|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Dear Investors.
Multiple Choice Questions
1. What were popular pools in 1993?
(a) Green energy.
2. What notable company went bankrupt in the 1970's?
(a) Penn North Distillery.
(b) Penn Central Railroad.
(c) Penn Coal.
(d) Penn Weapons Industry.
3. What did Long-Term expect foreign banks to invest?
(a) $1 million.
(b) Only individuals could invest.
(c) $10 million.
(d) $100 million.
4. What is the method of paying a percentage of a bond called?
(a) A bond fee.
(b) A trim.
(c) A percentage price.
(d) A haircut.
5. What unusual event happened when Meriwether began working with Treasury futures?
(a) He lost millions.
(b) The U.S. government collapsed.
(c) The price fell.
(d) The price rose.
Short Answer Questions
1. In bond trading, what are loans backed by collateral called?
2. How much money did Meriwether need to start Long-Term?
3. In 1993, what was happening more than usual in America?
4. What affected bond trading in the 1970's?
5. What level of risk did Long-Term offer?
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