Question: QUESTION 40 According to Michael Burry, when will the adjustable rates on the mortgages kick in, causing defaults to skyrocket? 1st quarter of 2007 2nd
QUESTION 40
According to Michael Burry, when will the adjustable rates on the mortgages kick in, causing defaults to skyrocket?
| 1st quarter of 2007 | ||
| 2nd quarter of 2007 | ||
| 3rd quarter of 2007 | ||
| 4th quarter of 2007 |
QUESTION 41
How did the real estate agent refer to the current market?
| A downturn | ||
| A recession | ||
| A gully | ||
| An upswing |
QUESTION 42
How much did the real estate agent originally sell the house for?
| $350K | ||
| 480K | ||
| $585K | ||
| $650K |
QUESTION 43
How much will the current owner let the house go for now?
| $350K | ||
| 480K | ||
| $585K | ||
| $650K |
QUESTION 44
How many of the loans originated by the mortgage brokers are adjustable rate mortgages?
| 60% | ||
| 70% | ||
| 80% | ||
| 90% |
QUESTION 45
What is a NINJA loan?
| A loan that has hidden terms | ||
| A loan where the job or income is not verified | ||
| A loan that makes the originator a lot of money | ||
| A loan that has a high interest rate |
QUESTION 46
The mortgage broker Mark Baum talks to makes how much on a fixed rate mortgage?
| $1000 | ||
| $2000 | ||
| $5000 | ||
| $10,000 |
QUESTION 47
How does Mark Baum know there is a housing bubble?
| Because the lady he talks to has no credit but owns five houses and a condo | ||
| Because the lady he talks to has only one mortgage loan | ||
| Because the lady he talks to has a job with W-2 income | ||
| Because the lady he talks to has all fixed-rate mortgages |
QUESTION 48
When Vinny first buys credit default swaps from Jared, how much does he buy?
| $20M | ||
| $30M | ||
| $40M | ||
| $50M |
QUESTION 49
When Ben review what Jamie and Charlie sent, he says it:
| Made him laugh | ||
| Made him angry | ||
| Scared him | ||
| Excited him |
QUESTION 50
Jamie and Charlie need Ben's help to do what?
| Get an ISDA | ||
| Get a loan | ||
| Shelter money | ||
| Provide a front for their company |
QUESTION 51
Truth is like
| a slippery slope | ||
| Poetry | ||
| Smoke | ||
| a moving target |
QUESTION 52
When the mortgage delinquencies begin to rise what happens to sub-prime bond prices?
| They go up | ||
| They go down |
QUESTION 53
Which ratings agency does Mark Baum visit?
| SEC | ||
| NASDAQ | ||
| Standard & Poor's | ||
| Moodie's |
QUESTION 54
Standard and Poor's believes the delinquency rates are
| Not so bad | ||
| Within their models | ||
| Probably going to turn around | ||
| Not high |
0.634 points
When Michael Burry changes the value of Scion capital on the white board, what is the new percentage?
| 9.3% | ||
| 10.2% | ||
| 11.3% | ||
| 12.6% |
QUESTION 56
Ben suggest they all go to which city?
| Las Vegas | ||
| Los Angeles | ||
| Dallas | ||
| Miami |
QUESTION 57
Mark Baum asks how likely it is that sub-prime losses will stop at
| 2% | ||
| 5% | ||
| 7% | ||
| 10% |
QUESTION 58
Jamie's brother's ex-girlfriend works for who?
| Standard and Poor's | ||
| The SEC | ||
| Moodie's | ||
| The Governor of New York |
QUESTION 59
At dinner, Charlie suggests that their next move should be to do what?
| Bet against the AA traunches | ||
| Bet against the BBB traunches | ||
| Sell all their credit default swaps | ||
| Quit trading all together |
QUESTION 60
As the mortgage market begins to crash, what happens to the value of the CDOs?
| They go up | ||
| They go down | ||
| They stay the same |
QUESTION 61
Jamie and Charlie visit a friend at which newspaper?
| The New York Times | ||
| The Washington Post | ||
| The Wall Street Journal | ||
| USA Today |
QUESTION 62
What is Morgan Stanley's exposure on the credit default swaps?
| $1 Billion | ||
| $5 Billion | ||
| $15 Billion | ||
| $20 Billion |
QUESTION 63
When Michael Burry begins to sell his position, what is its face value?
| $1.1 Billion | ||
| $1.2 Billion | ||
| $1.3 Billion | ||
| $1.4 Billion |
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