The Big Short: Inside the Doomsday Machine by Michael Lewis
- 1. Who is the author of the book 'The Big Short: Inside the Doomsday Machine'?
A) Michael Lewis
B) Sylvia Nasar
C) Daniel Kahneman
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) Treasury bonds
B) Stock options
C) Savings accounts
D) Credit default swaps
- 4. Which major investment bank collapsed during the financial crisis?
A) JP Morgan Chase
B) Lehman Brothers
C) Morgan Stanley
D) Goldman Sachs
- 5. Who founded the hedge fund Scion Capital in the book?
A) Mark Baum
B) Steve Eisman
C) Greg Lippmann
D) Michael Burry
- 6. Which government-sponsored enterprise played a significant part in the housing market collapse?
A) Fannie Mae
B) Ginnie Mae
C) Sallie Mae
D) Freddie Mac
- 7. What does 'CDO' stand for in the context of the book?
A) Credit Derivative Organization
B) Credit Default Option
C) Collateral Deposit Obligation
D) Collateralized Debt Obligation
- 8. Which investment bank did Michael Burry initially approach to create credit default swaps bets?
A) Morgan Stanley
B) Goldman Sachs
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) Government bonds
C) Stocks
D) Commodities
- 10. Which famous investor is known as 'The Oracle of Omaha' and is referenced in the book?
A) Carl Icahn
B) Warren Buffett
C) George Soros
D) Paul Tudor Jones
- 11. What agency oversees the regulation of the stock market in the United States?
A) FBI (Federal Bureau of Investigation)
B) EPA (Environmental Protection Agency)
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) Securitization
B) Leveraging
C) Hedging
D) Speculating
- 13. Who famously said, 'There ain't no such thing as a free lunch' and is mentioned in the book?
A) Adam Smith
B) Paul Samuelson
C) Milton Friedman
D) John Maynard Keynes
- 14. What term describes the practice of making a profit on the difference between buying and selling prices of the same security?
A) Arbitrage
B) Leveraging
C) Diversification
D) Speculation
- 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) Bond option
B) Put option
C) Call option
D) Stock option
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