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This quiz consists of 5 multiple choice and 5 short answer questions through On the Run.

Multiple Choice Questions

1. What is the method of paying a percentage of a bond called?
(a) A trim.
(b) A bond fee.
(c) A haircut.
(d) A percentage price.

2. What did Long-Term do when IOs started to fall?
(a) Sell their shares.
(b) Explain the situation to investors.
(c) Lie to investors.
(d) Buy them up.

3. What was Meriwether's team allowed to do, following the Treasury bill deal?
(a) Coach the office.
(b) Set Treasury standards.
(c) Vacation in Italy.
(d) Spread trades.

4. What unusual event happened when Meriwether began working with Treasury futures?
(a) The price rose.
(b) The price fell.
(c) He lost millions.
(d) The U.S. government collapsed.

5. In bond trading, what are loans backed by collateral called?
(a) Repo financing.
(b) Mini trades.
(c) Exclusive trades.
(d) Fair financing.

Short Answer Questions

1. Where did Meriwether work in 1979?

2. What notable company went bankrupt in the 1970's?

3. In 1994, what market did Long-Term begin to express an interest in?

4. What notable invention changed the face of trading in the 1970's?

5. What did Long-Term do with off-the-run bonds?

(see the answer key)

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