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

Multiple Choice Questions

1. What was the credit limit on hedge funds?
(a) $1 billion.
(b) $50 million.
(c) $100 million.
(d) There wasn't one.

2. What did Long-Term avoid by working with derivatives instead of stocks?
(a) Profit.
(b) Outside interest.
(c) Fees.
(d) Disclosure.

3. How much of the face value of a bond do buyers typically pay?
(a) 15%.
(b) 10%.
(c) 1%.
(d) 25%.

4. Why did Long-Term trade in Italy?
(a) Meriwether was Italian.
(b) The opportunity for big returns.
(c) The tax write-off opportunity.
(d) It was a safe market.

5. In 1996, what was Meriwether encouraging Long-Term to do?
(a) Hire new employees.
(b) Break the law.
(c) Stick with the tried and true.
(d) Investigate new territory.

Short Answer Questions

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

2. In August 1998, how far down was Long-Term for the month?

3. In 1998, who published Meriwether's letter to his clients?

4. In 1994, why did the yield raise on the thirty year Treasury bond?

5. In the mid-1990's, what was the ratio of leverage on Wall Street?

(see the answer key)

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