The Big Short 2 Question Preview (ID: 7300)
POLS Presentation On The Big Short, Chapter 1, A Secret Origin Story.
TEACHERS: click here for quick copy question ID numbers.
Who was hired by Eisman to help pinpoint the “unpleasant odor” wafting from the subprime mortgage industry?
a) Meredith Whitney
b) John Paulson
c) George Bush
d) Vincent Daniel
What is the term for the recurring problem with the subprime loans that went conveniently overlooked by investment companies?
a) Delinquency
b) Inefficiency
c) Ammunition
d) Accumulation
Which of the following is NOT a true statement concerning the subprime mortgage industry?
a) It resembled a ponzi scheme
b) It employed goofy accounting
c) It booked mortgages as profit before they were repaid
d) It was looking out for the needs of poor Americans
What SPECIFICALLY made Household Finance Corporation grow bigger than ever in the early 2000\'s?
a) The internet bust
b) The second mortgage
c) International hedge funds
d) The economic boom of the 90's
What did Eisman recall as the defining moment in his life?
a) The death of his father
b) The dissolving of the Household Finance Corporation
c) The death of his son
d) The end of his employment at Salomon Brothers
By asking repetitive, seemingly infantile questions, what did Eisman reveal about the majority of Wall Street?
a) They did not actually know what they were talking about a lot of times.
b) They had an extensive knowledge of the situation and plans for rectifying it.
c) They had extensive knowledge of the situation and did not care about the people affected.
d) They were all aliens.
What did big-name Wall Street banks use to disguise their role in subprime lending from the general American audience?
a) Sieves
b) Shields
c) Shelves
d) Slacks
What relationship did subprime mortgages create between the bond world and the equity world?
a) bond>equity
b) equity>bond
c) equity=bond
d) They had no effect.
What was the Golden Rule according to Eisman?
a) Do unto others as you would have them do unto you.
b) God, Gold and Glory.
c) The people who have the gold make the rules.
d) Never lend to people who dont have gold.
For whom did the subprime mortgage market determine the financial future?
a) Homeowners
b) Stock traders
c) Bond traders
d) Everyone
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