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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 did Long-Term do with off-the-run bonds?
(a) Hold them for profit.
(b) Unload them quickly.
(c) Avoid them.
(d) Loan them to other firms.

2. Once in business, what did Long-Term have an easy time getting from banks?
(a) Money.
(b) Endorsements.
(c) Personal information.
(d) Workers.

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

4. In 1994, what market did Long-Term begin to express an interest in?
(a) Local.
(b) Chinese.
(c) International.
(d) Chicago.

5. In 1994, why did the price of bonds drop?
(a) There was too much wealth in America.
(b) Property value went down.
(c) The Fed lowered interest rates.
(d) The Fed raised interest rates.

Short Answer Questions

1. In 1993, what was happening more than usual in America?

2. How much of the face value of a bond do buyers typically pay?

3. What did Long-Term think about the financial crisis that hit in August of 1998?

4. During the turmoil of 1998, investors avoided Long-Term because they were trying to avoid what?

5. During the financial crisis in 1998, what did the partners keep from the workers?

(see the answer key)

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