Big Short

 Who was taking on most of the risk of the subprime collapse?

•  Goldman Sacks

• AIG

• Greg Lippmann

• Steve Eisman

What did Eugene Xu find out that convinced made Greg Lippman very happy about buying CDSs?

• They didn’t need to collapse; they merely needed to stop rising so fast for the CDSs to make money

• House prices had to all collapse; they merely needed to lose 90% of their value for the CDSs to make money.

• House prices had to keep going up fast for the CDSs to make money.

• House prices have to double in price in the next six months for the CDSs to make money.

Why did Greg Lippmann fly to London to have a meeting with an AIG representative?

• To merge with Goldman sacks and start shorting Home Equity Mezzanine Tranches.

• To ask them to invest in his hedge fund that had a billion dollars worth of CDSs.

• To try and convince them to start buying CDSs.

• To try and convince them to stop ensuring  CDOs against defaults.

Complete this sentence from chapter 3: Millions of Americans had no ability to repay their mortgages unless their houses _______________ in value.

• fell dramatically

• fell slightly

• stayed the same

• rose dramatically

The movie "The Big Short" primarily deals with:

• The technology boom and bust of the early 2000s

• The 2007-2008 financial crisis and the housing market collapse

• The creation of the Euro

• The Wall Street crash of 1929

Why do the main characters decide to "short" the housing market?

• They predict a housing market collapse.

• They believe that the housing market will grow indefinitely.

• They are motivated by government incentives.

• They want to increase the price of housing.

Who was the author of the book 'The Big Short'?

• Michael Lewis

• Malcolm Gladwell

• Nassim Nicholas Taleb

• Stephen King

What financial instrument did the characters in 'The Big Short' primarily use to bet against the housing market?

• Credit Default Swaps (CDS)

• Stocks

• Bonds

• Mutual Funds

Which investment bank is prominently featured in 'The Big Short' for its role in the financial crisis?

• Lehman Brothers

• Goldman Sachs

• Morgan Stanley

• J.P. Morgan

What was the primary cause of the financial crisis depicted in 'The Big Short'?

• Subprime mortgage lending

• High oil prices

• Stock market crash

• Cryptocurrency collapse