correct sentence

[Casiopea]

I don't know what Swan is arguing there, so I can't enlighten you anymore than he has at this point, but what I can add is this. I get two different readings here. Does anyone else?

Max: "What's the matter?"

[1] Max asked me what was the matter.
=> I was sick and needed to go home.

[2] Max asked me what the matter was (about).
=> It was about a client's missing file.

To me, what can be the object of the preposition about, in which case the subject is the matter and the verb was appears to end the clause, reading [2], or what can be the subject of the clause, in which case the verb was sits mid-clause and the matter functions as a subject complement, reading [1].

There's one more possibility, but it reads awkward, [3]. How does it sit with you?

[3] Max asked me what was the matter (about).

All the best.

[kohyoongliat]

Thanks, Casiopea.

[Riyadh]

I think you can use either structure. My simple answer is that if you are asked "who are your favourite team?", you can answer "my favourite team are Real Madrid, or Real Madrid are my favourite team". So, as far as I know, you can either invert the indirect question or just keep the usual structure of a statement when using VERB TO BE.
She asked me what's my name=She asked me what my name is.