The Big Short chapter 3 review

1. What Chinese national who came in second in a math competition in China accompanied Greg Lippmann in Chapter 3?

• Euguene Xu.

• Steve Eisman.

• Meredith Whitney.

•  Michael Oher.

 In Chapter 3, soon all the CDSs AIG FP sold consisted primarily of what?

• Subprime mortgages.

•  Auto loans.

• Pork futures.

• Gold and silver.

Who began taking the bottom tranches of their mortgage bonds and packaging them together to create CDOs in Chapter 3?

• Standard & Poors.

• Scion Capital.

• Cornwall Capital Management.

•  Goldman Sachs.

What does CDO stand for?

• Common debt obligations.

• Client debt options.

• Calculated debt options.

•  Collateralized debt obligations.

Who thought that if AIG stopped buying the bonds, the subprime mortgage bond market would collapse, making him a fortune in Chapter 3?

• Greg Lippman.

• Meredith Whitney.

• Michael Lewis.

• Euguene Xu.

What is the name of Mike Burry's investment group?

• Cornwall Capital Management.

• Moody's.

• Oppenheimer and Co.

• Scion Capital.

How often did holders of CDSs have to pay the insurance premiums?

• Every month

• Every 6 months

• Every decade

• Every second year

Where is the headquarters of AIG?

• Dusseldorf, Germany

• New York City, USA

• London, England

• Paris, France

Who is Gorgan Gekko?

•  The accountant who helped Greg Lippmann figure out how to short mortgage Bonds

• A famous Wall Street untrustable investor who bet against the subprime mortgage bonds.

• Famous character from the movie Wall Street. He was completely untrustable.

• The man who made the first CDO and sold these to Goldman Sachs

 What does a violation of code mean?

• This means to write a new computer code and allow the CDSs to be traded

• This refers to a secret message that has now been revealed

• This refers to a set of rules that have been broken.

•  This refers to an attempt to steal financial information from a competing bank