) Daniel Kahneman
C) Michael Lewis
D) Ben Bernanke
- 2. In what year was 'The Big Short: Inside the Doomsday Machine' first published?
A) 2010
B) 2016
C) 2008
D) 2014
- 3. Which financial product played a key role in the events described in the book?
A) Savings accounts
B) Stock options
C) Treasury bonds
D) Credit default swaps
- 4. Which major investment bank collapsed during the financial crisis?
A) Lehman Brothers
B) Morgan Stanley
C) Goldman Sachs
D) JP Morgan Chase
- 5. Who founded the hedge fund Scion Capital in the book?
A) Greg Lippmann
B) Michael Burry
C) Mark Baum
D) Steve Eisman
- 6. Which government-sponsored enterprise played a significant part in the housing market collapse?
A) Sallie Mae
B) Freddie Mac
C) Ginnie Mae
D) Fannie Mae
- 7. What does 'CDO' stand for in the context of the book?
A) Credit Default Option
B) Credit Derivative Organization
C) Collateralized Debt Obligation
D) Collateral Deposit Obligation
- 8. Which investment bank did Michael Burry initially approach to create credit default swaps bets?
A) Goldman Sachs
B) Morgan Stanley
C) JP Morgan Chase
D) Lehman Brothers
- 9. What asset class was at the center of the collapse described in the book?
A) Mortgage-backed securities
B) Stocks
C) Commodities
D) Government bonds
- 10. Which famous investor is known as 'The Oracle of Omaha' and is referenced in the book?
A) Warren Buffett
B) Carl Icahn
C) George Soros
D) Paul Tudor Jones
- 11. What agency oversees the regulation of the stock market in the United States?
A) SEC (Securities and Exchange Commission)
B) FBI (Federal Bureau of Investigation)
C) EPA (Environmental Protection Agency)
D) IRS (Internal Revenue Service)
- 12. What is the term used to describe the practice of combining various loans into one pool and selling slices of that pool to investors?
A) Speculating
B) Leveraging
C) Securitization
D) Hedging
- 13. Who famously said, 'There ain't no such thing as a free lunch' and is mentioned in the book?
A) Paul Samuelson
B) John Maynard Keynes
C) Milton Friedman
D) Adam Smith
- 14. What term describes the practice of making a profit on the difference between buying and selling prices of the same security?
A) Diversification
B) Speculation
C) Leveraging
D) Arbitrage
- 15. What is the name of the financial instrument that gives the owner the right to sell an asset at a specified price within a specified period?
A) Put option
B) Stock option
C) Call option
D) Bond option
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