Name: _________________________ | Period: ___________________ |
This quiz consists of 5 multiple choice and 5 short answer questions through The Human Factor.
Multiple Choice Questions
1. Once crisis hit, how many weeks did it take for the partners to lose $3.6 billion?
(a) 20.
(b) 1.
(c) 5.
(d) 52.
2. In 1998, what act led Long-Term to a fall?
(a) Shorting the Russian market.
(b) Investing in the Asian market.
(c) Putting money into Italy.
(d) Shorting the U.S. market.
3. What did the incident on August 21 cost Long-Term?
(a) $1 billion.
(b) $150 million.
(c) $2 billion.
(d) $200 million.
4. What level of risk did Long-Term offer?
(a) High.
(b) Medium.
(c) Low.
(d) None.
5. What did the banks and investors use to estimate Long-Term's assets?
(a) History of investments.
(b) Net worth of investors.
(c) All of these.
(d) Their exposure.
Short Answer Questions
1. In 1998, who published Meriwether's letter to his clients?
2. What is the method of paying a percentage of a bond called?
3. What hedge fund caused a pound devaluation in Europe but made over a billion dollars?
4. Meriwether believed that risk and volatility were what?
5. In August 1998, how far down was Long-Term for the month?
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