- 1. Who is the author of the book 'The Big Short: Inside the Doomsday Machine'?
A) Michael Lewis
B) Ben Bernanke
C) Sylvia Nasar
D) Daniel Kahneman
- 2. In what year was 'The Big Short: Inside the Doomsday Machine' first published?
A) 2008
B) 2010
C) 2014
D) 2016
- 3. Which financial product played a key role in the events described in the book?
A) Savings accounts
B) Stock options
C) Credit default swaps
D) Treasury bonds
- 4. Which major investment bank collapsed during the financial crisis?
A) Morgan Stanley
B) Goldman Sachs
C) Lehman Brothers
D) JP Morgan Chase
- 5. Who founded the hedge fund Scion Capital in the book?
A) Steve Eisman
B) Mark Baum
C) Michael Burry
D) Greg Lippmann
- 6. Which government-sponsored enterprise played a significant part in the housing market collapse?
A) Fannie Mae
B) Freddie Mac
C) Ginnie Mae
D) Sallie Mae
- 7. What does 'CDO' stand for in the context of the book?
A) Collateralized Debt Obligation
B) Credit Derivative Organization
C) Credit Default Option
D) Collateral Deposit Obligation
- 8. Which investment bank did Michael Burry initially approach to create credit default swaps bets?
A) JP Morgan Chase
B) Lehman Brothers
C) Goldman Sachs
D) Morgan Stanley
- 9. What asset class was at the center of the collapse described in the book?
A) Government bonds
B) Mortgage-backed securities
C) Stocks
D) Commodities
- 10. Which famous investor is known as 'The Oracle of Omaha' and is referenced in the book?
A) Paul Tudor Jones
B) Warren Buffett
C) Carl Icahn
D) George Soros
- 11. What agency oversees the regulation of the stock market in the United States?
A) EPA (Environmental Protection Agency)
B) FBI (Federal Bureau of Investigation)
C) IRS (Internal Revenue Service)
D) SEC (Securities and Exchange Commission)
- 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) Hedging
B) Speculating
C) Securitization
D) Leveraging
- 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) Speculation
B) Leveraging
C) Arbitrage
D) Diversification
- 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) Stock option
B) Put option
C) Call option
D) Bond option
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