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This quiz consists of 5 multiple choice and 5 short answer questions through The Fall.

Multiple Choice Questions

1. When Russia first experienced turmoil, Long-Term was confident that what would happen?
(a) Spreads would converge.
(b) The country would recover.
(c) Spreads would never meet.
(d) Investors would back out.

2. In its first bad year, what did Long-Term maintain?
(a) A good reputation.
(b) All of these.
(c) A strong energy.
(d) A great workforce.

3. How much did banks and investors make in conjunction with Long-Term?
(a) 1-200 million.
(b) Several hundred thousand.
(c) 1 million.
(d) 50 million.

4. What was the typical scenario for bond investors in 1994?
(a) Loss.
(b) Substantial gains.
(c) Minimal gains.
(d) Few invested in bonds.

5. What was Long-Term's signature trade based on?
(a) None of these.
(b) Consistency of volatility.
(c) Consistency of investments.
(d) Consistency of failure.

Short Answer Questions

1. What resource close to Long-Term began to experience financial difficulties following the financial problems in Russia?

2. Meriwether believed that risk and volatility were what?

3. What did the banks and investors use to estimate Long-Term's assets?

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

5. In 1997, who awarded Long-Term the loan warrant it had requested?

(see the answer key)

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